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ABSTRACT & INTRODUCTIONConventional monetary theory and modern public finance operate on an open-loop, high-friction taxation paradigm. Traditional fiscal regimes rely heavily on income taxes and Value-Added Taxes (VAT)—mechanisms that directly penalize kinetic human labor (Δ Ework) and final consumer trade while incurring massive administrative overhead, compliance latencies, and invasive surveillance. Concurrently, emerging Central Bank Digital Currency (CBDC) proposals seek to digitize monetary flows by binding user identities (IDᵤₛₑᵣ) directly to central ledgers, establishing an authoritarian surveillance apparatus under the guise of modernization.Crucially, the foundational premise of this architecture is not novel. Instead, this framework explicitly borrows core engineering mechanisms proven over decades by the cryptocurrency industry (specifically transaction fee structures, token burn models, supply caps, and staking protocols pioneered by decentralized distributed ledgers such as Bitcoin and Solana). Rather than inventing a brand new financial primitive, we import distributed ledger protocol design into sovereign fiat clearing rails: substituting centralized identity surveillance and high-friction taxation with decentralized, automated network maintenance gas fees.
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Rene Ramdin (2026) studied this question.
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