Decrease Treasury Tax from 20% to 10%
This governance proposal seeks to reduce the treasury cut from 20% to 10% to enhance staking incentives, improve decentralization, and align economic sustainability with the Cardano ecosystem's long term growth. The adjustment aims to optimize staking rewards without compromising the financial health of the treasury, ensuring a balanced economic model that incentivizes participation and network security.
Reasoning
Written after the vote was cast
What this asks for, and from whom
A parameter change decreasing the treasury tax from 20 percent to 10 percent, intended to increase staking rewards and improve decentralization incentives.
What would have to be true for this to be a good use of treasury funds
Staking rewards affect whether people delegate at all, and delegation is what secures the chain. There is a real argument that a 20 percent treasury cut is high when rewards are already thin in a down market.
What specifically concerns me
Cutting treasury inflow by half while the ecosystem is trying to fund core development, marketing, and integrations is a hard tradeoff, and I want to be honest that this vote sits in tension with my support for large infrastructure budgets. My reasoning was that returning more to stakers strengthens the base of the network, and that a treasury with less money is also a treasury forced to be more selective. I stand by the instinct even though it cuts against spending I have supported.
What I am asking of the proposer if this passes
It was dropped. If treasury tax comes up again, the debate needs actual modeling: treasury runway at each rate against committed spending. That is a numbers question and it deserves numbers, not slogans.