# kaal:claim:3402701-026

**Claim.** In a blockchain cryptocurrency, transaction taxes should be set to match the cost of running the network, meaning the cost of incentivizing enough nodes for the desired level of decentralization plus the cost of maintaining the coin's stability.

**Type.** design  **Support.** argued

**Holds when.**

- blockchain cryptocurrencies with node incentive costs

**Source quote.**

> In a blockchain cryptocurrency, transaction taxes should match the cost of running the network, i.e., the cost required to incentivize a sufficient number of nodes to operate in order to maintain the level of decentralization desired

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies - First Order Principles* (2019), 3.2 TRANSACTION TAXES VS. HOLDING TAXES, page 23

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

**Verify.** sha256 of source PDF `72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies%20-%20First%20Order%20Principles.pdf

**Topics.** risk-and-incentives, decentralization, tokenomics

**Keywords.** transaction-taxes, node-incentives, decentralization, stablecoin-design

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