Eric Wall’s unique consulting NFT is relinquished amidst 300% tax burden

Quick Take

  • Eric Wall’s Orb Land project tokenizes his time and expertise through blockchain technology.
  • But the holder of the NFT that grants access to a personal consulting service from Wall surrendered ownership after facing a burdensome 300% Harberger tax.

In the world of non-fungible tokens, new applications continually test the boundaries of what’s possible. One such experiment is Eric’s Orb, a single NFT that tokenizes a personal consulting service from crypto analyst and investor Eric Wall.

It was released in April at auction, only to now encounter a sudden challenge after its single anonymous holder, who goes by pawle.eth, relinquished ownership after facing a massive 300% annual tax built into the NFT's contract.

Eric Wall launched the Orb as part of his project, Orb Land. The unique NFT granted access to personal consulting services, effectively tokenizing Wall’s time and expertise.

The premise of Orb ownership is simple yet intriguing, as it grants the holder the right to solicit insights and advice from Wall — a sort of lifeline like the one used in the popular game show “Who Wants to Be a Millionaire.”

Orb tax

Despite the attractive proposition, the Orb came with a heavy financial obligation. The holder was required to pay a 25% monthly tax, or an annual tax rate of 300%, using a so-called "Harberger tax" in which the owner of an asset pays on a self-determined value.

There's a catch, though, as the system gives anyone the right to purchase the asset at the self-determined value. It essentially encourages owners to value the asset to keep prospective buyers from forcing a sale.

The novel application to an NFT was meant to ensure market liquidity and provide continuous monetary value to the creator. But the cost can be unsustainable for the holder. 

The numbers

Pawle.eth, the holder who relinquished the Orb, had originally purchased it for 10 ether worth about $18,500. They then set the selling price at 8 ether worth around $14,500, and that all worked out to an annual "tax" obligation of 24 ether ($44,400) or a monthly payment of about $3,700 which had to be sent to Wall.

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