I wanted to start a discussion on moving to a modified Harberger Tax model for allocating BNS domain names. My original post is on the stacksgov/sips github issues if you’d like to read more about it.
The motivating reason to move to such a model for BNS names is that it can:
- prevent squatting issues
- make a more liquid market for names
- allow the Stacks blockchain (and thus STX holders) to capture more value that BNS provides vs. having that value captured by third-parties via secondary market sales
While there are valid concerns of using Harberger taxes for domain name allocation, I believe that these concerns can be addressed by modifying the tax to use a price that is a function of time, instead of just one static price.
Again, you can read more about it in a bit more depth on the stacksgov/sips github issues page.
If anyone thinks we can make something like this work, I’d be happy to share some more thoughts I have around it (e.g. determining the best tax rate) and look forward to answering any questions and concerns about this proposal.