Token taxes deserve to be explored. 

If holders prefer community tokens rather than VC tokens, founders treat tokens as products, and VCs are here to play the long game, the solution for founders may be to launch a community-first token with a small fee, renounce supply allocation, and give smaller allocations to VCs.

Chat with DeFi 🍄 https://t.me/fungiagents

Here’s why:

- If tokens are products, it makes sense that they generate revenue for its creators, just as any other product in the world. It’s common sense.

- Revenue captured from token consumption can be used to fund development (less capital needed to scale), incentivize growth, cause deflation, and more.

- Founders renounce their supply allocation in exchange for generating revenue from day 1. The door remains open to launch one or more tokens in the future for other purposes (including tokenized equity), and their companies get more valuable because of the revenue and social impact of the token. Sounds good to me.

- Early-stage VCs would take a small allocation of the community first token’s supply, and would start valuing equity more, since the project would be generating revenue from day 1.

Feedback is super welcome!

We’re super interested in discussing this topic with the three groups involved: token holders, founders, and VCs.

Please feel free to share your thoughts, support, or especially, your criticism.

- Token holders prefer to spend a small fee with every swap (let’s say between 20 and 50 basis points) rather than holding an asset with absurd FDV and half the supply owned by founders and VCs. That's the holders' trade-off.