Ripple's CTO, David Schwartz, provided insights into the nature of staking in the cryptocurrency market during a recent discussion. He argued that staking should not be considered taxable as it involves creating new value rather than receiving existing value. Schwartz clarified the difference between staking and receiving dividends from stocks, emphasizing that staking rewards are created by the user themselves. Staking allows token holders to act as validators in a proof-of-stake consensus mechanism, earning additional cryptocurrency as rewards without selling their digital assets.



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