What about both? Redirecting some of the new steem and receiving donations to reward bounties for development. The foundation could make investments in prospective steem businesses with terms to send a portion of their profits back to the development foundation.
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One of the two proposals is for funding from both sources(existing inflation + donations). The other proposal is to only have funding from donations. Accepting funds from donations isn't controversial, so both proposals include that option.
I am still reading comment here, and haven't yet considered all I need to. I would like to know how you intend to specify budget items, whether you intend to use the vote to seek implementation of funding mechanisms for the foreseeable future, or to implement mechanisms that evolve over time as information, needs, and the community changes.
I am presently fairly certain that initially only donations are going to be acceptable, until we're able to discuss and specify budgets, accountability, and deliverables. However, I am vacillating on taxing witness funding, and find the failure to include a tax on stake unacceptable.
Accounts that neither create nor curate aren't going to fund either proposed mechanism, and yet the greater stake held in an account the greater the benefit to that account of whatever is funded. I am coming to think that funding from inflation is not the right mechanism at all, but directly taxing stake is. Doing so motivates stakeholders to directly act to ensure funds are spent wisely, and reflects proportionally the benefits accorded by funding to those doing the funding. Further, it does not reduce incentive to create content, nor curate it. Lastly, accounts that neither create, witness, nor curate, aren't increased in financial power relative to those that do, and unless stake is taxed directly that will be the undeniable result.
Please consider a direct tax on stake as a funding mechanism as an additional option to be discussed, and voted in the future.