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Robber's avatar

Level 7 - Interstellar Autist

Most of the pieces are in place for creating a stablecoin that lets you legally declare 0% in capital gains tax every year. Let me explain.

I came across an idea here to create a coin that people could roll their capital into before declaring their taxes that would allow them to book a loss while not actually losing any money. The original idea was for a stablecoin that would “self destruct” and pop back up after the new tax year so that everyone holding it could loss harvest while in theory not lose anything.

Implementation:

* The stablecoin would be a fork off any algorithmic stable coin, with minor features detailed below

Features:

* Stablecoin remains pegged at $1 through most of the year

* Right before the new tax year the following events occur on the blockchain

** A snapshot of the blockchain is taken (detailing who holds how much)

** The stablecoin is “rebased” to $0

** All tokens are then automatically liquidated at $0 out of holders wallets (realizing the tax loss)

* After the new tax year a completely new clone blockchain (lets call it series B) springs up and new tokens are airdropped to wallet holders that were wiped out according to the previously referenced snapshot (of series A) effectively reimbursing them and restoring the blockchain to what it was before, just on a new chain (theoretically the new chain should achieve the same market cap as the previous chain in the series).

* Rinse repeat the above steps every tax year iterating on the series of new chains that spring up by 1.

So, buy the coin before the new tax year, get liquidated for 100% loss, file taxes, get airdropped your wealth back. Rinse repeat every year and never pay capital gains.

The last part of this problem is how to redesign the airdrop action in this system. The IRS declares airdrops as income so we need a different method to basically achieve the same outcome. This is where I'm hoping the community can come in. Thoughts from the jungle?

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Ruthless Digital's avatar

17 Years Young. Closed first two digital marketing clients with a third on the way.

@ChadMuzlim on twitter by the way. Thankful for yall

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