How to do your Constellation (DAG) taxes with Koinly
Constellation (DAG) is a decentralized network, aiming to build the future of Web3 with feeless transactions. But if you're selling, trading, or staking DAG - your tax office will want to know about it. Don't worry, Koinly makes it easy to do your Constellation crypto taxes. Here's how.
- Sign up to Koinly and choose your country and currency
- Safely connect Koinly to the Constellation blockchain via your public address
- Koinly categorizes DAG transactions into gains, losses, and income
- Download your crypto tax report from Koinly
- File your crypto taxes online or with your crypto tax accountant
How to find your Constellation public address
To connect Constellation to Koinly, you need your public address. The exact steps for this will vary depending on your wallet. You'll find easy to follow steps on how to get your Constellation public address for hundreds of wallets here, but generally speaking, it's as simple as:
- Log in to your wallet
- Select the Constellation (DAG) blockchain
- Copy your public address
Don't forget, in order for Koinly to calculate your crypto taxes correctly you’ll need to add your public address from every wallet you use for Constellation.
How to connect Constellation to Koinly automatically via API
On Koinly
- Sign up or login into Koinly and head to the wallets page
- Select add new wallet in the top right corner
- Search for and select for Constellation (DAG)
- Paste your Constellation public address
- Select import
Important
Remember, if you're using multiple wallets to invest in DAG, you'll need to connect each of these wallets to Koinly in order to calculate your transaction history correctly.
How do I troubleshoot my Constellation integration to Koinly?
If you're having any issues connecting Constellation and Koinly, we're here to help:
- 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 or Reddit
- Contact us by email or live chat
- Got a feature request? Give us feedback on Canny
Calculate your Constellation taxes
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What is Constellation?
Constellation Network is a blockchain platform that uses a specific blockchain technology called "directed acyclic graph" (DAG) to achieve high scalability and low latency.
What is DAG?
DAG is the native cryptocurrency of the Constellation network. It can be used to pay for transaction fees, as well as for other services within the network. DAG stands for directed acyclic graph - a data structure that allows for parallel processing of transactions, making it possible to achieve higher throughput and faster confirmation times than traditional blockchain technologies.
What kind of consensus mechanism does Constellation use?
DAG uses a fairly unique consensus algorithm known as Proof of Reputable Observation, more commonly known as Proof of Meme. This consensus mechanism combines traditional PoS with the reputation of node operators. So node operators will stake a given amount of DAG and receive rewards - like in PoS - but if a node finds a conflict in some data, a conflict resolution mechanism is triggered. The node will then take into account the reputation scores of the nodes who signed the conflicting data in order to resolve the issue.
How can I buy DAG?
You can buy DAG on centralized cryptocurrency exchanges, including KuCoin and Gate.io.
Is the Constellation network safe?
The Constellation network uses advanced cryptographic techniques and is designed to be highly secure. However, no network is completely immune to attacks, so it is important to exercise caution and follow best practices for securing your digital assets.
What is the current price of DAG?
You can find the current price of DAG on price aggregators like CoinMarketCap or CoinGecko. Previously, DAG has had an all-time high of $0.44 and an all-time low of $0.001.
Is DAG a good investment?
The future of Constellation and DAG is promising, as the technology has the potential to revolutionize a wide range of industries. However, the cryptocurrency market is highly volatile, so it is important to do your own research and make informed investment decisions.
Do I have to pay tax on my DAG investments?
Yes. Most tax offices have made it clear crypto is subject to tax. The tax you pay depends on where you live and your transactions, but generally speaking, you'll pay Capital Gains Tax on any gain from selling, swapping or spending DAG and Income Tax on any DAG tokens seen as income - like staking rewards.