Crypto Staking Acounting
Made Easy
Whether you are staking or operating a node, Cryptoworth simplifies
your staking accounting, tracking and reconciliation process.
Organizations Succeeding with Cryptoworth
Proof-of-Stake Network Support
and generate financial reports effortlessly.
What is Proof-of-Stake?
Proof-of-Stake (PoS) is a consensus mechanism used by certain blockchain networks to achieve distributed consensus. PoS validates transactions and creates new blocks through a process where validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake" or lock up as collateral. From an accounting standpoint, there is ongoing debate about how cryptocurrencies that are staked could be classified, with many considering them as intangible assets. Accountants need to apply consistent and fair valuation methods, possibly considering the fair value at each reporting date.
What are Staking Rewards?
Staking rewards are incentives received by validators for participating in the PoS consensus mechanism. These rewards are typically paid in the form of additional cryptocurrency units. Staking rewards can be considered income at the time they are received. The accounting treatment would require recognizing this income in the financial statements, potentially as other income or operating income, depending on the entity's business model. The receipt of staking rewards has tax implications, generally being treated as income at the fair market value of the cryptocurrency at the time of receipt. The specific tax treatment can vary by jurisdiction. The initial measurement of staking rewards would be at fair value at the time of receipt. Subsequent measurement would depend on the accounting policy for digital assets.
We help by reducing complexity end-to-end
Tracking Rewards & Derivatives
Cryptoworth helps you to track your rewards in near real-time along with other vital data such as liquid staking derivatives. From staking rewards to proxy transactions, we help you track all blockchain transaction events no matter how challenging the operation is.
Staking Transaction Reconciliation
Our crypto tailored accounting engine helps you to track staking rewards across all your nodes in a Proof-of-stake blockchain. We enable blazing fast month ends for our staking customers via our staking automation tools.
Deep Chain Support
Track all your favourite Proof-of-Stake chains in Cryptoworth. Unlock staking acounting capabilities for demanding chains like Ethereum, Polkadot, Solana, Binance Smart Chain, Polygon and many more.
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