Harbinger Tax Is a Hybrid Solution To Domain Names: Ethereum Co-Founder

Ethereum Co-founder and famous crypto analyst Vitalik Buterin participated in a twitter thread on domain names talking about the importance of …

Harbinger Tax Is a Hybrid Solution To Domain Names: Ethereum Co-Founder

Harbinger Tax Is a Hybrid Solution To Domain Names: Ethereum Co-Founder

  • The thread began with American entrepreneur Scott Banister losing his NIST account.
  • Balaji Srinivasan replied that he loved the idea in theory but had doubts about its practicality in functioning.
  • This exchange is similar to the thread by Uniswaps Exchange Engineer Noah Zinsmeister.

One of the hottest topics in the crypto-market right now is the domain pricing on small character names. Ethereum Co-founder and famous crypto analyst Vitalik Buterin participated in a twitter thread on domain names talking about the importance of Harberger tax on them.



He believes that not doing so will encourage corruption in the long run. He further also spoke of Harber
ger Tax as partial ownership and explained his insights on how it can prevent a monopoly.

The thread began with American entrepreneur Scott Banister losing his NIST account. His wife and entrepreneur, Cyan Banister, announced that the report had been stolen and changed. She further said that they could not retrieve it due to the new rule on 4-character names.

Order of events: This account @im_ice_cubes stole my husband’s account (those followers are his) and changed the name of the account making @nist availble. Why they would do that seems fishy. Husband couldn’t get name back because it is four letters (new rule). Gov takes it. https://t.co/HPlsPLW3ts

— Cyan (@cyantist) December 28, 2019

This intrigued Balaji S Srinivasan, the cofounder of Coin Centre, who believed that domain names and user names should be private property. He stated that in the medium term, the current regulations would lead to sites that create tradeable usernames.

“I believe new sites will create that use crypto domains and NFTs for tradeable usernames,” He said. This evoked a response from Vitalik, who spoke of Harberger tax as a means to counter first-mover privilege.

Incredible series of events.

Scott Banister has accepted the outcome — but in the medium term, I believe new sites will be created that use crypto domains and NFTs for tradeable usernames.

These should be private property. https://t.co/2hy0lYmlCm

— Balaji S. Srinivasan (@balajis) December 28, 2019

Eh, IMO small-letter names should be Harberger-taxed or something similar. Otherwise the system feels attractive in the short term but first mover privilege corrupts it in the long term.

— vitalik.eth (@VitalikButerin) December 28, 2019

A user, marc, asked the Ethereum Co-founder to explain the functioning of the Harberger tax. In response to that, Vitalik said that it is a partial ownership system. “. The owner sets a price at which anyone can buy the asset from them, and they must pay a tax proportional to that price.” He added.

He also explained that the objective of the tax is to counter the monopoly in the system and obtain revenue that can use for funding.

Drop me your best insight into Harbinger tax, Vitalik.

Haven’t spent time to consider it but in a perfunctory glance I see nothing. In fact, I see an obscure reaffirmation of something quite a bit broader and what is likely the end goal regardless.

— Marc (@azeroz) December 28, 2019

Balaji Srinivasan replied that he loved the idea in theory but had doubts about its practicality in functioning. In such a system, setting the price too low will, and it brought out under, whereas setting it too high will lead to a substantial annual fee. He wondered how the everchanging rates of the crypto market would cope with the system.

He questioned if the system will house a 30 – day repricing policy. He also pointed out that this will disadvantage small start-ups. They will either forced to pay a large amount of tax or have their name bought by more prominent companies.

I love the idea in theory. Set the price of your property too low, and it might get bought out from under you. Set it too high, and you have to pay a huge annual fee.

But given how dynamic the prices of real estate or crypto are, I’d like to see how it works in practice.

— Balaji S. Srinivasan (@balajis) December 29, 2019

So, two thoughts.

1) Is there an optimal re-valuation period? Eg every 30 days you reprice it?

2) It seems to cause uncertainty for small startups and disadvantage them vs large cos. Either the startup pays a big fee, or the bigco can just buy their name out from under them.

— Balaji S. Srinivasan (@balajis) December 29, 2019

To this, Vitalik Buterin recommended a limited price-capped version. He suggested a 250 USD per year annual fee for anyone who wanted to keep their name. To pay less than the amount, one must open his doors for anyone who wants to buy it at (the annual fee you pay) / (the tax rate).

