How to do your HyChain taxes with Koinly
HyChain is a gaming-focused blockchain built on Ethereum that makes it easy for developers to build Web3 games and simple for players to join and use in-game assets. But if you have TOPIA transactions, you may have a tax bill. Koinly can help calculate gains, losses, income, and more from your TOPIA transactions and generate tax reports. All you need to do is import your HyChain transaction history. Here's how it works.
FAQs
What is HyChain?
HyChain is an Ethereum Layer-2 rollup built for Web3 gaming, aiming to give developers the tools to create and monetize blockchain-based games while making it easy for players to join. It provides features like APIs for in-game currencies and NFTs, supports smooth payments and asset transfers, and reduces friction by offering user-friendly onboarding with options like email or social logins. By settling on Ethereum, it benefits from its security, while its native token TOPIA powers the ecosystem.
Is HyChain safe?
HyChain benefits from settling to Ethereum and includes some decentralization through its governance model, but it also has notable security trade-offs. Its reliance on a single data availability provider, lack of fraud detection, permissioned roles, and ability to instantly upgrade contracts without user exit options all introduce risks. While it offers some protections, it is less secure and more centralized compared to more mature Ethereum rollups.
Does HyChain provide tax documents?
No, HyChain doesn’t provide tax forms to its users. The most straightforward way to manage your HyChain taxes and generate a crypto tax report is with a platform like Koinly. By adding your HyChain wallet using your public address, Koinly will automatically fetch your transaction history through the API, calculate your gains, losses, and income, and prepare the tax reports you need for filing.
