💎 Tax Information

Last updated: 2026-03-25  |  ← Back to RetroBBS

1. Token Rewards May Be Taxable Income

The platform distributes blockchain tokens (RETRO and HYVE) as in-game rewards for gameplay activity. Under IRS guidance (Notice 2014-21, Rev. Rul. 2023-14), receipt of cryptocurrency as compensation or a reward is generally treated as ordinary income at the fair market value of the tokens on the date received.

This means that each time you receive a token reward, you may have a taxable event equal to the USD fair market value of those tokens at the time of receipt — regardless of whether you sell or hold them.

2. IRS Reporting Threshold — Form 1099-MISC

Under current IRS rules, payers are required to issue a Form 1099-MISC to recipients who receive $600 or more in a calendar year from prizes, awards, or other income (including crypto rewards).

You are responsible for reporting all taxable income regardless of whether you receive a 1099. Receiving less than $600 does not exempt you from reporting obligations — it only means the platform may not be required to file a 1099 on your behalf.

3. Platform Annual Reward Cap

The in-app earnings banner shows your claim-safe remaining balance — this is how much more you can earn today while staying within both the daily and annual caps.

4. Token Valuation

For the purpose of cap calculations, the platform uses a configured reference price per token in USD. This price is an administrative estimate and may not reflect the actual market price of the token at any given moment. For tax purposes, you should use the actual fair market value of the tokens at the time of receipt, not the platform's cap-calculation price.

5. Sell / Dispose Transactions (Capital Gains)

If you later sell, trade, or otherwise dispose of tokens you received as rewards, you may have a capital gain or loss equal to the difference between your sale price and your cost basis (the fair market value at the time you originally received the tokens).

• Short-term capital gain — tokens held less than 1 year, taxed as ordinary income.
• Long-term capital gain — tokens held more than 1 year, typically taxed at a lower rate.

6. Record-Keeping Recommendations

We strongly recommend keeping records of:

• Each reward event — date, amount of tokens received, USD value at time of receipt.
• Any token sales or transfers — date, proceeds, cost basis.
• Your wallet address(es) associated with this platform.

On-chain transactions are publicly auditable. Many crypto tax software tools (e.g., Koinly, CoinTracker, TaxBit) can import wallet history to assist with reporting.

7. Non-US Residents

Tax treatment of cryptocurrency rewards varies significantly by country. Non-US users should consult local tax authorities or a qualified advisor in their jurisdiction. Nothing on this page constitutes advice regarding non-US tax law.

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