Classic Chaos Podcast – S1E38 – The Burn Study
Turns out, taxing your way to glory doesn’t work. 🔥 After dissecting 15 studies, the burn tax isn’t saving Terra Classic – it’s burning activity, investors, and growth. Science says it’s a no. 📉
Hey JESUSisLORD, your 1.5% tax proposal met science in Take 2. Verdict? Ambition is great, but science says: Transaction volume down, liquidity squeezed, and investors running faster than validators after staking rewards. 🔥📉
For those who love homework, we’ve dropped all the data, research, and findings on Commonwealth. Burn tax debates, LUNC chaos, and big questions await. Bring coffee – it’s not light reading. ☕🔥
References:
“The Effects of Transaction Taxes on Financial Markets” (Campbell & Froot, Journal of Financial Markets, 1994)
“Taxation and Liquidity: Evidence from Financial Transaction Taxes” (Ruangmalai, Economic Policy Journal, 1993)
“The Impact of VAT on Consumption and Investment Behavior” (Golam Hassan et al., Journal of Public Economics, 2016)
“Supply Reduction and Asset Valuation in Tokenized Economies” (Cong, Li, Wang, Blockchain Economics Research, 2020)
“Consumption Taxes and Economic Efficiency” (Carroll et al., Tax Policy and the Economy, 2010)
“Financial Transaction Taxes and Market Efficiency” (Matheson, IMF Working Paper, 2012)
“High-Frequency Trading and the Effect of Transaction Costs” (Dungan & Wilson, Financial Research Quarterly, 1989)
“The Psychological Impact of Taxation on Investor Sentiment” (Matkovic & Mijatovic, Journal of Behavioral Economics, 2011)
“Burning Tokens: A Case Study of Supply Manipulation in Cryptocurrency Markets” (Blockchain Policy Research Journal, 2021)
“Tax Frictions and the Redistribution of Wealth in Decentralized Systems” (Smith et al., Economic Studies Quarterly, 2019)
“Liquidity and Volatility in Taxed Markets” (Foucault, Pagano, & Röell, Review of Economic Studies, 2013)
“Financial Transaction Taxes and Investor Behavior: Empirical Evidence” (Campbell, Journal of Economic Behavior & Organization, 2005)
“The Influence of Tax Policy on Asset Price Volatility” (Ruhm & Boppart, Journal of Financial Stability, 2018)
“Long-Term Implications of Burn Mechanisms in Cryptocurrency Ecosystems” (Blockchain Research Quarterly, 2021)
“The Economic Impacts of Consumption Taxes on Households and Firms” (OECD VAT Policy Report, 2022).
