# CIP: Prevent auto-claiming of staking rewards

**URL:** <https://forum.celestia.org/t/cip-prevent-auto-claiming-of-staking-rewards/1905>\
**Category:** Celestia Improvement Proposals (CIPs)\
**Created:** [February 10, 2025, 4:49pm UTC](https://forum.celestia.org/t/cip-prevent-auto-claiming-of-staking-rewards/1905 "2025-02-10T16:49:01Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![tac0turtle](https://forum.celestia.org/user_avatar/forum.celestia.org/tac0turtle/32/1262_2.png) [@tac0turtle](https://forum.celestia.org/u/tac0turtle)\
**Post date:** [February 10, 2025, 4:49pm UTC](https://forum.celestia.org/t/cip-prevent-auto-claiming-of-staking-rewards/1905/1 "2025-02-10T16:49:02Z")

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This forum is mean to facilitate a discussion around the proposed CIP ([https://github.com/celestiaorg/CIPs/pull/251](https://github.com/celestiaorg/CIPs/pull/251))

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**Author:** ![musalbas](https://forum.celestia.org/user_avatar/forum.celestia.org/musalbas/32/11_2.png) [@musalbas](https://forum.celestia.org/u/musalbas)\
**Post date:** [February 11, 2025, 9:53am UTC](https://forum.celestia.org/t/cip-prevent-auto-claiming-of-staking-rewards/1905/2 "2025-02-11T09:53:28Z")

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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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**Author:** ![tac0turtle](https://forum.celestia.org/user_avatar/forum.celestia.org/tac0turtle/32/1262_2.png) [@tac0turtle](https://forum.celestia.org/u/tac0turtle)\
**Post date:** [February 11, 2025, 2:18pm UTC](https://forum.celestia.org/t/cip-prevent-auto-claiming-of-staking-rewards/1905/3 "2025-02-11T14:18:01Z")

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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.