Man, the crypto stuff might be a bit more complicating than thought.

In case of Staking, did you know some tokens generate "revenue" or interest every few second? Some each 2 hours, some take longer. It depends also with which Validator/provider you stake.

Now, in germany for example 256€ are taxfree to stake.
Do you go above, you have to tax it all. The issue is rather how the fuck to keep track.

Cause I assume that each time you receive a "reward" (your staking interest) this would be the taxable event. Now imagine you stake, generate every few seconds a new (part-)token for you but the token changes price every day.
>reward, INJ value at creation $12,1
>next reward INJ price $12,2
How do you want to fuckin do taxes on that. At the end of the year you have to pay taxes on tokens generated that in the meantime might have tanked in value (since they don't deduct taxes; and how would they, you receive the token as reward, not money like with regular $/€ banking and interest).

Picrel, INJective. Reward frequency 0,67sec.
That means a taxable event more than once in a second. That's nice for compound staking, but taxwise this seems like hell.

It would be possible to keep track if the exchange or the provider where you stake has a transaction history that states the token, the price of the token at creation of the reward and the equivalent in USD/EUR. But it would still be a pain in the ass.

There'd need to be a change in the law to make this easier.