Simon de la Rouviere, in his great article What is Harberger Tax & Where Does The Blockchain Fit In? summarizes Harberger Tax as follows:
Harberger's Tax is an economic policy that aims to strike a balance between pure private ownership & total commons ownership to increase the general welfare of society. It helps ensure that property is more productively utilized by society, increasing overall economic productivity and the general welfare of society.
This essentially results in the following two rules:
- Citizens value their property and pay tax on that value. A self-assessed tax.
- At any point in time, anyone else can buy the property from you at that price, forcing a sale.
In InfinitumX, the ownership of each square is governed by Harberger's tax. Which means:
- At the time of first purchase, "citizens" or users will value the square themselves. Which means setting a price they'd be happy to sell it for.
- They will be taxed at a rate of 10% of the total value they have set for their square. So if a square is valued by the
0.1 MATIC, the yearly Harberger's tax for that square would be
This collected tax money is mostly reinvested into the app, airdropped for owners of the squares to promote a healthy economy on the board (details of which we will release soon), and some taken as profit (We are working on details of how to release an InfinitumX Dividend token).