I mentioned India because you have that on your steemit profile. Steemhost is just twisted enough to reflect the mind that it came from. Who ever that is must be very clever and an impeccable sense of humour.

When I created the working document that I submitted to my design team, I titled it Project Cerberus to reflect it was a dog with three mouths to feed. It was initially a simple idea of selling advertising space to appear on a website.

1 - The first layer of complexity revolves around the idea of feeding the three heads. Facebook is a dog with a greedy mouth ... it keeps all the earnings from advertising for its own use. At least Youtube shares some of the advertising revenue with the second head ... the people who create content and place it on their site. Steemhost treats the third head (the visitors) the same as the content providers and itself. Each share in 1/3 of the revenue.

2 - The second layer of complexity is that steemhost absorbs steem like a sponge. Advertisements are paid for in steem. Rewards are sent out in the form of steem delegation. Since the beneficiaries do not receive steem, they are encouraged to continue to write good content. The fact that they are not paid in steem or steem dollars means that the they cannot spend the currency which would have a downward pressure on its price.

3 - In addition to having advertising rewards, once the steem power of @steemhost01 reaches a certain level, its votes will become valuable. At less than 40 sp, its vote is effectively 0. I have already started adding hosts to the autovoting routine so they will receive additional earnings based on the authoring/curation process.

4 - The next level that is slated to run is to take the steem dollars generated by the curation in step 3 and distribute it. I believe that it would be similar to a dividend (in concept). Before I do this step, I need to come up with a mechanism which will cause the least harm for the participants.

What type of law do you practice? In Canada once cryptocurrencies are transferred to the real world, they are treated as capital gains (less than 10 percent tax). Also I have a couple of companies here in Canada so I can mitigate my personal exposure by declaring it as income in those entities.

I know nothing about the tax implications in other countries. Steem power delegation shouldn't be taxable because it is similar to water. Letting you irrigate your garden with my water should not be a taxable benefit ... but when your carrots are grown ... they will attract tax men or rabbits. However if I pay you steem dollars as a dividend or as a paycheque it would need to be declared (?).

This is all premature since @steemhost01 has only earned 0.076 steem dollars in a month but potentially in a year ... it could be double that.

Visit me on https://steemhost.com/@dwarrilow2002