“There are huge consequences for anyone mining or staking,” Dollar said. “While the IRS position is that everything is taxable income up front, you are currently taxed on all token rewards as they are earned before disposing of them. Crypto advocates dispute that even if you don't buy the ownership argument created by the contributor a A lot of these tokens operate in an inflationary environment where by staking there's dilution when people create tokens it's more like a stock split: units go up, value technically goes down.