How to file your Merlin Chain taxes with Koinly
Merlin Chain is a Bitcoin Layer 2 solution, designed to improve the network's scalability and security by leveraging ZK-Rollup technology and decentralized oracle networks. But your transactions might come with a tax bill. Koinly can help you calculate your Merlin Chain taxes fast. Here's how.
Follow these steps to sync your Merlin Chain data automatically to Koinly:
- Open your Merlin Chain 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 Merlin Chain 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
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FAQs
What is Merlin Chain?
Merlin Chain is a Layer 2 protocol built on the Bitcoin network, designed to enhance its scalability and efficiency. To achieve these improvements, it uses technologies like decentralized oracle networks, on-chain BTC fraud-proof modules, and zero-knowledge (ZK) rollups. Additionally, Merlin Chain is compatible with the Ethereum Virtual Machine (EVM) and supports Bitcoin-native protocols such as BRC-20, Stamps, BRC-420, Atomicals, Pipe, and Bitmap. The project, launched by Bitmap Tech in early 2024, aims to unlock Bitcoin’s full potential through native innovations rather than mimicking Ethereum's framework.
What are MERL tokens?
MERL tokens are BRC-20 tokens that work as governance tokens for the Merlin Chain.
Do I have to pay tax on my Merlin Chain transactions?
Yes. If you have gains or income from your Merlin Chain transactions, you'll likely have a tax bill. The crypto tax rules vary depending on your location, but you'll usually pay Capital Gains Tax or Income Tax on your transactions. You can learn more in our crypto tax guides.
How do I calculate my Merlin Chain taxes?
The simplest way to calculate your Merlin Chain taxes is with Koinly. All you need to do is add your public address to Koinly. It will automatically import your transaction history to calculate your gains, losses, and income and generate your crypto tax report.
