US 2026/0237000 A1 · Blockchain-Based Taxation and Disbursement System

Abstract

A blockchain-based taxation and disbursement system for converting taxpayer payments into standardized blockchain-based tax tokens on a secure, government-operated blockchain network is disclosed. The system includes a plurality of distributed blockchain nodes configured to execute smart contracts comprising a tax token smart contract, a treasury vault smart contract, an appropriation registry, and a disbursement streams smart contract. A payment gateway receives taxpayer payments, triggers token minting, and records transactions immutably across the blockchain. The treasury vault stores tokens for allocation to appropriations and controlled disbursements to approved recipients in accordance with time-based or milestone-based conditions. A compliance module enforces KYC/AML and sanctions checks before disbursement. Vendors can redeem tokens for fiat currency via authorized redemption channels. An investment manager smart contract monitors idle vault balances and invests in whitelisted, low-risk blockchain-based financial instruments, returning yield to the treasury vault.

Claims20

Dependent claims

A method for a blockchain-based taxation and disbursement system for transforming the taxation process, the method comprising the steps of:

providing a taxation process, tax payments, blockchain based tokens, a blockchain network, a taxpayer, a payment gateway and a plurality of vendors;
initiating said tax payments by said taxpayer through said payment gateway, wherein said payment gateway selected from the group consisting of an electronic payment portal, an ACH transfer, a credit/debit card transaction, and a wire transfer;
converting said tax payments into said blockchain based tokens, wherein said blockchain based tokens selected from the group consisting of a crypto token, an Ethereum based Tax Token, and an ERC-20 token;
allocating said blockchain based tokens through on-chain appropriations and allotments, wherein said blockchain network comprises a plurality of blockchain nodes and further wherein each blockchain node of said plurality of blockchain nodes comprises a replicated ledger of the blockchain-based taxation and disbursement system;
executing a contract selected from the group consisting of an ERC-20 token contract, a treasury vault contract, an appropriation registry contract, and a disbursement stream logic contract, wherein each said blockchain node comprises attack mitigation including phishing protection selected from the group consisting of DDoS protection and TLS 1.3 encrypted communication;
and
digitally recording said tax payments to an associated identity of said taxpayer.

4 more elements

Dependencies are inferred from the claim text.

Blockchain-Based Taxation and Disbursement System

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Blockchain-Based Taxation and Disbursement System

Life of this patent

Abstract

Claims20