Can we choose not to receive airdrop

So for those of us who have luna coins in exchanges like Kucoins and FTX, can we opt not to receive the airdrop if the proposal goes through?

New proposal sounds like a pon - zi scheme. So far have checked with the exchanges and they are also not sure how the airdrop is going to work.

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This airdrop is a scheme to kidnap community members by means of vesting. This coin makes you feel like BCH was million times better. Undoubtably this new coin will be the most hated coin crypto has yet seen.

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seriously i been asking this questions for day, still no answer lol

Why would you want to do that? Surely if you don’t support the fork, just take the airdrop anyway and sell it? If your goal in refusing it is to protest, selling it does the same thing… if everyone sells it immediately there’s all sell pressure, no demand, and the fork tanks regardless. Or am I missing something?

the most funny fact is that 85% of the new coins will be blocked for 2 years for most of people… Also no officials comments about fork support from major exchanges… no exchanges no money.

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I think tax purposes is one reason why someone would not want to get the airdrop. Depending on your country’s regulations, you may be obligated to pay taxes at the year of receiving the drop no matter if you can sell it or not.

In some cases when the value of received equity is big, people go bankrupt due to tax obligations. Some lucky fortunate people can avoid this by taking a loan from a bank to pay the taxes, but obviously having to take a loan is up to personal situation and also has additional expenses.

Believe it or not, but sometimes it’s cheaper not to receive free money.

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Since Terra/Luna is IBC enabled, you can still sell it on Osmosis frontier I guess. It’s a Cosmos chain that enables swap of IBC-enabled chains and it works just like a CEX. I do agree with everyone that locking up 85% of the supply is an incredibly… well, one-dimensional tactic to just pump up the price and it won’t work. It is to buy time for development while speculators play with the price, and I won’t go along with it.

That’s a really good point, I hadn’t thought of that. But could it really be cheaper not the get the airdrop? Surely tax will always just be a percentage - it couldn’t exceed the amount you’re airdropped? Or could it? Would be great if you could explain more

It may or may not be cheaper not to receive it. It’s accumulation of bad things that can make it more expensive, i.e. the following:

Whether it can or will get more expensive for you or some other people is based on multiple variables. The biggest variable is the tax regulations that you are supposed to follow based on where you live, have lived, moved, etc.

The biggest problem that can come up with any tax regulation is:

  1. The grouping of airdrop regarding tax regulations.
    • What type of income is it supposed to be for you in your country?
      • Can you deduct anything from it?
      • What is the tax percentage that you have to pay?
    • When do you have to pay it all at once in the tax year of receiving it?
  2. There is also the potential danger of double taxation in case you would have moved to another country and those two countries do not have a double taxation treaty.

While the tax percentage (when excluding double taxation) is quite definitely always going to be less than 100% for obvious reasons. You may end up in a situation where you have to pay the taxes in advance from money that you don’t have. If your personal situation would be very unique, having to pay money that you don’t have could bankrupt you for obvious reasons.

Bankruptcy and any sort of a bigger change in lifestyle because of a tax obligation is something I would always categorize as more expensive than the received benefit. There is also the question of any missed opportunities in life that you could have done if you had the money that you had to pay for the taxes in advance.

So whether it can get more expensive (or not) for you or someone else is based on their location in world and other personal situations.

~

In my case I’m most likely going to avoid the airdrop and buy into it later so that I won’t have tax obligations from this before selling my position. Having to pay taxes for something now that I won’t have a chance for selling for two years is already something I went through once and it’s fairly horrible thing to experience.

First you lose the money that you pay the taxes with. Then you supposedly have X amount of money to your name, but your bank account is empty. Money you supposedly have but cannot use. The only case where you can turn it into real money is if bank gives you a loan against that equity, but that depends on many things, such as do they respect or value that equity and are you in a trustworthy position to be given a loan for.

So in many ways, might as well be real poor instead of fake poor if those two are the options.

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