White paper on tax-free plans based on government-issued tokens

General
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White paper on the tax-free plan by government tokens

Summary

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  1. Project outline

• Name: Government-issued token (1-year lock fixed interest type)

• Purpose: Realization of a tax-free national model

• Initial financing: Securing liquid funds for national management

• Securing the national budget: Secure an annual budget of 200 million yen

• Monetary credit formation: Stabilizing currency value with government bond support

• Token type: 1-year lock, fixed interest token

• Total number of copies issued: 100 million copies for initial distribution + 10 billion copies for pre-sale

• Unit price: 0.01 yen/sheet

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  1. Distribution and pre-sale design

• Free distribution: 1 ticket per citizen, a total of 100 million copies

• Pre-sale: 10 billion copies sold

• Distribution of procurement amount:

• Government share: 20% → Annual national budget of 200 million yen

• User share: 80% → Market distribution and holder incentive 800 million yen

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  1. Linkage with the national budget

• The government’s 200 million yen was gradually converted into a stable coin, and the monthly expenditure was 16.66 million yen/month.

• Users control the amount of distribution by gradually unlocking and suppress inflation

• The total national budget is secured at 200 million yen/year

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  1. Exchange function with government bonds

• Exchange target: fixed-interest government bonds with a maturity of 10 years to a maturity of 20 years

• Exchange deadline: 10 to 20 years

• Mechanism:

  1. The public submits holding government bonds

  2. Receive government tokens according to the face value of government bonds

  3. Tokens are locked for 1 year

  4. After expiration, it can be exchanged for stable coins

• Effect: Use government bonds as national assets and support token credit

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  1. Measures to control inflation

• The first year distribution volume is limited by the 1-year lock of the token

• Users are also gradually unlocked (10% per year)

• 20% of the government’s holdings are used as a market buffer

• Due to the small transaction amount of free distribution, the impact of inflation in the first year is almost zero.

• Target inflation rate: within 0 to 0.5%

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  1. Interest payment and incentives

• Tokens have fixed interest

• Interest payment every six months: Pay the equivalent of 0.5% per annum every six months

• For long-term holders, additional compensation and incentives by exchanging stablecoins are provided

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  1. Flow of use (simple)

  2. Free distribution to the public (100 million copies)

  3. Pre-sale issuance (10 billion copies) → Distribution of procurement amount (government 20% / user 80%)

  4. Government’s stablecoin → National budget expenditure (16.66 million yen per month)

  5. Government bonds can be exchanged (matiry in 10 to 20 years)

  6. 1 year lock token expiration → stable coin exchange

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  1. Possibility of tax-free nationalization

• Theoretical basis

• If the state has the right to issue currency, the budget can be operated without tax revenue

• Stabilization of value by supporting government bonds and assets with tokens and stable coins

• A necessary condition

  1. Credit collateral: Guarantee the value of tokens with government bonds and national assets

  2. Distribution management: Precisely manage the amount of issuance and unlocking

  3. Currency supply control: gradual circulation by locking short-term, medium-term, and long-term tokens

  4. Backing of national assets: government bonds, land, infrastructure revenue, foreign exchange reserves

• Risk

• Inflation risk: Price stability collapses due to a surge in circulation

• Credit risk: The value of tokens decreases due to the decline in the value of government bonds and assets

• Political and operational risks: destabilization due to market intervention and delays in issuance adjustment

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  1. Risk management

• Market circulation management when unlocking → inflation control

• Token credit is guaranteed by government bond endorsement

• Integrated management of national budget, yield, and market stability based on long-term plans

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:light_bulb: Supplement

• As the foundation of the tax-free state model, it combines token issuance + government bond linkage + stablecoin management

• From the first year, it is possible to secure a stable national budget and stabilize the market.

• Currency value is stabilized by adjusting issuance volume, unlocking schedule, and interest rates

1 Like
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Giving holders of locked coins a way to utilize them without unlocking them, and especially providing an incentive to use them that way rather than unlocking, would drastically reduce sell pressure if/when unlock occurs. I like this idea.

1 Like
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The translation error has been corrected again.