Initial Idea, by @murbard
How much of a problem is it for bakers today? Which jurisdictions consider block rewards as taxable events and how expensive are these taxes?
Note that it’s really a baker problem, delegators can already change the numéraire by converting their tez to ctez.
Germany; at the day it hits your wallet with full income tax (max.42%).
Can’t follow you on the ctez part, but it has risks afaik. You need to trust the SC + your oven can be liquidated.
- It will also heavily incentivize the consensus participation. Who wants to get burned?
UK HMRC classes staking rewards as miscellaneous income (for bakers and delegators): CRYPTO21200 - Cryptoassets for individuals: Income Tax: staking - HMRC internal manual - GOV.UK
I’m curious (and dont know much about ctez), how does the conversion to ctez help in this case?
There is no baking or voting right associated to ctez. When you simply hold ctez, your ctez balance does not change over time, only the value in tez of your ctez increases over time.
Converting will be seen as “trade”, also a taxable event + ctez isn’t really the answer to the memetic advantages → “absolute number of coins remain bounded”.
ah ok, thanks