How to do your Degen Chain taxes with Koinly
Degen Chain is a Layer-3 blockchain built on Arbitrum Orbit for the DEGEN meme token. But if you have DEGEN transactions, you may have a tax bill. Koinly can help calculate your DEGEN taxes. All you need to do is import your transaction data. Here's how.
Follow these steps to sync your Degen data automatically to Koinly:
- Open your Degen 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 Degen 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
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FAQs
What is Degen Chain?
Degen Chain is a community-driven Layer-3 blockchain launched in March 2024 for the DEGEN meme token ecosystem, built on Arbitrum Orbit with Base as its settlement layer and AnyTrust for data availability. Using DEGEN as its native gas token, it offers low-cost, scalable infrastructure for DeFi, GameFi, NFTs, and social tipping, with key apps like DegenSwap, NFTdegen, and Degen Names. Its tokenomics emphasize heavy community distribution through airdrops and incentives, and it has seen rapid adoption with high on-chain activity and low transaction fees.
Is Degen Chain safe?
Degen Chain is built on Arbitrum Orbit with Base settlement and AnyTrust data availability, giving it a foundation tied to Ethereum’s security model, but it carries elevated risks due to its memecoin-focused ecosystem, which has seen thousands of speculative or scam tokens. Its safety also depends on the volatile DEGEN token used for gas, and some experts warn that stacking Layer-3s on Layer-2s could weaken Ethereum’s security guarantees. While technically sound at the base layer, users should exercise caution, vet projects carefully, and use protective practices like burner wallets when interacting on the network.
Does Degen Chain provide tax documents?
No, Degen Chain doesn't issue tax documents to its users. However, you can use a crypto tax calculator like Koinly to get the tax documents you need. Just add your Degen Chain public address, and Koinly will import your transaction history and calculate your gains, losses, income, and more, before generating your tax documents.
