Taxes
Passive income? From every single player in the entire game?
Each reality's three level of government - Federal, territorial and municipal - Provide their residents with a wealth of services and programs. Governments (reality leader) collect player's tax dollars and return them in the form of security, city expansion, health care to NPCs and residents by building hospitals, roads and highways, and numerous other social benefits.
However, leaders have full ability to set negative rates (lending money instead of collecting taxes) or 100% tax rates (complete communism).

Income Taxes

Every resident of each reality has to pay daily taxes out of their total income for that day. This process is automatic on both fronts: Leader set the tax rate and smart contracts executes AFTER the residents agree to pay that rate. Rates can only be adjusted once a month.
In addition, the tax system can be set as progressive instead of a fixed rate all year round. Meaning the more money the residents make from their economic activities inside the game or looting, the more income taxes they pay. The amount of their income that they pay in taxes is expressed as a percentage and goes up in steps, or "brackets".
In order to stop both leaders and players from abusing the system, a poll system can be implemented so that all active players within one reality can vote on building, expansion and major changes to laws of each reality. However, a leader can act like a dictator and it's up to residents how they'd react.

Schedule 1 - Capital Gains (or Losses)

What happens when residents go to war and come back with loads of goodies? Or what happens if they come back from a war not only empty handed, but with a destroyed army that the leader funded?
In other scenarios, what happens when a resident build a house and sells it for profit across metaverses? What about gifts?
These questions are answered in Capital Gains section of tax system.
Section 1
If you have a capital gain, you may be able to do one of the following:
  • Defer part of the capital gain by claiming a reserve (You receive it over time in vesting schedule)
  • Reduce or offset all or a part of the gain by claiming a capital gains deduction (You put it back in the system)
Section 2
If you have Capital Loss, you can deduct it from your capital gains you had in that month, to a balance of zero. If your capital losses are more than your capital gains, you may have a net capital loss and therefore, you will go into default on your credits. This will either results in bankruptcy or you have to repay the loans from your income.
To prevent players from making multiple profiles and risk out everything to push the realities into total chaos, we implemented a cheat software that tracks the IP, MAC address and wallets of users.

Schedule 2 - Total Income

Each player can have 2 separate incomes inside the game:
1- Employment Income, where players do the job that they were assigned in each season of the game; for example, creating new weapons for the army (a series of puzzle mini-games that get harder and harder as players progress)
2- Investment/entrepreneurship income, where players freely create new jobs or contribute to the economy of the reality by creating new assets using the game tools and selling them across metaverse.
The tax brackets for these two types of income are different but they can both be set for a fixed or dynamic amounts.
Schedule 3 - Ventures
Over the course of seasons, we will introduce more ways for you to make money passively. From bots that can trade Fiat money (EUR/USD sounds too good to be true these days) to pooling money and buying real-estate or metaverse lands from other sets and flip them for profit, there are many ventures that will introduced to the game. The cost of it, however, is to either hold the NFTs or stake a certain amount of tokens in the system.
Tax rate of this schedule is set by God himself and depends on his mood.
We will share more information about this as we get closer to the launch day.

Sales Tax

All residents including NPCs pay the consumption tax on goods and services that is levied at each stage of supply chain where value is added, from initial production to the point of sale. The amount of Sales tax the user pays is based on the cost of the product minus any costs of materials in the product that have already been taxed at a previous stage.
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Income Taxes
Sales Tax