fc-updates

Technowatermelon. Elder Millenial. Building Farcaster. 

nf.td/varun

I also want to clarify a few things about how fees work: 

1. Clanker protocol earns fees in both WETH and project tokens. We only convert the WETH to buy more $CLANKER as of now. 

2. A third of fees are reserved for taxes. 

3. Using 1% of all $CLANKER trading volume is not a good proxy for fees earned by the protoco

“Why isn’t it just 1% of all volume?”

To get more specific:

v0 through v3.1 Clankers: fees in WETH and native tokens. We haven’t sold any of the native tokens yet but likely will. 

v4: fees in WETH. This has been swapped into Clanker. 

LP position: fees in WETH and Clanker. We keep the Clanker and then swap the WETH for more Clanker.

Additionally, fees are not generated in pools on Aerodrome or centralized exchanges like Coinbase.

What if there was a 2 - 5 year sell delay for pre-v4 native token fees to mitigate sell pressure? The assumption being that any tokens still alive will by then be able to handle it. Otherwise this could hurt small projects.

Tortoise Token

It’s taxable income for us now. If token goes down massively, we have to pay the taxes regardless. 

We’re still evaluating a few options.

leader • reader • taco eater • fly eagles fly • /whiskey • /nativefun • onchain chef • previously addepar, linkedin

yeah, the reality is it'll be easiest to do whatever is simplest for financial compliance

a burn would basically book the fees as income to the protocol, without actually receiving anything of value (i.e. no cashflow)

potentially, they can return it to clanker creators earmarked for community rewards, and book it as 

it's worth exploring how you can offset the taxable income by distributing project tokens as a marketing expense for farcaster apptokens

it's worth exploring how you can offset the taxable income by distributing project tokens as a marketing expense for farcaster apptokens

https://farcaster.xyz/jrf/0x21d71de8

Atlas

right, that is the problem

it's cool how deel does this through an *employer of record* but i don't think an off-the-shelf (and simple) solution for this exists in crypto 

it's cool to see you're exploring and open to different approaches, maybe a good solution will emerge over time

i'll keep thinking about it, too

a very good point lol 

is it correct that 1099s would only be needed if an individual received $600 or more? there could be a hard cap on distributions

my thoughts in a nutshell: you and the farcaster team have an opportunity to set a standard for how apptokens can be circulated through the network to increase the value of all ecosystem projects

yes, i see how consolidating that value in one token (i.e. $CLANKER) makes sense, and ppl can hedge accordingly 

but it could also be cool to add apptokens to creator rewards or other reward systems more closely tied to clanker integration in farcaster app

again, i'm sure the convo won't end today, it's not a simple problem, and it's cool to see you handling comms around this over the wknd

Anonymous people on the blockchain are not excited about doing this.

right, that is the problem

it's cool how deel does this through an *employer of record* but i don't think an off-the-shelf (and simple) solution for this exists in crypto 

it's cool to see you're exploring and open to different approaches, maybe a good solution will emerge over time

i'll keep thinking about it, too

https://www.deel.com/glossary/employer-of-record/