The Ethereum founder Vitalik Buterin has lifted a new crypto-currency into the spotlight, to fight the prevailing inequality of Wealth in the United States. Since the replacement of the Gold standard in 1971, the value of the USD has decreased steadily, and assets have shifted from the poor to the Rich more.
The new crypto currency is created as a response to the redistribution of Wealth in the United States within the movement “Occupy Wall Street”. According to the designer, and social activist, Micah White Sparkle” (the Name of the crypto currency) is a focused”, the first redistribution currency, the addressed Problem. It is the goal to solve the same problems, tried to solve Occupy Wall Street with Ethereum, in order to establish a “better money”. The System behind it is simple: “When the Rich spend money, the poor their share”.
White that Sparkle will provide for more law and order (freely translated):
So Sparkle works: Every Time when Sparkle is purchased or transferred will be taxed 2% and on the economy as a whole is redistributed.
This 2% tax is a transaction tax, which is reminiscent of the Tobin tax or Robin Hood tax, with a significant difference: The revenue from the tax will be proportionally redistributed to everyone in the economy. The System does not punish prosperity – after all, the Rich receive a larger share of the transaction tax – and rewarded however poor.
Imagine, we would all benefit from the luxury consumption of the Elite.
Ethereum founder Vitalik Buterin supports the basic idea of Sparkle and proposes different ways of how the 2%tax can be distributed (freely translated):
I really like that one! My main problem with the redistribution of the tax to the Hodler is that, in practice, inequality of wealth tends to be higher than the inequality between income and consumption, so that this could backfire. I have a few other ideas of where, in my opinion, the funds from the tax pot should go.
Buterin describes that egalitarian Ethereum-bite applications in the sour Apple and a good way to represent people and not just crypto-currencies. Especially public goods should be translated to be funded in his opinion in order, so that all people can identify groups of professional (free):
In General, I have the idea of a “tip” by social norms to enforce the financed public goods in any way, always for a really cool idea kept.
Ideas on where to go to the tax pot: The “obvious default” is the Per-person-UBI[universal basic income].
Besides these conditions, Sparkle can be due to the following advantages and characteristics characterized by:
- Sparkle has no power off or pause function.
- Sparkle may not be changed or modified interrupted.
- Sparkle is a Protest offers an Alternative.
- Sparkle to adopt new economic laws, which could form the basis for a better society.
- Sparkle’s Design combated Wähungsspekulationen and is supported by an auditable Reserve of the ETH, which guarantees a minimum value.
This Blockchain project aims to combat the big Problem of the financial Unjustified, that the world exists. White goes on to state that the Ethereum Foundation has invited you, and you will be speaking at the next DevCon, the upcoming Ethereum competition for developers and researchers. Buterin was interested in exploring the crypto-currency, in order to determine the actual potential.
Featured Image: Hyejin Kang | Shutterstock