He also proposed the function asymptotic: buy price = fee * 250 / tax rate / (250 – fee) to get rid of the sharp cliff. He stated that the goal is to tax the ‘squatter ecosystem’ and “force them to serve the public good more.”

I recommend starting with a limited price-capped version: if you pay $250/year, no one can take the name away from you. The main goal would be to tax the squatter ecosystem and force it to serve the public good more.

— vitalik.eth (@VitalikButerin) December 29, 2019

To clarify, if you pay *less than* $250/year, then someone can grab it from you at a price of (the annual fee you pay) / (the tax rate). You can also get rid of the sharp cliff by making the function asymptotic: buy_price = fee * 250 / tax_rate / (250 – fee) pic.twitter.com/VybsgQHU2y

— vitalik.eth (@VitalikButerin) December 29, 2019

Balaji Srinivasan agreed by pointing out that with a price for premium domain registrations, one can tax the squatters without harming the start-ups.

That’s interesting. So essentially for the price of a premium domain registration (some like .inc are $900+), you can deter squatters without imposing too high a fee on startups.

This is a good site to calibrate the exact numbers:https://t.co/YtkaNxEhznpic.twitter.com/FEXw6qUMie

— Balaji S. Srinivasan (@balajis) December 29, 2019

Vitalik Buterin further added that the objective of the Harberger tax is to optimally impose the colonists and ensure that the resale value is proportionate to the actual amount. It also has the advantage of providing a standard interface for sales, he said.

Right. The goal is that under harberger tax the optimal price for squatters to set resale prices is proportional to the actual value of the domain, so the squatter ecosystem is incentivized to set prices optimally to avoid domains going too slow *or* too fast…

— vitalik.eth (@VitalikButerin) December 29, 2019

… *and* they’re forced to offer sales through a standard interface instead of brokers or stupid one-on-one negotiations. Oh, and you’re also taxing the squatters every year, and your tax can actually capture a substantial portion of the value of the system

— vitalik.eth (@VitalikButerin) December 29, 2019

This exchange is similar to the thread by Uniswaps Exchange Engineer Noah Zinsmeister, who complained that a $160/$640 price for a 4/3-character name was ridiculous, and ENS should look at a system where “yearly Harberger-style auctions with a hard max that give existing owners priority.”

The fact that 4/3-character @ensdomains names cost $160/$640 _per year_ is pretty ridiculous. At the very least wouldn’t yearly Harberger-style auctions with a hard max that give existing owners priority if reached be better than this?

— Noah Zinsmeister (@NoahZinsmeister) September 5, 2019

With these multi-faceted views coming in, it is difficult to anticipate where the future of the domain names system and Harberger tax lays.

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Ethereum Gold Project Market Capitalization Reaches $47657.00 (ETGP)

Ethereum Gold Project (CURRENCY:ETGP) traded 3.1% lower against the dollar during the one day period ending at 8:00 AM ET on December 30th.

Ethereum Gold Project (CURRENCY:ETGP) traded 3.1% lower against the dollar during the one day period ending at 8:00 AM ET on December 30th. During the last seven days, Ethereum Gold Project has traded 10.6% lower against the dollar. Ethereum Gold Project has a total market capitalization of $47,657.00 and approximately $30,051.00 worth of Ethereum Gold Project was traded on exchanges in the last day. One Ethereum Gold Project token can currently be purchased for $0.0000 or 0.00000000 BTC on popular exchanges including Mercatox, Hotbit and Token Store.

Here is how similar cryptocurrencies have performed during the last day:

  • Huobi Token (HT) traded 0.6% lower against the dollar and now trades at $2.80 or 0.00037999 BTC.
  • Maker (MKR) traded up 1.7% against the dollar and now trades at $444.52 or 0.06026872 BTC.
  • Crypto.com Coin (CRO) traded 0.7% lower against the dollar and now trades at $0.0344 or 0.00000466 BTC.
  • IOStoken (IOST) traded down 0.3% against the dollar and now trades at $0.0396 or 0.00000526 BTC.
  • FTX Token (FTT) traded down 0.6% against the dollar and now trades at $2.20 or 0.00029867 BTC.
  • OKB (OKB) traded up 2.9% against the dollar and now trades at $2.72 or 0.00036822 BTC.
  • Sai (DAI) traded up 0.3% against the dollar and now trades at $1.01 or 0.00011869 BTC.
  • Seele (SEELE) traded 0.6% lower against the dollar and now trades at $0.14 or 0.00001874 BTC.
  • ZB Token (ZB) traded up 0.7% against the dollar and now trades at $0.19 or 0.00002571 BTC.
  • THETA (THETA) traded up 5.5% against the dollar and now trades at $0.0923 or 0.00001252 BTC.

