Apply the procedure below to account for transactions related to staking activities.
Staking of Currency
Staking is represented by a withdrawal/outflow transaction (whether to an on-chain contract or an exchange) and must be categorized under the Staking transaction type. Using this category excludes the transaction from capital gains calculations, making it fiscally irrelevant.
Here is an example of a staking transaction:
Receiving Staking Rewards
Rewards earned from staking are usually received on a regular basis (daily or weekly, depending on the protocol/platform used) and are recorded as deposit/inflow transactions categorized under Staking.
Here is an example:
Return of Funds at the End of the Staking Period
At the end of the staking period, the initially locked amount will be returned, resulting in a deposit/inflow transaction that should be categorized as Trading.
Here is an example:
Complete Overview of Staking Management
The image below illustrates the full staking management process, from the initial currency lock-up to the receipt of rewards and the final return of the locked amount.
Summary:
The withdrawal transaction for staking and deposit transactions for receiving staking rewards must be categorized as Staking.
The deposit transaction for the return of the initially locked amount must be categorized as Trading.