Tax on .ETH domain names?

Domain Name renewals is the most tiresome task for domain investors. It takes a good chunk of your clock and your wallet as well. However, what if there was a tax on domain names?

Yes, you heard that right. And this is not some obscure registry thinking about such actions. Its the co-founder of ETH. Vitalik Buterin recently proposed having a tax on .eth domain names.

He propounded that a 3% annual tax be levied on a domain name on the basis of the highest bid on it. As for example an .eth domain name with a bid of $10,000, would have to pay $300 annually as tax.

There are multiple reasons both for and against this proposal. In its support, it was claimed that it would make sure that the domain name gets transferred to the one who has the most use of it. People would release high priced but non-functioning domain names, if there was regular taxation on it. 

The proceeds from these taxation would contribute to ENS’ Decentralised Autonomous Organization (DAO). This also aims at tackling the issue of concentrated investments in Ethereum.

However, this is going to be extremely unfair to the domain investors who have already invested in Ethereum names. They would have to pay an additional price to maintain domain names that was already muzzled with renewal processes.

What are your views on this proposed Tax on .eth domain names? Answer us in the comments.


Join the Discussion

Discover more from Domain Magazine

Subscribe now to keep reading and get access to the full archive.

Continue reading

Verified by ExactMetrics