# \[PROPOSAL\]\[ABANDONED\] Reduce community pool tax to 1% **URL:** \ **Category:** Hub Proposals\ **Created:** [April 15, 2024, 5:42pm UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668 "2024-04-15T17:42:16Z")\ **Posts on this page:** 8\ **Page:** 2
**Author:** ![tknox35](https://avatars.discourse-cdn.com/v4/letter/t/d9b06d/32.png) [@tknox35](https://forum.cosmos.network/u/tknox35)\ **Post date:** [December 18, 2024, 6:30pm UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/21 "2024-12-18T18:30:20Z")
Going to skip signaling it. Put it to a vote and see what the will of the people is. ---
**Author:** ![RoboMcGobo](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/robomcgobo/32/5444_2.png) [@RoboMcGobo](https://forum.cosmos.network/u/RoboMcGobo)\ **Post date:** [December 18, 2024, 11:02pm UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/22 "2024-12-18T23:02:12Z")
> [@Noam](#): > > we could separate the CP into 2 buckets: > > - Grants (e.g. receives max of 5% of the community pool tax) > - Liquidity (receives the rest) I’m not expressing any opinions on whether to reduce the CP tax or what a prudent use of the community pool is. Just wanted to hop in here to say that Stride separates out its community treasury into completely separate module accounts based on purpose: - Community growth - Security - Incentives Each can be accessed with different proposal types. This has helped a ton with budgeting and ensuring that spends remain relevant and targeted. The Hub could feasibly do the same with a liquidity and grants bucket, and allocate whatever proportion of the pool it feels prudent to each. ---
**Author:** ![Govmos](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/govmos/32/5806_2.png) [@Govmos](https://forum.cosmos.network/u/Govmos)\ **Post date:** [December 19, 2024, 9:35am UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/23 "2024-12-19T09:35:28Z")
> [@PaulEdward](#): > > Could you break down how you consider $84M to not be oversized? Thank you for raising this concern Paul. To clarify, the Community Pool (CP) does not hold $84 million but instead contains approximately $200,000 in liquid assets, alongside 7.6 million ATOM and NTRN tokens. This represents around 1.9% of the circulating supply of ~390 million ATOM. At Govmos, we believe this share is insufficient for a network at its current stage of maturity, falling short of the industry standards. We propose targeting a CP size of 5% of the circulating supply and implementing the following allocation structure to ensure both effective use and sustainability: 1. **25% for Public Liquidity Allocations via Hydro** This ensures liquidity is strategically distributed to support the ecosystem’s stability and growth. 2. **50% for a Community Staking Delegation Program** This would fund top-performing validators while generating staking rewards to maintain the CP’s relative share of the supply over time, avoiding slow dilution. 3. **25% for Hub-specific Grants** Governed by the community and managed by a skilled grant review committee, this portion would fund initiatives with direct benefits for the Cosmos Hub. This model is designed to make the CP self-sufficient, using staking rewards and Hydro profits to sustain grant funding without requiring further external contributions through the CP tax. With that framework, we could imagine turning it down to 1% and then eventually down to 0% once the stability has been proven through the test of time. * * * > _We plan to publish a comprehensive proposal regarding the CP allocation strategy early next year, with detailed arguments and data to support our thesis around this 25/50/25 allocation prospect. In the meantime, we welcome any preliminary feedback on this approach and look forward to engaging with the community to refine these ideas further._ * * * Thank you for your attention, Govmos [![pro-delegators-sign](https://canada1.discourse-cdn.com/flex031/uploads/cosmos1/original/2X/3/3d138289b87945115dfe59a6604e139bf36aeb94.png)](https://forum.cosmos.network/t/pro-delegators-validator-profile/12956) ---
**Author:** ![Tagu](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/tagu/32/6956_2.png) [@Tagu](https://forum.cosmos.network/u/Tagu)\ **Post date:** [February 12, 2025, 12:37pm UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/24 "2025-02-12T12:37:55Z")
> [@Govmos](#): > > We plan to publish a comprehensive proposal regarding the CP allocation strategy early next year, with detailed arguments and data to support our thesis around this 25/50/25 allocation prospect. In the meantime, we welcome any preliminary feedback on this approach and look forward to engaging with the community to refine these ideas further. Hello @Govmos ; any updates on the several comprehensive proposals and debate posts planed for early 2025 ? ---
**Author:** ![Govmos](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/govmos/32/5806_2.png) [@Govmos](https://forum.cosmos.network/u/Govmos)\ **Post date:** [February 14, 2025, 2:48pm UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/25 "2025-02-14T14:48:31Z")
Due to recent **policy shifts within the Cosmos ecosystem** , we have decided to **postpone these initiatives**. However, we remain certain that their time will come in the future. The ideas and efforts we previously shared **are still in the pipeline** , but we believe the **current timing is not optimal**. In the meantime, we will **redirect our efforts** toward other forms of contribution. Our commitment to supporting this ecosystem **remains unwavering** , and while governance has been one of the many ways we engaged, it is far from the only one. ---
**Author:** ![vixcontango](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/vixcontango/32/5729_2.png) [@vixcontango](https://forum.cosmos.network/u/vixcontango)\ **Post date:** [February 17, 2025, 7:34pm UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/26 "2025-02-17T19:34:03Z")
Community pool tax should be 0%. Cosmos Hub doesn’t need to finance anybody. The community pool is a den of vipers and thieves and while it sounded like a good idea 5 years ago, it is clear now it hasn’t lived up to its original purpose. There doesn’t need to be any reform. It needs to be shut down. ---
**Author:** ![waqarmmirza](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/waqarmmirza/32/4189_2.png) [@waqarmmirza](https://forum.cosmos.network/u/waqarmmirza)\ **Post date:** [February 24, 2025, 11:34am UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/27 "2025-02-24T11:34:16Z")
It is pleasant to see that we have the same pov regarding something. ---
**Author:** ![PaulEdward](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/pauledward/32/7775_2.png) [@PaulEdward](https://forum.cosmos.network/u/PaulEdward)\ **Post date:** [April 10, 2025, 1:31am UTC](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668/28 "2025-04-10T01:31:01Z")
Going to wrap this thread up and throw support behind this: [https://forum.cosmos.network/t/proposal-draft-reverse-proposal-88-revert-community-pool-tax-rate-to-2/](https://forum.cosmos.network/t/proposal-draft-reverse-proposal-88-revert-community-pool-tax-rate-to-2/) [Previous page](https://forum.cosmos.network/t/proposal-abandoned-reduce-community-pool-tax-to-1/13668.md?page=1)