I mistakenly thought I could treat the airdrop as zero-cost-basis and report any appreciation as capital gains when sold. This was true when airdrops were illiquid for months. Now, in the US, you owe taxes on market price at the time of claim, even if it later goes to zero.
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Thanks to for correcting me here. I was extrapolating incorrectly from whatever the hell pre-DeFi crypto was. Web2.5?
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Milestone: did my first DeFi token swap, trading a quarter of my ENS for ETH to hedge against potential tax losses in case it goes to zero. Planning to hang in to the rest. Yet another case of Web3 sucking me in to do something earlier and more consequentially than I planned to.
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This might be a characteristic of the medium. It’s really hard to do small experiments. I mean you can’t buy a tiny fraction of a domain name. It’s 0/1. And that has… consequences.
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I *want* to stay on the tech+culture side of Web3 and ignore the speculative frenzy, but it’s tough. You may not be interested in DeFi, but DeFi is interested in you. The 800lb DeFi gorilla black hole is the King Kong of bored apes.
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Yes, this is almost certainly true. Carlota Perez installation phase going on. Overbuilding of capacity, crash, then everything comes true in deployment phase, 10 years later than the frenzy people thought.
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Replying to @vgr
I think this bubble will be similar to dot com: the market will very much get ahead of itself, but the long-term thesis is correct. Take advantage of the current ride, get out when it’s absolutely insane, then stay interested during the bear market for long-term investments.
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For all following along, people my age have lived through 3-4 of these cycles. If this is your first time PLEASE be careful.
Amara’s Law: We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.
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If you need help, talk to someone 40+ in tech. I haven’t seen a scene like this since 2000, when I joined a Web1 startup briefly, mere months before the dot com crash. Hedging is not hard. What’s hard is taking the downside scenario seriously enough at the peak.
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Anyhoo. I now have some 101 experience of every major user-side piece of the Web3 puzzle except DAOs 👀. Gotta pace myself. Been neglecting non-Web3 stuff for 10 days. I think I’ll budget 15% of bandwidth to this through 2022. Regardless of boom or bust.
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Replying to
might be one worth exploring for you. I’ve only been around the edges but lots of interesting things happening
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Yeah, met up and chatted with in Austin in August. One of the precedents we’re looking at carefully as we move towards DAOifying the yak collective.
Now that I’m back in the US hopefully will lean into both in the upcoming year.
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I’d love to help you think through the DAOification plan!
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Not sure what your calendar looks like but Cabin is doing a strategy retreat first week of December - we could catch up right after - do a Cabin-Yak Fireside Chat
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+1 to collab with the team, these folks are some of the most talented in DAOs right now
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