When you first buy token, you’re issued with two keys: public and private. The Harmony token has multiple functions within the protocol, including staking for participation in the proof-of-stake consensus, payment for transaction fees and storage fees, and voting for on-chain governance. Additionally, the implementation of zero-knowledge proofs will allow Harmony to become a data sharing platform, overcoming the challenges of mutual distrust among market participants. Harmony uses blockchain technology to align the incentives of different stakeholders and enable the creation of open marketplaces for fungible and non-fungible tokens and assets. Harmony's protocol, known for its scalability and high-throughput, is powered by the Harmony token, which serves as a means of payment and participation in various aspects of the protocol, including staking, transaction fees, voting, and governance. To utilize the network, users pay a small transaction fee in Harmony tokens. This can help you identify and resolve any issues in no time at all.Harmony's decentralized network relies on its native protocol token, Harmony ONE, to incentivize and reward developers, validators/stakers, investors, and community members who contribute to the network's development, security, and governance. It's really helpful to use our Getting Started Guide before reviewing your transactions. Tag as swap: If a coin has exchanged its symbol or name, use the swap tag, as this is tax free.Koinly calculates all this on your behalf, so there's only one exchange tag you may need. Trades are sometimes taxed ( depending on where you live), buys are never taxed and sells are always taxed. Trading crypto for crypto, buying crypto with fiat and selling crypto for fiat are exchanges. In most countries, rewards are subject to Income Tax. Tag as reward: This tag can be used to mark any deposits you receive as a reward, for example staking rewards.Received from pool: Use this tag to mark the capital you originally sent to a pool, not any rewards from it.Tag as mining: Most countries treat mining as a form of income and apply Income Tax.Tag as fork: Just like airdrops, new coins from a fork may be subject to Income Tax.Tag as income: Crypto income is subject to Income Tax, not Capital Gains Tax - just like any other salary.Many countries apply Income Tax to interest. Tag as loan interest: If you're loaning crypto and receiving interest, use this tag.Tag as airdrop: Most countries see airdrops as a bonus and apply Income Tax.Check the labels to make sure the right tax is applied. They can be subject to Income Tax or Capital Gains Tax, depending on your location and the type of deposit. Koinly sees deposits as a purchase at market price or an investment. Tag as lost: If you have crypto stolen, in many countries you can claim this as a loss.ĭeposits refer to receiving new coins.Tag as gift: Gifting crypto is a non-taxable event in many countries, so make sure to tag these, but only if capital asset gifts are tax-free in your country.It lets Koinly know you still hold these assets. Sent to pool: Sending coins to a pool? Mark these as sent to pool.
#Staking harmony one free#
But, some withdrawals are tax free and you should label these using withdrawal tags. Koinly sees these as a disposal of an asset, which makes the transaction subject to Capital Gains Tax in most countries. Withdrawals refer to sending coins, tokens and funds. It's always good to double check your transactions and use any of the following labels. Koinly will normally do this automatically, but there are some instances when transactions like rewards or mining income aren't marked in the imported data. Review the labels of your transactionsįinally, review the labels on your transactions. For example, large withdrawals or deposits that are actually transfers between wallets is an easy fix. You can filter by the type of transaction as well as by the amount to identify and amend any transactions that you believe to be incorrect. Now, head to your transactions page in Koinly and take a little time to ensure they're all correct. This lets Koinly identify which transactions are transfers and which are deposits or withdrawals.
Start by making sure all your wallets and exchange accounts are synced with Koinly. There are a few simple steps you can follow to make sure your tax report is accurate: Sync all wallets, exchanges and blockchains
#Staking harmony one software#
Koinly’s crypto tax software is smart, but incorrectly imported data can cause issues.Ĭhecking your transactions and correcting any inaccuracies lets Koinly calculate and generate the most accurate tax reports for you. We recommend checking through your imported transactions on Koinly to see if everything is imported, and that your transactions are correctly labelled.
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