Legacy whitepaper archive
2.0% Progressive Tax / System 0

KoruDAO Technical Whitepaper

This is the early KoruDAO whitepaper. It framed the project as a decentralized simulation for automated wealth redistribution. The 2% story, the ledger subnet, and the System 0 account are all restored here.

Snapshot date: 2026-03-17

Intro

KoruDAO Whitepaper

A technical framework for simulating decentralized, automated wealth redistribution across digital networks.

Vision

Vision & Paradigm

Current economic networks inherently centralize wealth due to structural advantages held by early participants and large capital aggregators. The KoruDAO project is an experimental software simulation that attempts to counteract "winner-takes-all" outcomes through programmed network mechanics.

By enforcing a set of automated protocols at the database layer, the network naturally buffers wealth disparities, creating a fluid cycle of continuous redistribution while preserving the incentive to transact.

Simulation Notice: KoruDAO is an isolated simulation running on local infrastructure. It relies on internal accounting (Ledger Test Mode) rather than a live blockchain consensus protocol for its core execution loop.
Tax Engine

Progressive Tax System

Instead of relying on voluntary contributions or centralized tax enforcement, KoruDAO embeds taxation directly into the transaction primitive.

Whenever a peer-to-peer transfer is initiated, the Ledger Controller invokes the internal Tax Engine. The engine assesses the transferred amount and applies a percentage-based deduction.

private function calculateTax(int $amountMinor): int
{
    if (!$this->boolEnv('FEATURE_TAX_ENGINE', true)) {
        return 0;
    }
    // Simulation dictates a flat 2.0% redistribution tax.
    return (int) floor($amountMinor * 0.02);
}

Simulation dictates a flat 2.0% redistribution tax.

Ledger

SQLite Ledger Subnet

To ensure transactional integrity without introducing the overhead of a full EVM for thousands of micro-transactions, KoruDAO leverages a dual-database pattern.

  • Settlement layer: Handles high-throughput balance adjustments (Table: tm_transaction_entries) running locally on a dedicated SQLite instance.
  • Identity layer: Standard user models, authentication, and social profiles remain on the central MySQL database.
System 0

System 0 Account

The core mechanism that makes the Tax Engine viable is the System Account (UID: 0). Rather than burning the taxed tokens, the Ledger routes all deducted fees to the System User.

From the System account, accumulated tokens can be procedurally granted back to active participants in lower brackets through periodic distribution tasks, closing the loop of wealth redistribution.

This is the 2% page

The legacy whitepaper is back as a standalone archive.

It does not replace the current contribute / manifesto flow. It simply restores the historical paper so you can compare the old theory directly.