---
# System prepended metadata

title: KaliBerger
tags: [Autonomous Markets]

---

![](https://hackmd.io/_uploads/HJH6DLFfp.png)


# KaliBerger

> When DAOs use Harberger Tax to sell goods and services and automagically form goods and services subDAOs with patrons, good things happen!


## What is Harberger Tax & Where Does The Blockchain Fit In?

"Harberger Tax is an economic policy that aims to strike a balance between pure private ownership & total commons ownership in order to increase general welfare of society. It helps ensure that property is more productively utilised by the society, resulting in an increase of overall economic productivity and general welfare of society. It keeps the power of the market, whilst reducing the inefficiencies in how property is currently allocated. At a relative cost to efficiency in investment returns, it reduces the prevalence of monopolies that exclude society from an asset’s wealth generating capabilities."

It works by introducing two concepts to how property ownership works:
- Citizens value their own property and pay tax on that value. A self-assessed tax.
- At any point in time, anyone else can buy the property from you at that price, forcing a sale.

[Source](https://medium.com/@simondlr/what-is-harberger-tax-where-does-the-blockchain-fit-in-1329046922c6) by [@simondlr](https://twitter.com/simondlr)

## Description
KaliBerger is a tool for creatives to freely try out Harberger's tax on their ERC721 NFTs.

Following on Harberger's tax workflow, we, the legal engineers at LexDAO, is building a pattern that allows anyone to sell ERC721 NFTs with variable Harberger's tax rates based on the type of Creative Commons license selected When tax is collected, "BergerTime" is triggered and all tax revenues are automatically pooled into a DAO (specifically, [KaliDAO](https://app.kali.gg/)) consisting exclusively of the creator and patrons.

To illustrate, creators may impose lower tax rates for more permissive licenses (e.g., CC BY) and impose higher tax rates for less permissive licenses (e.g., CC BY-NC). In addition, purchasers may also update the type of CC license for the duration of their ownership if they selected a different CC license from that set by the creators.

Lastly, with support from LexClinic, we hope to work with Creative Commons to draft and develop modified versions of CC licenses to better suit this NFT x Hargerber's tax x CC license pattern.

## Flow


![](https://hackmd.io/_uploads/Syq_0Utfp.png)

Steps:
1. Artist locks ERC721 NFT in a marketplace 
2. Artist defines tax rates for CC licenses 
3. Patrons purchase ERC721 and maintain ownership via Harberger's tax
4. With at least one patron, Marketplace summons a DAO and pools all tax revenues to the DAO for token-weighted participatory budgeting
5. Artist and Patrons together govern the DAO and its funds

## Contributors

[LexDAO](https://twitter.com/lex_dao)
LexClinic
[Kali](https://twitter.com/kali__gg)

If you're interested in building and experimenting with us, feel free to reach out!

