From a03e82f8801fe0cc782580c163308df83827b973 Mon Sep 17 00:00:00 2001 From: Jon Michael Aanes Date: Wed, 15 May 2024 20:59:51 +0200 Subject: [PATCH] Small adjustments --- finance/mpc-token-grant.md | 36 +++++++++++++++++++++--------------- 1 file changed, 21 insertions(+), 15 deletions(-) diff --git a/finance/mpc-token-grant.md b/finance/mpc-token-grant.md index f413ca5..cc1f311 100644 --- a/finance/mpc-token-grant.md +++ b/finance/mpc-token-grant.md @@ -16,10 +16,12 @@ Make sure you read up on [the tax effects of cryptocurrencies](https://skat.dk/borger/aktier-og-andre-vaerdipapirer/skat-paa-krypto-kend-reglerne-saa-du-undgaar-et-skattesmaek) yourself. +This article is written by me personally, and is not authored or authorized by Partisia or Partisia Blockchain Foundation. + ## Overview -Assuming a scenario where you want to sell your MPC tokens ASAP for money -in the bank, you are probably looking on a flow of: +Assuming a scenario where you want to sell your MPC tokens ASAP for fiat +currency in the bank, you are probably looking on a flow of: 1. MPC Tokens are moved to your MPC account. 2. Transfer MPC tokens to Exchange A (Kucoin or gate.io) @@ -29,17 +31,18 @@ in the bank, you are probably looking on a flow of: 6. Withdraw fiat to bank account. Most steps above occur within exchanges and financial institutes, but step -2 happens directly on Partisia Blockchain, which requires BYOC -(Bring-Your-Own-Coin) for transferring MPC tokens. There exists several BYOC, +2 happens directly on Partisia Blockchain, which requires [BYOC +(Bring-Your-Own-Coin)](https://partisiablockchain.gitlab.io/documentation/pbc-fundamentals/byoc/introduction-to-byoc.html) for transferring MPC tokens. There exists several BYOC, all of which must be transferred from another blockchain, with the easiest to -acquire being MATIC, the native coin of Polygon Proof-of-Stake. I recommend +acquire being [MATIC](https://coinmarketcap.com/currencies/polygon/), the native coin of Polygon Proof-of-Stake. I recommend buying enough to cover your entire token grant period: -1. Buy BYOC through exchange or payments processor. Around 40-50 USD worth +1. Buy [BYOC](https://partisiablockchain.gitlab.io/documentation/pbc-fundamentals/byoc/introduction-to-byoc.html) through exchange or payments processor. Around 40-50 USD worth should be enough for the entire period. -2. Transfer to MetaMask-accessible account. -3. Deposit into your MPC account using the Browser's built-in BYOC bridging - page. +2. Transfer to [MetaMask](https://metamask.io/)-accessible account. This can + be either a Ledger Hardware Wallet account visible to [MetaMask](https://metamask.io/), or a [MetaMask](https://metamask.io/)-native account (though I do not recommend the last option, see next section.) +3. Deposit into your MPC account using the [Browser's built-in BYOC bridging + page](https://browser.partisiablockchain.com/assets?tab=coins). ## Setting up accounts @@ -54,7 +57,7 @@ There are three primary ways for setting up accounts: 3. Using a private key. Not easy, but can be made somewhat secure. These accounts will be used for receiving MPC tokens, transferring them, and -acquiring BYOC. +acquiring [BYOC](https://partisiablockchain.gitlab.io/documentation/pbc-fundamentals/byoc/introduction-to-byoc.html). I will only be covering Ledger, as that is what I will be using. @@ -72,8 +75,7 @@ Setup guide: 4. Install [MetaMask for Chrome](https://metamask.io/). 5. [Connect MetaMask to your Ledger](https://support.ledger.com/hc/en-us/articles/4404366864657-Connect-your-Ledger-to-MetaMask?docs=true). -You are now ready for using your Ledger Hardware Wallet for acquiring BYOC and -for transferring MPC Tokens. +You are now ready for using your Ledger Hardware Wallet for acquiring [BYOC](https://partisiablockchain.gitlab.io/documentation/pbc-fundamentals/byoc/introduction-to-byoc.html) and for transferring MPC Tokens. ## Selecting exchanges @@ -172,6 +174,8 @@ Contrast with a theoretic value of `10000 MPC * (0.4 USDT/MPC) * (0.91 USDT/€) ## Discussion: Letting it ride +This section assumes the second tax interpretation above, and makes the case that you should prioritize your personal financial situation over HODLing. + It might be tempting to letting your MPC possessions "ride", e.g. paying off your tax burden by selling half, and keeping the rest in MPC. While this is definitely a possibility, you should not be blinded by greed or by emotional @@ -185,12 +189,14 @@ and you should consider the consequences of this. 3. If you have already decided to invest, consider that there might be other investments which have better characteristics. Crypto investment can be rough. -4. From a [diversification point of view](https://en.wikipedia.org/wiki/Diversification_(finance)) +4. Consider this scenario: Instead of getting MPC tokens, you got the + equivalent amount in fiat currency. Would you in that case choose to invest in MPC tokens? +5. From a [diversification point of view](https://en.wikipedia.org/wiki/Diversification_(finance)) consider that you are possibly possessing an incredibly lopsided portfolio, due to the MPC grant. -5. Also regarding diversification: You are already heavily invested in the +6. Also regarding diversification: You are already heavily invested in the well-being of Partisia and Partisia Blockchain, due to working there. - The price of MPC and the financial situation of Partisia will most likely + The price of MPC and the financial situation of Partisia is likely to correlate.