$0.50999 17.73%
ALGO · 1w

Algorand (ALGO) Rewards and Capital Gains

At first when I saw that ALGO is paying 6% APR on my holding, I thought that's great and so much more than I get get in an interest-bearing account. Now I see that the pennies that I earn every day are used to purchase ALGO, very similar to how stocks re-invest dividends. Those small purchases show up in my ALGO Wallet each day. (This is on Coinbase at least.) I'm assuming that I will have to pay taxes on the award income as if it were interest/dividend. And each daily purchase of ALGO will result in a new lot when it's time to sell and compute capitol gains. Each year will produce 365 new taxable lots. Having to compute and report each of those sales as a separate lot on the tax forms will be a nightmare! At least stocks only reinvest four times a year which is a lot more manageable. Am I missing something here or did the designers of this cryptocurrency create a way for all their purchasers to become tax preparation slaves?
Go to self.AlgorandOfficial
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