This forum is mean to facilitate a discussion around the proposed CIP (https://github.com/celestiaorg/CIPs/pull/251)
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In terms of selling rewards for tax reasons, I’m not sure it really makes a big difference because:
- This doesn’t prevent the taxable event, it just delays it, until the holder has a bigger and bigger taxable event when they claim and may at some point be forced to capitulate (as they have to either claim all the reward or none of it).
- Long-term, jurisdictions may not take the view that the taxable event is only on claiming, but rather on accrual (which I believe is already the case in the US).
That being said, if this is a simple change to implement that doesn’t introduce too much complexity, I think it’s probably worth it for UX reasons. Can you comment on how complex this would be to implement?
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That is true, it only delays it, but currently if you delegate more to a validator you are already delegating to, then you inadvertently triggered a taxable event. Its arguable what a taxable event is in crypto as currently taxes without guidance is a guess at best defined by fear.
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