Eric’s Orb is a non-fungible token (NFT) that tokenizes a personal consulting service. It was released in April but now faces a challenge as its anonymous holder relinquished ownership due to a high annual tax built into the NFT’s contract. The Orb grants holders access to personal consulting services provided by Eric Wall, a crypto analyst and investor. However, the holder is required to pay a 25% monthly tax or an annual tax rate of 300%. This tax is based on the self-determined value of the asset and encourages owners to value the asset to prevent forced sales. The high cost proved unsustainable for the holder, leading to the relinquishment of ownership. Despite the financial obligation, the holder actively used the Orb to solicit insights and advice from Wall. Orb Land, the project behind the Orb, is introducing a new feature called “relinquishWithAuction” to promote smoother ownership transitions and maintain market liquidity. The Orb Land team defends the Harberger tax model, stating that it prevents passive hoarding and ensures NFTs are actually used. Wall believes that crypto consultants could sustain themselves by answering one question each week using similar Orbs, and suggests that influential figures in the crypto industry may introduce their own Orbs with customized tax rates.
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