How to do your Kaspa taxes with Koinly
Kaspa (KAS) employs a proof-of-work consensus model and integrates a blockDAG (Block Directed Acyclic Graph) framework. This design enables the simultaneous existence of multiple blocks, mitigating the challenge of high orphan rates commonly encountered in traditional blockchain systems. But if you're transacting with KAS, you might have a tax bill. Fortunately, Koinly can help, here's how.
Follow these steps to sync your Kaspa (KAS) data automatically to Koinly:
- Open your Kaspa (KAS) wallet app
- Locate and copy your public address or key
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Kaspa (KAS) in the list
- Select API > Paste the public address/key you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
- Head over to our help center
- Hit up our discussion boards - we might have already answered your question
- Ask us on social media - we're on Twitter and Reddit
- Contact us on email or live chat
- Got a feature request? Give us feedback on Canny
FAQs
What is Kaspa?
Kaspa is a blockchain platform using proof-of-work and blockDAG architecture. It allows multiple blocks to exist simultaneously, reducing the blockchain's orphan rate. Inspired by Bitcoin, it retains PoW mining, a deflationary model, and decentralized governance. Kaspa combines PoW security with fast block processing, making it a promising player for dApps.
How does Kaspa work?
Kaspa operates using the GHOSTDAG protocol, allowing parallel blocks to coexist and reach consensus. This blockDAG approach ensures secure operation and high block rates. Currently achieving one block per second, Kaspa aims for even faster rates of 10 or 100 blocks per second, showcasing its scalability. It offers features like reachability, block data pruning, Simple Payment Verification (SPV) proofs, and subnetwork support for layer 2 solutions. Kaspa's unique monetary policy involves a geometric emission reduction over time inspired by music's 12-note scale, decreasing block rewards annually in line with musical frequencies.
What is KAS?
KAS is the native crypto of the Kaspa network. This means you can use it to pay network fees, as well as buy, sell, and trade KAS tokens like any other cryptocurrency.
Do I have to pay tax on my Kaspa transactions?
Yes. Crypto - including KAS - is taxable. The precise tax varies on where you live, but you'll generally pay Capital Gains Tax or Income Tax on your crypto depending on the specific transaction. Learn more in our crypto tax guides.
How do I calculate my Kaspa taxes?
The simplest way to do your Kaspa taxes is with a crypto tax calculator like Koinly. Just add your Kaspa public address into Koinly and Koinly will automatically import your transaction history so it can calculate your gains, losses, income, and more.
