Web3 land rent and coin tax

Source: Zuo Ye Waibo Mountain

Now is the crisis of the Earth encountering the Three-Body Man, and you are Yun Tianming. You have been living in the Three-Body Man for many years. Now you need to convey some information to the Earthlings, so you have edited three stories:

Story 1:

You are a young man in a small town who can wander around the town and wait until people become young and want to support yourself. There are two options in the market now:

1. Liu’s rich man is kind-hearted and can sell you a piece of land, pay money in one hand and land in the other hand, but the problem is that you lack enough funds to buy the land, so Liu’s rich man is kind-hearted and he said he can rent the land to you., just hand over a portion of the harvest to him;

2. The county master heard that he was kind-hearted and said that he could ask you to book a piece of common land in the county, as long as the wheat was ripe, it would be fine to hand over some of the harvest to the county after it was ripe.

After careful consideration, you choose the land of Liu Caizhu, hoping that you can work hard and buy a piece of land from him after saving up enough start-up funds. However, with the blessing of natural disasters and man-made disasters, there is always not enough food, and sometimes the harvest is stillThe part that was not enough to pay the rent, so the rich man Liu borrowed a loan to let you sow and eat. He is such a great charity.

You also heard that the county master could never find labor to work, and he was ready to sell the land to Master Liu. This would be fine. If you sell it to Master Liu, maybe you can rent it. If you save enough, you can still rent it.Buy it.

Story 2:

You are a young man on earth who can wander around the world and wait until you reach middle age and want to settle down and buy a property. There are two options in the market now:

1. You can choose to pay it in one lump sum, pay the money in one hand, and pay the house in the other hand. In the future, you only need to pay the property fee, water and electricity and grid fee, but you look at the housing prices and pockets, so the bank is kind-hearted and says you can get a loan to buy a house. That’s it.After signing a loan contract, the developer has money to pay wages to migrant workers, and the local government has obtained civil servants’ salaries and pensions;

2. When the Chinese agent on the other side of the ocean heard about it, he was kind-hearted and said that you can buy a house in installments. Now it is a cycle of interest rate cuts, and mortgage loans will become cheaper and cheaper. In the future, you only need to pay a little property tax every year. After repaying the mortgage, you will be permanent property rights.

After careful consideration, you choose to take a mortgage. At least the house is yours now, and you won’t have to pay taxes in the future. However, after three to five years, the government provides less and less services, and community security has become worse and worse.House prices seem to be gradually falling, but the mortgage you pay occasionally is a little less, but the house prices are still expensive compared to the current ones.

At this time, you begin to envy another paradise where property tax is only paid. Property tax is the economic pillar of community security, education and community action. Hayek’s big hand will make the land of heaven build on the earth.

Let’s stop first, and the third story will be told later. In fact, the above stories are not complicated. They are the land rent/tax economic models in the agricultural era and the urban (industrial) era. Under the agricultural economic model, people can only produce land.Economic ties, being demoted to hired farmers and lowly household registration is not the most tragic thing. The unrestrained refugees are free, but they often fall by the road day and night.

Land in the industrial era is still the most important means of production, but the economic value of grain output is rapidly decreasing, and the factories established on it are valuable. Therefore, the income generated by renting land to build factories will quickly exceed the landlords, but production still requires sales.Money is made, and selling it to individuals can directly monetize it, so commercial real estate is popular, but their weak risk resistance leads to them reducing real estate as a carrier of value. The land rent economy has once again become the center of economic activities, and productive activities cannot be compared with it., “re-feudalization” will lead to the unique success of the rich man Liu.

Only by suppressing land rent and maintaining production activities can everyone get rid of the shackles of the land rent economy and allow more people to share the profits of economic activities.

Ethereum is a land rent economy, and ETH is a mint tax

Before we propose a more effective economic policy, let’s take a look at another global commons, Ethereum’s “land” policy.

Similar to the Three-Body Man, there is no concept of private property here. Open source and openness are its underlying concepts. Similar to Linux, fewer developers have created trillions of economic scales. The uniqueness of Ethereum is that Token canGood changes to Linux value has no way to realize it, and it can only rely on donations and hot money. Moreover, the no threshold asset issuance method also allows private property and public value to grow together.Just use ETH and everything makes sense.

If you can understand the profound significance of using ETH, you will find that the recent debate over the expansion route of Layer2-Rollup is meaningless, whether it is Vitalik no longer supports L2 or only mentioning the stage of Stage 1.

The economic model of L2/Rollup is to keep enough L1/Ethereum, and to grab other L2, and the rest are all their own. The tokens issued by it use ETH as the actual reserve, and the more economic activity of L2 is moreHigher, the more stable the value of ETH.

Similar to the relationship between the US dollar<> stablecoins, the logic of ETH<> L2 Token is consistent:

1. Stablecoin issuers need to reserve US dollar assets 1:1. Even if these US dollars are stored in the bank, then equal proportions of US dollars will still be circulated on the chain and play their own value. The collapse of the US dollar on the chain will lead to people relying more on banks.the dollar;

2. The value of L2 Token lies in the role of L2 <> L1, and L2 transactions need to be recognized and confirmed by L1, that is, the Blob space needs to be priced in ETH, so L2 Token actually depends on ETH, but on the contrary, ETH does not depend on it at all.The currency value of L2 Token is stable or has rich usage scenarios.

What changed all this was not L2’s “anti-mindedness”, such as custom Gas Token, nor was it the external DA concept of Celestia, but the land rental route chosen by Ethereum.

First of all, we must admit that AppChain or RollApp has not become mainstream, and ETH Layer 3 is not too threatening. If L2 Token cannot challenge ETH, then L3 is the same.

I have written an article about restaking before. Here I can briefly explain that restaking will further enhance the centrality of ETH, because restaking is the act of monetizing Ethereum security and is denominated in ETH.

That’s why Vitalik separates Rollup from L2 and then separates different stages from Rollup. The purpose of selecting the best is to promote the degree of decentralization of Rollup, but this decentralized Baseline is its Ethereum in dangerous timesMake judgments on its control capabilities and funds to Ethereum.

The reason for the L2 track to be lost is never the dispersion of funds, but the degree of centralization, such as the decline in L1 control caused by the centralization of the sorter.

In this sense, Ethereum is a distinctive land rent economy. The dApp activity and the benefits generated on it are not important, at least not so important. It is more critical to control the entire process of economic generation and distribution.In terms of the Ethereum-ETH system, LRT/LSD is much more friendly to the business of renting block space than L2/Rollup, which is disobedient and intercepts ETH revenue.

The wisdom of raising fish with water

Yun Tianming finally prepared a love story for Cheng Xin:

You are a cosmic maiden who can wander in five-dimensional space, waiting until the earth perishes, and prepare to welcome Cyber ​​Eternal Life. There are two options in the market now:

1. Yun Tianming gives you the 647 small universe. Although it is very small, it is complete and has a self-contained ecosystem, which is enough for you to live here;

2. The returning to the zeroing broadcasts in the universe, hoping to return the mass of the universe stolen by various civilizations and reboot the universe. Only when fish can thrive in the sea and become giant whales traveling around the world.

If you were Cheng Xin, which choice would you make?