It is so simple we can test it in this thread. I send 400 XYZ to @gurtsgarden, with the Ripple protocol from 2003, and also using Resilience on top of it, a 4% tax. Neither @gurtsgarden or me have any credit lines to us, so, the tax is "refunded" to me, leaving an IOU of 400 XYZ.
Then @scottsantens pays @gurtsgarden 300 XYZ, still with Ripple protocol from 2003, and Resilience on top with 4% tax-rate. The reallocation now "travels" through two "transaction pathways" (called credit lines in @rfugger's Ripple. )
@Cryptowitch2 sends 100 XYZ to @gerd27836653, and since neither have any IOUs to them, the tax is still refunded. Resilience is still not doing much, as you see, it achieves a "global medium" for basic income when populated by more people, but scales from nobody to infinite size.
@scottsantens then pays @gerd27836653 200 XYZ, and @gerd27836653 does not trust @scottsantens directly, but trusts @gurtsgarden, so the payment is routed via @gurtsgarden (the Ripple protocol, 2003), with taxes on every intermediary in payment routing (the Resilience protocol. )
@gerd27836653 then sends a payment of 400 XYZ to @resilience_me. The Ripple protocol finds a circle of debt, and clears 196 XYZ between @resilience_me, @gurtsgarden and @gerd27836653. In this time, @Cryptowitch2 has received in total 12 XYZ in basic income. Scales with people.
@gerd27836653 then sends a payment of 400 XYZ to @resilience_me. The Ripple protocol finds a circle of debt, and clears 196 XYZ between @resilience_me, @gurtsgarden and @gerd27836653. In this time, @Cryptowitch2 has received in total 12 XYZ in basic income. Scales with people.
The whole thing in a GIF,
@OttoGunger then makes a payment to me (@resilience_me ) of 300 XYZ. I do not trust @OttoGunger but I trust @gurtsgarden, so with the Ripple protocol, payment is routed via one hop. The payment forms a credit loop between @resilience_me and @gurtsgarden and clears credit.
@Cryptowitch2 has now received 26 XYZ in basic income in total, by "multi-hop debt reduction", from Resilience as a global medium that provides basic income similar to how the internet lets people communicate (transmit data. )
now if we can get that a little more understandable for uneducated poor people - and use a different term for 'tax' - maybe just call that a 'network/transaction fee'
Language evolves. There is nothing about taxation that says it has to use coercion, just like governance does not have to use coercion, "governance 2.0" is about voluntary markets for government, Paul Émile de Puydt talked about that 150 years ago, Panarchy. There also isn't anything about "state" that says it has to use coercion, the Nakamoto consensus is a non-coerced state. Most people I bump into that get triggered by the word "taxes" are people who identify with some ideology like "libertarianism" that screams that people should not have ideology. That is just double-speak, statism. I do not care about the monopoly on violence, I am interested in P2P, Resilience is a taxation system.