Private View Key - A unique feature for SAFEX

Agree with Dan here. In case of SFX payouts it seems to be a pretty clear case. The SFX only appear in your wallet after you unlock. You don’t even know the amount you will receive before you do this. So - in my opinion - if I only unlock only once a year, I have only one taxable event in this year. This makes it way easer to record and tax than consistent income streams like some PoS/Masternode coins, where you receive coins in very little time intervals.

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@cryptooli

Little bit of a deviation of the topic we were discussing, but this has been decided already? I was under the impression that unlocking would be an automated interval to prevent ghost accounts accumulating SFX. Claiming dividends would be either an automated or manual process, but without unlocking the tokens. Did I miss something?

Back to the tax:

Still a lot of guessing.

@dandabek with your permission:
If you guys and girls can come come up with a list of tax questions, I will approach this guy: https://www.upwork.com/fl/meszaroslaw and forward to him. I think a two hour session should be enough. Agreed on person and time limit? Remember that we aren’t going to address the country specific taxation procedures but safex specific taxation in general.

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The last proposal was:
manual lock -> “reserving/collecting” SFX in the background -> “reserving/collecting” of SFX ends after specific number of blocks -> manual unlock -> payout of SFX within the unlock transaction (I hope I summarized this correctly).

So, you still have to unlock your SFT yourself since you are the only one in control of your keys. Only in the background the system decides when your SFX collection has to stop. Also imagine you only had enough SFX in your wallet to pay for the SFT lock transaction but not enough SFX to pay for the unlock transaction. Technically, the system would not be able to unlock for you. You would first have to send another SFX to it to cover the unlock tx fee.

Let’s say your SFX collection is active from block 1000-5000. You unlock at block 9000. You still receive all SFX from block 1000-5000. Since you are not the owner of the SFX in block 1000-5000 you cannot be taxed for it until block 9000 in my opinion.

I like your idea of having a discussion with the tax consultant. Maybe we should wait until all processes of how the transactions will work are decided on? Dan is probably himself in the process of figuring out what a “SFX payout” legally is or he has done it already and will let us know?

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Thanks for elaborating. All is clear now!

I do think you are right, but lets consider this is a ‘grey area’, which we can address to a tax specialist. (I have been educated in going from ‘thinking you know to knowing you are right by involving the right personnel/persons’)

Added:
I’m a bit lost in translation, I guess. If one would unlock at block 9000, block 1000-9000 would be the time period over which the dividends would be paid out - unless you meant ‘claim’ rather than ‘unlock’. ‘Unlock’ to me means taking the tokens out of dividend-active-modus.

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In the current approach unlock = claim (As far as I understood ‘claim only’ would be basically a combination of unlock and relock). The 5000 block number was the example where collecting ends for ghosts (e.g. after one year). So when you unlock/claim after this block number you will only receive SFX until this specific block. In my example the wallet is seen as a ghost wallet after block 5000 so so incentives will be received for blocks 5000 to 9000.

all this tax stuff is so complicated, it might be simpler to work to abolish income and capital gains taxes for individuals and small businesses :slight_smile:

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