Ethereum Gold Project Token Profile

Ethereum Gold Project (CRYPTO:ETGP) is a token. Its launch date was October 13th, 2017. Ethereum Gold Project’s total supply is 6,000,000,000 tokens and its circulating supply is 5,874,571,479 tokens. Ethereum Gold Project’s official website is www.etgproject.org. Ethereum Gold Project’s official Twitter account is @

and its Facebook page is accessible here.

Ethereum Gold Project Token Trading

Ethereum Gold Project can be purchased on the following cryptocurrency exchanges: Mercatox, Token Store and Hotbit. It is usually not presently possible to purchase alternative cryptocurrencies such as Ethereum Gold Project directly using U.S. dollars. Investors seeking to acquire Ethereum Gold Project should first purchase Ethereum or Bitcoin using an exchange that deals in U.S. dollars such as GDAX, Changelly or Gemini. Investors can then use their newly-acquired Ethereum or Bitcoin to purchase Ethereum Gold Project using one of the exchanges listed above.

Receive News & Updates for Ethereum Gold Project Daily – Enter your email address below to receive a concise daily summary of the latest news and updates for Ethereum Gold Project and related cryptocurrencies with MarketBeat.com’s FREE CryptoBeat newsletter.

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Bayern Munich Tokens Sell for Over $30000

According to Stryking, the Ethereum-based NFTs are unique cryptographic tokens with the “…rarity, authenticity, and ownership secured and …

Seven bundles of Stryking’s official Bayern Munich non-fungible tokens (NFTs) have been sold at auction for 240.9649 ETH, equivalent to approximately $31,100. One full set of the special Christmas 2019 Edition collection, featuring 24 players from Germany’s most successful football club, went for 133 ETH (around $16,700) while the remaining six bundles contained four cards each.

The value of each four card set varied from 33.9 ETH down to 4.4 ETH depending on the status of the players they portrayed. Top price was paid for the international quartet of Robert Lewandowski, Sven Ulreich, Kingsley Coman and Ivan Perišić.

The numbers dont lie for the excitement around the @stryking_io Holiday Auctions as according to @opensea we had a 6000% increase in the ETH value of sales from the past week!#blockchain#crypto#cryptocurrency#Dapps#ETH#ethereum#bayernmünchen#Bayern#NFT#technewspic.twitter.com/GV7MZwa2FV

— stryking.io (@stryking_io) December 29, 2019

The sale saw a spike in interest for Berlin-based Stryking products with performance analytic charts logging an impressive 6000% increase on the previous week. Until the sale, Stryking were probably best known for Football-Stars, their web and mobile gaming platform aimed at European fans.

Sporting Connections

Stryking made news in 2018 when they garnered support from Portuguese star Luis Figo and are now a subsidiary of Animoca Brands after being acquired in September this year. Animoca Brands have themselves previously enjoyed NFT auction successes with their official connection with Formula 1 motor racing.

Not resting on their laurels, Stryking have already started a second sale for Bayern Munich NFTs – called New Year 2020 Edition Legendary Player Cards – which will run until 6 January.

Ready for some Fireworks? 🎇Our New Year #FCBayern Special Edition cards are out‼️‼️⚽️ Auction is on, make sure to get yours at https://t.co/PsYOU9UxsG#NFT#digitalcollectibles#Blockchain#TokenSalespic.twitter.com/7jDcgn5lPW

— stryking.io (@stryking_io) December 30, 2019

According to Stryking, the Ethereum-based NFTs are unique cryptographic tokens with the “…rarity, authenticity, and ownership secured and guaranteed by blockchain technology.”

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Trade99’s ETC Price Analysis: Is Ethereum Classic on the Way to Outsmart from the Bears?

