The current situation
The current flag of Taiwan is a historical oddity. It is inherited from the Republic of China, which ruled mainland China over seventy years ago but now rules only the island of Taiwan and is known as such. Moreover, it is based on the flag of a single political party, the Kuomintang (Chinese Nationalist Party). This may have made sense when Taiwan was a one-party state, but not when Taiwan is now a multi-party democracy in which the Kuomintang is just one of many political parties.
The nation has gradually trended towards a de facto, local, independent Taiwanese identity, especially the younger generation for whom this is the only reality they have known. For example, a poll by National Chengchi University shows that the majority of the population now identify as Taiwanese over Chinese, and this is constantly rising.
In light of these developments, some have proposed flags for Taiwan in its own right, rather than Taiwan as the Republic of China. However, those designs have significant flaws and none are especially popular.
Therefore, here is my proposal.
Note: My choice of designs do not reflect my political opinions.