Good news Xribers! In the latest 2 weeks we participated in Polygon Grant Program presenting our future product related to crypto tax reporting platform.
The Polygon community chose our project offering us the opportunity to grant an important investment to start developing
What is Polygon?
Polygon is a multi-chained system which connects Ethereum-compatible blockchain networks and is built to solve the scalability issues on the current Ethereum network.
It is a layer 2 solution that works on top of Ethereum’s primary blockchain and it uses side chains to unclog the main platform in a smart and cost-effective manner.
Polygon (formerly Matic Network) was launched in October 2017 and it was co-founded by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, two experienced blockchain developers and a business consultant.
How Xriba and Polygon will be integrated?
Xriba is developing a crypto tax reporting platform that allows users to aggregate data from blockchain transactions and automatically generate the reports required to comply with tax compliance for digital assets and cryptocurrencies, taking advantage of the most advanced blockchain tools and technologies while avoiding errors and wasting resources.
Polygon community will be one of the first use case and their community will be involved in a beta testing program before the official go-to-market.
This important grant it’s a sign that Xriba’s project is moving in the right direction and that there is demand for this product.
Furthermore Xriba will undertake to develop an ad-hoc bridge for Matic’s Holders. Xriba Bridge will work to swap Xriba Token from Ethereum to Matic chain and vice versa making the tokens interoperable.
The milestones of the grant
- After the initial release, users will be able to sign in to Crypto Tax by providing an email address, a password, and a reference currency. Users will be able to enter their wallet addresses and import transactions once they’ve logged in. It will be possible to see their assets as well as the changes in their value over time.
They can then choose a wallet and manually reconcile transactions by selecting the kind of entry and exit for each transaction.
Incoming or outgoing payments, staking annuities in PoS or LP, sales, lending annuities or interest payments for borrowing, and so on are examples of transactions.After they’ve completed the reconciliation, they’ll be able to generate a report of their crypto activity that includes the capital gain or loss.This report will be able to be imported into the primary accounting software.
- Transaction reconciliation automation will be introduced in the second release.
Once the user has entered their wallets into the platform, they can just click a button, and the software will automatically classify each wallet’s transactions.
The user will then be able to visit a screen where the user can accept the transaction categorization or manually adjust the classification if some transactions are not recognised by the software or need to be classed differently. The report’s reporting and export process will follow.
- Staking generates particular types of transactions that must be distinguished from payments.
With the third release, users will be able to use a transaction reconciliation algorithm optimized to recognize this type of transaction. This will lead to fewer errors to correct and a better user experience.
- Liquidity pool deposits are a unique type of DeFi transaction that differs significantly from traditional accounting. Not only from the perspective of reconciliation automation, but also from the perspective of report generation, reconciling these transactions is a difficult task.
For deposits, annuities, and withdrawals from LPs, both the transaction categorization algorithm and the report generation method will be refined in the fourth version, providing the user with exact information on these specific circumstances. Users will save time and make fewer mistakes as a result of this.
Our main goal
The final goal is to allow Matic hodlers and Polygon dapps users to comply with their local declaration regulations and avoid future issues thanks to our solution. Not compilIng a fiscal form even if there’s no need to pay taxes can expose Polygon adopters to the risk of future problems with local tax authority. We want to help users to avoid this risk.
In addition, the introduction of a tool to integrate Polygon with traditional compliance needs will alleviate traditional businesses’ fears regarding regulation, allowing them to more easily enter Polygon dapp services.