CryptoCount is an app and third party API that specializes in reward basis cost income statements. The software is ideal for any ADA reward holder looking to realize a quantity of rewards into fiat currency throughout the existence of Cardano from some time period in the past. What makes CryptoCount unique is its precisely calculated basis cost calculations for each reward realization.
Here is an impact picture: say the year is 2030. You want to sell some block rewards from 2022 because ADA is significantly higher in price and it would be nice to have some fiat currency to spend at the bar. Using CryptoCount, you can select to realize all of your rewards from 2022 and then generate an income statement that displays the cost to create your 2022 rewards (so say about 1.5USD per ADA). The reported income difference between the point of sale value (in 2030) and the basis cost value (from 2022 or prior) is the impact of CryptoCount. This results in tax savings.
In addition to the basis accounting, we also supply to depreciation accounting sets. Our accounting methods are based off academic literature, which you can find a link to in our website here: <https://portaltoblockchain.org>
CryptoCount supports 40 countries and others can be requested and integrated.
The challenge CryptoCount faces is if reward holders report a point-of-sale fiat value of block rewards as income, especially when, the rewards were generated years before the point-of-sale. By assumption of bullish ADA price to fiat in the 21st century, a large price gap exists between the basis cost and point-of-sale cost. CryptoCount solves this problem by giving users an interface to realize a date domain of block rewards, for example all rewards generated in 2021. The basis cost of the 2021 rewards is aggregated and delivered to the user for income reporting. The basis cost of a reward is calculated as the weighted average of true additions (positive transactions that remain immobile for a significant period of staking) prior to the reward being generated. Hosted third party delegation services are our primary target for API integrations (like coinbase, crypto.com, etc.) so that the exchange can use our data in the "Taxes and Reports" sections.
One challenge will be deriving validator block rewards versus delegator block rewards. We have established the infrastructure required to successfully develop the project. Our experience building the project to this point and our significant Cardano Integration planning has given us confidence to deliver the project successfully.
The basis accounting we use is currently being lobbied in US congress by bi-partisan groups of legislatures. We were actually a small part of the lobbying team that brought a civil suit to the U.S. to affirm that basis cost block reward accounting becomes the de-facto block reward accounting method and income reporting method in the 21st century. Economic literature indicates this methodology will dominate in legislative logic throughout the 21st century around the world.