proof-of-stake | Bit.Fan

IRS updates guidance to let qualifying trusts stake PoS assets without losing tax status

The U.S. Internal Revenue Service released Revenue Procedure 2026-20 on Oct. 6, replacing Revenue Procedure 2025-31 issued in November 2025. The new guidance says qualifying investment trusts and grantor trusts may take part in proof-of-stake staking while keeping their favorable tax treatment. IRS classifies compliant staking as a property preservation activity, allowing those trusts to remain on the passive side and preserve their status under Internal Revenue Code Sections 671 through 677. The safe harbor sets out 14 conditions, including exchange listing requirements, single-asset holdings, qualified custody, SEC-approved liquidity policies, and a ban on stockpiling staking rewards. The guidance applies to tax years ending on or after Nov. 10, 2025.

680

Polygon

3 months agoNews Editor

Polygon Discloses Security Flaws Patched in Austin and Kyoto Hard Forks

Polygon has disclosed several previously undisclosed security vulnerabilities that were recently fixed through two hard forks named Austin and Kyoto. The flaws could affect the company's proof-of-stake network. The vulnerabilities were found across the Bor and Heimdall clients, with issues ranging from denial-of-service risks to exhaustion of validator resources. There were also defects affecting checkpoint and milestone processing. Polygon said that all fixes were tested privately before they were deployed to mainnet and before the company went public with the details. The most severe problem concerned Heimdall. Specially crafted transactions could force validators to perform excessive processing work, which in turn could disrupt network operations. The Austin hard fork separately fixed two denial-of-service risks in the Bor client, both of which could slow down block processing or lead to node crashes. Polygon also stated that none of these flaws had been exploited on mainnet, and that the patches were completed proactively before any vulnerability details were publicly disclosed.

1330

staking

4 months agoNews Editor 01

What Staking Is: Where PoS Yield Comes From and What Risks Matter

Staking on proof-of-stake networks earns rewards from token issuance and transaction fees, not bank-style interest. The tradeoff includes price swings, lockups, slashing, and platform risk.

1140

Cardano

4 months agoNews Editor 01

Cardano Staking Guide: ADA Yields Near 5% APR, With Steps and Risks Explained

Cardano holders can stake ADA through exchanges or Web3 wallets to earn rewards. The source cites staking returns near 5% APR, while warning that token price swings, variable yields, and pool fees can cut actual returns.

1040

Circle

4 months agoNews Editor 01

Circle Weighs Native Arc Token as Network Eyes Gradual Move to PoS

Circle said Arc Network is advancing on testnet while a native token is under review for governance, incentives, and validator rewards, with a phased shift to PoS planned but no mainnet timeline confirmed.

700

blockchain

4 months agoNews Editor 01

Blockchain Demystified: Glass Boxes, Immutable Ledgers, and Consensus Mechanisms

Blockchain is a distributed, immutable ledger using block-linking, hashing, and consensus to achieve decentralization. This article covers the glass box analogy, PoW vs PoS, historical roots, and key features.

2050

NPoS

4 months agoNews Editor 01

What is Nominated Proof-of-Stake (NPoS) and How Polkadot & Kusama Use It

NPoS replaces mining and random selection with algorithmic elections and community nomination. Polkadot runs 600 validators, Kusama about 1,000, with average yields around 14%.

2340

Ethereum

4 months agoNews Editor 01

Cambridge Report Says Ethereum Power Use Fell 99.9% After The Merge

A CCAF study says Ethereum’s annual electricity use fell from 8.88 TWh to 7.87 GWh after moving to Proof-of-Stake, while estimated emissions dropped to 2.37 ktCO₂e.

870

Total 29 items