dCity is a town simulation game that borders on DeFi running a 100k USD reward pool at the time of the writing (
If you do not have a Hive blockchain account, please refer to a post explaining how to claim yours for free.
Want That 300% APR? Not Me.
Taxes are a hot conversation topic around dCity. They seem kind of high at the moment. Well, the game is like 16 moons old and they have never been as high as now. So the topic is hot for a reason.
I am not going to bore you with numbers as it has been done already. While I might find the Tech APR calculation somewhat optimistic, the principal take-away is difficult to challenge as the SIM returns are calculated with current taxes involved.
Psychologically, there is a sound reason for ignoring the math. In real life, 70-80 % taxes are insane. Fortunately, dCity taxes are as close to being taxes as European health insurance is close to being insurance. Miles away (and only if you use the Nordic miles that are close to 10 km long). European health insurance is an obvious tax (payments are compulsory and unrelated to the amount you get if the health event triggers). dCity taxes are an obvious welfare adjustment.
The difference to IRL tax is simple. IRL, you produce utility and someone decides to take a cut. Your dCity NFTs produce nothing. When you purchased the first NFT, you entered a social contract to get SIM tokens for the inconvenience of locking the money in for the game to earn revenue. Much more obvious and straightforward than entering a social contract by being born.
The welfare payment is set to be super generous in terms of the tokens amount and the so-called taxes keep the tokenomics stable. Remember that legend-guy who told everyone to join dCity to get 300 % return a year? Still sounds like a scam? Well, he was the only one to pretend the taxes can be zero forever. Can we have 100 % a year forever? Not all of us, probably.
Hate the social contract you are in? Leave it. Print you own SIM-like token and give it to holders of Brewery NFTs that do not produce any beer (yes, the BEER token you get is not produced, you just got some from the community pot - the pot belonging to this particular community).
Dumbness Tax Is Smart
You can reread the title now. I never claimed the dCity Taxes are dumb. There is one tax that is extremely smart. The Dumbness Tax. Only the dumb pay it. The smart cash it in.
There are 1st Edition cards named Circus and Zoo. Both have +10 income and 20 jobs with the only difference being the popularity of either 8 or 10. They have been going for around 1500 SIM for a while. People are buying for the price. There are regular buyers. Buyers that ignore Restaurant/Weed Dispensary that are just under 1000 SIM for the same income/popularity with the only difference being they only keep 10 people employed. Buyers that ignore TV Station which might not be out of print but it is still giving double the income (+21) at similar popularity/jobs level for almost the same price (1700ish SIM). Does it make any sense? Of course it does! They are the people that want to keep the game going for you and me and happily pay the Dumbness Tax to fuel it. I appreciate.
You might hate the Income Tax, you can decide whether to lobby for or against the War Tax but you have to love the Dumbness Tax. Of the three mentioned, this is the one that was built into the game the deepest. Even if you happen to pay it, you should love it. It keeps your favorite pastime going.
Buy low, sell high. Pay your taxes, collect theirs. Only cry if you paid your way to get the privilege. Only laugh at them if you understand their dCity can have different needs than yours as hinted in the Beach Post
Or just have fun with the game.