Ethereum Classic was being traded at $8.06 on July 4, 2019, with the bullish trend, soon started to drop and reached $5.28 with a 34% fall as on July …

Ethereum Classic was being traded at $8.06 on July 4, 2019, with the bullish trend, soon started to drop and reached $5.28 with a 34% fall as on July 17, 2019. It continued to be traded close to $6 mark until August 21, 2019. With a sharp rise, ETC price reached $7.57 on August 22, but dipped down by 23% and reached $5.83 on August 30. On September 25, there was a dip of 27.76% with the price dropping to $4.68. After this drop, the bullish trend ended and the bears have ever since started to dominate the coin.

Ethereum Classic Price

As per the price evaluation of Ethereum Classic since December 17, 2019, it shows an uptrend by 33.54%. It may rise in the near-term and reach near its next resistance $5.81.

Trade99’s analysts recommend to invest money in purchasing new coins and retain the same for the long term. CMF indicator also reflects the bearish stance for ETC. The previous six months’ performance for the coin presents the bearish trend from July till September 25, 2019, post which the bulls are controlling it. Since the end of September 2019 till the present date, the movement for ETC has been almost constant without any drastic rise or fall noted.

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Analyst Who Called Bitcoin’s Crash to $6000 Says Ethereum Bottom In

Take one look at Bitcoin’s chart and you would assume that Ethereum, XRP, and all the rest have had a great 2019 too, but you would be sorely …

Take one look at Bitcoin’s chart and you would assume that Ethereum, XRP, and all the rest have had a great 2019 too, but you would be sorely mistaken in saying that. Per previous reports from NewsBTC, since earlier this month, the price of ETH is actually down in 2019, which comes in stark contrast to Bitcoin’s 95% year-to-date gains.

This harrowing price trend has been attributed to a confluence of factors, one such being that the PlusToken Wallet scam that brutalized many in the industry has a large portion of ETH that is being or will be liquidated, making investors price that potential sell-off in.

Related Reading: Crypto Tidbits: Youtube’s Bitcoin Ban, Ethereum Co-Founder Sells Stash, China’s Digital Currency Nears

Whatever the case, a prominent cryptocurrency analyst that has a solid track record has said that the technicals suggest Ethereum has found a bottom, potentially setting the stage for a return to a bull trend.

Ethereum Has Bottomed? Really?

According to a recent tweet from technical analyst Dave the Wave, Ethereum may have just put in a bottom in terms of its price against the U.S. dollar, looking to the chart below to prove his point.

In the chart, the popular Twitter analyst noted that ETH recently bounced off the 0.786 Fibonacci Retracement level of the price action from the 2018 bottom to the 2019 bottom, while the Moving Average Convergence Divergence (MACD) has shown signs of a reversal on a medium-term basis, boding well for bulls.

Freebie from my alts page.

And that ladies and gentlemen may have been the bottom in ETH. May it be a happy and prosperous new year.🥳 pic.twitter.com/TJZW4SNbLe

— dave the wave (@davthewave) December 30, 2019

So what are Dave’s credentials? Why should we listen to a Twitter analyst whose avatar is the famous Japanese painting of a tsunami?

Well, this trader is the one that called for rationality to return to the crypto markets when BTC was trading above $10,000, claiming the move was a clear overextension of BTC’s long-term growth curve and standards. He went as far as to say that Bitcoin was poised to return to $6,700 — this was months ago.

Related Reading: Math Shows That 2020 Could Be a Great Year for Ethereum Bulls; Here’s Why

Not All Is Fine and Dandy

Not all is well and good for Ethereum though.

Google recently removed the Ethereum interface application MetaMask’s application from the Google Play Store, citing concerns about violations of the company’s financial services policies, meaning that access to the blockchain may be restricted. Coinbase may follow suit with its own decentralized application interface.

Along with bearish fundamental developments, there are also some harrowing analyses in terms of the ETH charts.

Per previous reports from NewsBTC, a trader going by Mac wrote that he expects both altcoins as a class and Ethereum to fall by 20% against Bitcoin, noting that the ETH/BTC pair is currently far above any semblance of support.

This came shortly after another analyst, Velvet, said that Bitcoin’s dominance metric is likely to hit 78% — some 10% higher than current levels — by March, just four-odd months away. He attributed this expectation to the fact that BTC is showing signs it is about to begin its next leg higher — one that will bring it to BTC — meaning that capital flows towards altcoins is likely going to slow at a dramatic pace.

Yes, ETH/BTC could fall buy ETH/USD could rise in dissonance. The point is that not analysts are decisively bullish on the second-largest cryptocurrency.

Featured Image from Shutterstock

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