Starknet Cryptocurrency "contributions"

I have followed all steps above (from @Atemu) and got to the point where the money is in kraken (I just created a kraken account). I’m now trying to withdraw the money to my EUR account:

Invalid amount. It may be due to a temporary withdrawal hold or open margin position.

it’s not quite clear why this isn’t working.

You should reach them to ask for a real answer :+1:

You must first convert the STRK to EUR, and then you’ll be able to do the wire transfer.

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I followed @drupol’s suggestion and managed to do a wire transfer. My bank confirmed it. I can’t believe this wasn’t spam after all. Thank you everyone for your guidance.

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Just want to share my two cents if you’re going to do this in Germany.

(This is not tax advise or financial advise. Just my personal consideration)

Because this airdrop has pre-allocated an exact amount of funds in your name and you are getting the funds in exchange for personal data just claiming the tokens is a taxable event (Source: Tax guidance by the finance ministry, 8. Income tax treatment of units of virtual currency and other tokens received from
airdrops
)

This means you’ll have to pay income tax on the fair market value of the day you claimed the funds by reporting it as "Other income from rendering of service (sonstige Einkünfte aus Leistungen) under
section 22 no 3 of the Income Tax Act ".

You also need to declare the difference between the price when you claimed them and when you sold them as income tax.

If you hold the tokens for a year no income tax is due on the profits. But still due on the initial airdrop.

Given the volatility of cryptocurrencies this is why I decided to cash out to euros immediately as assuming you’re in the highest tax bracket (44%) this makes you responsible for footing a 1500 euro tax bill even if you don’t sell it and hold it.

My point is make sure you realise the tax obligations you have before participation in the airdrop and make sure you have enough liquidity in tax reporting season to pay that bill.

If you are in Germany in happy to help you with linking to some further resources or recommending a tax advisor. Just drop me a line on matrix

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Thanks a bunch for the link, that is very helpful.

German version: https://www.bundesfinanzministerium.de/Content/DE/Pressemitteilungen/Finanzpolitik/2022/05/2022-05-09-einzelfragen-zur-ertragsteuerrechtlichen-behandlung-von-virtuellen-waehrungen-und-von-sonstigen-token-bmf-schreiben.pdf?__blob=publicationFile&v=3

Disclaimer: I am not a qualified financial or tax advisor. This is just my personal interpretation and discussion.

I don’t think this case is clear cut w.r.t. falling under income tax though. The two closest points relevant to our case (claiming tokens for non-commercial contributions) are 70 and 74. Neither of them fully apply here though.

70:

The receipt of additional units of a virtual currency or other tokens may result in other income
from rendering of service within the meaning of section 22 no 3 of the Income Tax Act. This
is the case – despite the marketing nature of many airdrops – if interested parties are required
to render a service (see paragraph 46), and hence in particular in the case of active
engagement such as referring to the airdrop or the project initiator in social media posts.
Taxpayers also engage in rendering of service within the meaning of section 22 no 3 of the
Income Tax Act if they upload images, photos or videos of their own to a platform and
receive units of virtual currency or other tokens in return, even if ownership of the images,
photos or videos remains with the taxpayer

If all you did is claim your tokens, there was no requirement on you to render a service or otherwise produce engagement. (The engagement we may have ultimately produced (including this thread) is “organic” and is not directly compensated.)

There is no expectation that you’d render some service in the future either. Quite the opposite; I would advocate anyone to not interact with this random shitcoin #45812 in any other way than to claim these tokens.
All the work I did to qualify was not done with the intent of qualifying for some shitcoin airdrop but for the benefit if Nixpkgs. I did not know about this shitcoin’s existence in the period that was used for qualifying.

74:

If there is no economic connection between the allocation of units of virtual currency or other
tokens and a rendering of service, then it may constitute a gift for which the tax rules on gifts
apply.

Gifts from strangers are tax free up to 20 000€, so this would be the desirable case as it’d mean not a single cent in taxes.

There was no direct relationship or compensation for the work we did or even any sort of expectation to be compensated when we did the work that qualified us.
However, it was still our work that qualified us which I guess could be seen as the rendering of a service? It’d also certainly be disingenuous to say that there was no “economic connection” at all as the rewards did scale with the number of our “contributions”. It’s just that we didn’t do these contributions for the purpose of receiving anything.

