I do think this is wishful thinking as a lot of the people wouldn't want to part with any of their possessions if they have a choice not to.

I think people would be willing to give voluntarily if they receive a service they need instead (as people are now paying e.g. for insurance, or property protection to certain commercial entities). I imagine that a decentralized goverment would be comprised of different service providers and people would voluntarily pay regular fees (perhaps they could still be called "taxes") in exchange for said services. The government would be like a hub for those providers and could also take a cut (or it could be given by the system to the delegates supporting the system, as in steemit).

If you don't have legislation and a body to enforce it, there is no good way to resolve ownership disputes and your possessions could be still taken away from you with the threat of violence by more powerful individuals.

What makes the difference between legislation and protection racket then?