Proto-Taxemes

Johan Nygren
7 min readJul 1, 2016

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Proto-Taxemes are a dumbed-down version of the Resilience system. It does not include dividend pathways and swarm-redistribution. The tax is instead shared amongst every human who has spread a specific Taxeme.

Proto-Taxemes include most of the Taxeme protocol, including anti-Taxemes.

Proto-Taxemes are not basic income, and are meant as a PoC to experiment with Taxemes. For Taxemes to provide basic income, the dividend pathway layer, with swarm-redistribution, is required.

Pooling basic income

The Resilience system includes a layer for pooling ones basic income 1:1 with peers, in a web of trust. Pooling makes the basic income universal, but retains the incentives for doing work of spreading Taxemes, since you only pool with those you’ve chosen yourself, and they are an extension of your self-interest.

Proto-Taxemes can also include this pooling system. The amount of basic income will be very low, since Proto-Taxemes lack swarm-redistribution, but it still lets people experiment with both the Taxeme concept and the pooling concept.

Selling RES

Selling RES is regulated. Only RES that has been taxed, and received as basic income, can be sold. People can place orders for at what price they will sell their unspentBasicIncome, and companies can use this marketplace to exchange their RES for Ether, potentially with a small profit for the person who sold of some of their taxed RES.

This regulation adds a small dis-incentive to selling RES, regulated by market forces, and incentivizes companies to use RES for their entire supply chains.

The sell transaction does not inherit a Taxeme, but it does forward anti-taxemes.

The RES currency is backed by ETH that is held by the RES smart-contract. To drain the Resilience network of all RES would take a long time, providing financial security to the network as whole.

sellRES() is invoked from the ProtoTaxemes contract

Live example using Ethereum-wallet

In this example, a transaction is sent to an address that hosts no Taxemes. The smart-contract looks up the personal Taxeme of _to, and then creates a new Taxeme, and transfers it to msg.sender.

This is what creates ​variation of Taxemes, that each node can govern the rate of their ​personal Taxeme​, that is used to create new Taxemes.

The Taxemes are sorted from lowest to highest, and with first-in-first out when a person hosts two or more Taxemes of the same tax-rate.

The Proto-Taxemes accumulate tax as they replicate, and upon collapse, shares the tax with those who spread it.

Your personal Taxeme can be updated with setPersonalTaxeme() - here in parts per thousand, so 2%

RES-wei payment made using Ethereum-wallet. Inherited one Taxeme, 1000 RES-wei at 2%.

Transaction of 1500 RES-wei to account that hosted the 2%Taxeme. Inherited 2 Taxemes, the 2% Taxeme, then a 3% one.

Taxemes in Social Media

RAQ: Random Asked Questions

How is Taxemes pronounced?

Like Genes and Memes.

How are Taxemes created ?

newTaxeme()​ is invoked when _to has a dominant Taxeme that is their ​personal Taxeme​.

In other words, if _to has no Taxeme, or if their lowest Taxeme, Taxemes[_to][0], has a higher tax-rate than their personal Taxeme.

if(PersonalTaxeme[_to] < Taxemes[_to][0].rate || Taxemes[_to][0] == 0)

What Taxeme is dominant ?

https://magazine.backfeed.cc/resilience-decentralized-basic-income-through-paying-it-forward/

The lowest Taxeme is dominant. Taxemes are meant to form a “Taxeme pool”, similar to a gene-pool, where a set of Taxemes have been created and selected by the network, and that then spread throughout the network as people make transactions, spreading “donation-behaviors”

New Taxemes are only created when a transaction is made to someone whose dominant Taxeme is their ​personal Taxeme. This should not happen very often.

Is a Taxeme the currency or the group ?

The currency is called ​RES and Taxemes are built into it. Taxemes are the tax-collectors. It’s all being built on Ethereum.

What’s the difference between a dominant and personal Taxeme?

Each account has a ​personal Taxeme​, and they can change the tax-rate of it whenever they want. Each account can also host Taxemes that they inherit from others. Each account will have mostly inherited Taxemes.

The rule of lowest first says that the lowest Taxeme is dominant. In the rare cases where that happens to be someone’s personal Taxeme, that personal Taxeme is dominant.

Why is creation of new Taxemes rare?

Think of it like a trend. Most people are not trend-creators, only a small percentage can be trend creators.

Taxemes have ​variation​, selection and heredity, like genes also do. The variation comes from that anyone can set their own tax-rate of their personal Taxeme. Then there is selection, meaning not all Taxemes will be popular.

It sounds like the selection is just based on an algorithm that picks the lowest value?

No, people select. People and companies select who they purchase goods and services from. And people are rewarded for favoring high tax-rate Taxemes. And companies are rewarded by attracting consumers.

So are Taxemes and companies linked to one system or are they all shared?

There will be just one currency, and within it, local ecosystems of Taxemes will exist. Taxemes only spread a limited distance from where they are created, so a Taxeme in one economy will probably not spread too far.

How is that limited?

It’s limited by that Taxemes are destroyed when they have traveled in a circle, similar to the Ripple monetary system concept. You will be able to pay them online with RES if they accept that, and you will then inherit a Taxeme from them, and tax will be collected.

Technically, Taxemes are destroyed through the use of anti-Taxemes, that are seeded in vast amounts by the creator of the Taxeme, and that spread in the opposite direction, from consumer to producer. Each Taxeme has an ID, and each Taxeme is destroyed when they collide with a corresponding anti-Taxeme.

What is the point of destroying Taxemes ?

It makes space for new Taxemes to be created, so the tax-rates can reflect the present state of affairs.

https://steemit.com/ethereum/@johan-nygren/crypto-states-make-taxation-impossible--darwinian-basic-income-is-the-future

Could you explain it as easily as possible ?

Basically, if you buy something from a company that has a high tax-rate Taxeme, you will create a bigger dividend pathway than if they had a low tax-rate Taxeme. When that company then makes future transactions, it in turn creates dividend pathways, and your pathways will connect to theirs. Tax that is collected from transactions that extend from that company will flow to you and you will get basic income from it.

It’s a complex system because it solves a complex problem — how does one incentivize large-scale wealth sharing without using violence ? The Resilience system solves that by making the people do all the work, and rewarding them for doing a good job. The people do the job of enforcing taxation, by choosing to consolidate their purchases from companies that use Taxemes that pay a lot of tax. The people also continue the spread of Taxemes when others in turn consume from them, filling a role similar to pollinators like bees.

http://www.basicincome.org/news/2016/07/johan-nygren-crypto-states-make-taxation-impossible%E2%80%8A-%E2%80%8Adarwinian-basic-income-is-the-future/

I feel like this is the sort of thing that needs a graph

I have a graph online for the ​dividend pathways, from a two year old early prototype.

http://graph.basicincome.co/

http://graph.basicincome.co

Think of dividend pathways as blood vessels. If you buy from the one with a high Taxeme, you get a wider vessel, and therefore a bigger share of all tax that is collected from transactions made later in time by that company, and by those who that company transacted with.

“In my Basic Income #DApp, your safety net emerges from the sum of your financial interactions, allowing you to live and evolve as a global and mobile citizen. Basicincome.co transforms the stage upon which we unfold.”

https://bitnation.co/blog/bitnation-decentralized-government-to-provide-universal-basic-income/
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Johan Nygren

The basic income revolution through p2p-technology, deployed @ a planetary scale.Followed by TED-speakers & SingularityU-CEOs,this is an idea worth spreading !