[DAO:e4ab3e2] Wearables Tax Exposure Tool

Governance
1

by 0xc375b0a133f49dbf3c6418895d6d024be2d8f84a (noh0mie)

Should the following $16,000 grant in the Platform category be approved?

Abstract

With tax filing season beginning in the US, I want to create a tool for the Decentraland community for helping with tax tracking of Wearables transactions. While there are services like Koinly or CoinTracker for helping with NFT tax tracking, it would be better to have an open source tool for determining the cost basis and tax exposure specifically for any Decentraland wearable transactions.

Grant size

16,000 USD in DAI

Project duration

3 months

Beneficiary address

0xc375b0A133F49DbF3C6418895d6d024BE2D8F84a

Email address

wyattlovesgrapes@gmail.com

Description

Tracking your cost basis of Mana and sales of wearables right now is annoying, I want to make that way easier.

Key Benefits

Having a community tool for Wearables tax tracking would have the following benefits:

  1. Easy Wearables Transaction Tracking - Will scrape data from your wallet to specifically track Mana and Wearables transactions. Will have a Google Sheets and Apps Script interface in the Alpha release and become a simple a webapp in the final product
  2. Free To The End User & Open Source - Koinly or CoinTracker would require you to have a premium subscription to handle the average transaction volume a user sees buying wearables in a year, which is lame. Some users like myself prefer to file taxes without this added third party cost or track manually.
  3. Will Output CSV - Compatible with major tax software like Turbo Tax or FreeTaxUSA for filing form 8949 or other requested filing formats for other countries. Will work with multiple countries base currencies for determining tax basis.

Potential Bonus Features

  1. Tracking other currencies - Additional tracking for relevant tokens like Matic, Eth, etc
  2. Additional exchanges for historical prices sources - Tiingo supports like 40+ exchanges so you can accurately calculate your cost basis on the day of a sale. To start I’ll use major ones like Coinbase(GDAX), Kraken, Binance but will add more on request or just because!
  3. Track NFT sales on other chains - Track Eth NFTs or Solana
  4. Track other stuff - Alerts for malicious nfts/token air drops, what do you own the most of(wearble, top creator, etc)

Roadmap and milestones

Plan Outline

With tax season quickly approaching I will be completing the majority of development in sprints throughout the month of February, targeting a working Alpha release which can be shared with initial users.

  1. Jan 29 - Feb 7 | Develop a functional prototype in Google Sheets:

  • Currently I have connected in Apps Script to the PolygonScan Api to pull ERC-721 and ERC-20 Tx info from my wallet and to the Tiingo Api to get historical data to cross reference the cost of mana against. I am able to see corresponding transactions in the console based on the Tx hash of Mana going in/out during a wearable transfer.

  • The next step is to cross reference this data based on the Tx Hash to determine how much Mana was spent during each Tx or categorize the Tx as needing more information such as in the case of a transfer in or out to ones self or someone else. I will sort the transactions into separate categorized sheets and begin to calculate account overview data based on the wallet address

  • The final step of the prototype will be to move variables being assigned within Apps Script into cells of Google Sheets so the end user can easily pass data through like their wallet addresses or timeframes.

  1. Feb 7 - 21 | Develop a UI prototype in Google Sheets:
  • Take all that data and make it pretty, also probably add/sort some more data because I’m sure I’ll think of some things along the way.
  • Add sheets in correct format for popular tax software for CSV output.
  • Develop a Alpha deploy plan where users can duplicate a master Google Sheet and track their wearable transactions.
  1. Feb 21 - 28 | Test and Deploy
  • Stress test everything and deploy the Alpha release by Feb 28 with 48 days till tax day.
  1. Feb 28 - April 30 | Troubleshoot, Update, Migrate
  • Migrate to a js based web app front end (thinking FlutterFlow as its easy and can be self deployed)
  • Provide ongoing support for Alpha users, fix bugs and issues in sheets version
  • Add bonus features

Vote on this proposal on the Decentraland DAO

View this proposal on Snapshot

2

No, the DAO should not funds tax tools for a single country.
Sorry if your country sucks but it’s not the duty of this DAO to pay for it.

2 Likes
3

I do agree taxes suck, but they are certainly a reality in many places besides the US. I understand if you still do not support this, but I do intend to support more than just the US. I stated in my proposal that I would include other countries base currencies and tax reporting requirements for determining cost basis and the transaction output format. If this is your only issue I would still love your support.

4

I’m against funding tools to help fund the mafia that is governments.
Someone else can fund that but this DAO should not.
Taxation is theft.

1 Like
5

Hello @nohomie, your proposal has caught my attention, since I know perfectly well the battles that must be fought to have correct taxation, so any help regarding this seems interesting to me.

On the other hand, I am refraining from voting because although I believe that certain solutions in Decentraland would be appropriate to facilitate taxation for those who have an economic activity here, I would not only limit it to wearables, but also on the issue of grants and tenders, which which can be a serious problem for all those who want to keep accounting records correctly.

I also cannot vote yes, since it does not seem to me to be a proposal that is directly aimed at improving Decentraland, and it could be that many users consider it unnecessary.

Also, thank you very much for offering us this proposal.

6

I actually do like the concept of this idea. I thought about this last type of solution last year, however I just resorted to using Coin Tracker for my wearable basis and the gains/losses if I ever sell them & realize them…(but I’m a wearable hoarder so this rarely happens :slightly_smiling_face: :joy:).

Given how this proposal is going, I think the best step forward is for education content on how users can leverage Cointracker/ledger for a cost basis calcuation of their wearables based on their wearable transactions. Id still encourage you to build this tool for a proof of concept in the future!

will Abstain for now though

7

Wearables Tax Exposure Tool

This proposal is now in status: REJECTED.

Voting Results:

  • Yes 1% 1,258 VP (11 votes)
  • No 91% 13,722,623 VP (34 votes)
  • Abstain 8% 1,320,611 VP (14 votes)