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These people emailed the r-ryantm bot about 100 times. I just trashed all the emails as spam.

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Heads up, I’ve been contacted by someone suspicious, asking to “use” my GitHub account.

As usual, I played along a little bit - it didn’t take much before they sent a screenshot, showing how they would log into my GitHub account, of course showing an OAuth Consent screen for the Starknet GitHub Application.

I wrote back, informing them that while it was a good try, I had already claimed the airdrop. Maybe I should have just asked for up-front payment.

Stay cautious!

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I cashed out aswell and can only recommend revoking the OAuth Authorization and removing the Extension, if only for peace of mind. (I haven’t yet heard of them doing anything shady, but that part - if it happens - usually occurs later)
Also there have been cases where wallets “robbed” their users after a certain amount of time, so additionally if you don’t convert your tokens to fiat at least move them to a sane, reputable wallet (or just cash out in fiat currency, since with everyone cashing out this token is going to be worthless soon anyways).

Hey y’all, I’m a Nix and Nixpkgs contributor but I didn’t get a link sent to me. I think I have good chances of meeting the qualifications. I’ve been using a virtual machine with Firefox but I don’t see how to connect my GitHub account. Could anyone help me out? I tried both Argent X and Braavos extensions.

I have just received an email too, from someone with their name in Chinese, thanking me for my “amazing contributions on GitHub”, saying that I am an “excellent engineer”, and asking me to let them “hire” me to use my GitHub account for 10 minutes to “complete a task” :joy:.

When the subject line of the email is “I want to entrust you”, you know it’s something good! But this also makes me think whether people can actually get tricked into this (by a more well-crafted email), given that, as we have already established, there doesn’t really seem to be anything actually dangerous in the process. All they need to do is create some sort of a web page that asks you to “log into it” using your GitHub, but uses the StarkNet’s app id, and somehow tricks you into intercepting the response token yourself and handing it to them…

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The allocations are public:

https://raw.githubusercontent.com/starknet-io/provisions-data/main/github/github-0.json
https://raw.githubusercontent.com/starknet-io/provisions-data/main/github/github-1.json

Yours is 111.1.

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It seems not everyone got an eMail, I only got aware of this thing from this Discourse.
You need to do the GitHub-Auth dance on https://provisions.starknet.io/ to claim, but you can also look up what is allocated to any GitHub user name on this page without logging in. Searching through the json linken here is probably faster than navigating the page for a mere lookup.

Ahh ok I see the GitHub link now, thank you! Now I have to decide if giving my SSN to Kraken is worth $200 :melting_face: I don’t think there’s any way around that because it’s the only exchange that I can cash out with.

Oh, yeah – that’s the same one.

A big shout out to you: Cole Mickens for your selfless contributions on GitHub, it’s amazing

I try to not let it go to my head. :slight_smile:

I very much hope to cooperate with you. After all, it is a network cooperation across countries, which is very wonderful.

World Peace will have to wait for another airdrop, I guess.

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Man, there’s something about your reward for that being scam emails. It’s even got that personal touch from the data they farmed.

It’s almost poetry.

Guys, even if this looks shady, please let’s consider giving away the tokens we have been awarded to some wallet to fund a bit of further NixOS development (e.g. documentation, a much needed area!). It just takes 5-10 min.

If ~10-20 people pledge their Starknet tokens, this can fund a humble developer salary, for one year, in an inexpensive country. It could be great to fund some targeted effort.

Please consider that option. If there is a bit of interest, I can give further instructions on how to claim the tokens and try to set up some minimal legal structure to handle funds, like a small non-profit association, or channel it to an existing organization.

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+1’ing on the legitimacy. You can do the oauth flow in a different device from the one you’re operating the shady site with: just copy the github link to your phone, authorize the public info, copy the callback back, claim drop, revoke.

This is potentially a life-changing amount of money for some people (e.g. those of us in developing countries), so it’s definitely worth looking into.

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I will test this thing tomorrow!

Edit: it worked.

As someone not interested in cryptocurrencies, I’m not pleased that someone has effectively put a public bounty on breaching my GitHub account - not to mention that of every nixpkgs contributor from the last five years who does not or cannot claim the airdrop themselves.

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