How is this for guidance:
Your Taproot address is derived from your Nostr public key, so anyone who knows your npub can see this wallet's balance and transaction history on the blockchain.
To preserve your privacy, fund and drain this wallet from and to non-private accounts, like exchanges. Never mix these funds with your cold wallets, and treat them as money you can lose, since anyone in control of your nsec can spend it.
Replies (40)
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I think the debate is mostly about new users not knowing that it's not a good practice to to reuse or assign your pubkey with your other addresses. So maybe some warnings are all that's needed.
Yes! Disclaimers are the correct UX to solve this, not technical solutions for privacy.
In Ditto:
View quoted note β
This appears when sending out to a bc1 address. I think I also need to add another disclaimer to any QR codes that could send into Nostr keys.
Except that if you are nym and have good opsec you would be doxxing your nym to a kyc regulated exchange
Correct
What should nyms do then? Mix it?
And have fun with the tax man
My tax agency is already looking at zaps in the lightning network. So, I am already having that fun.
Thats a secret.
No they are looking at nostr notes (not looking inside the lightning network). Big difference
Refuse to move funds tied to their nsec and instead ask zappers to send them funds with payment targets.
Without zaps, then? I can make a setting
The issue is. I don't think there is a form for the IRS that says "I received funds. They're in my name, but I'm saying no to them. I don't want them." You're leaving me with no choice except torch my nsec and go back to twitter.
You can just burn them if you don't want. Some clients are already adding it.
Yes that's what
@Silberengel has been talking about all morning.
Well on one hand nyms often embrace spending permissionlessly.. so we may just spend it and say gfy.
But since spends under typical anon conditions have no social graph associated this is the privacy problem.
Ashigaru minimum pool size is 2,500,000 sats. Since all the funds are already associated then they could be consolidated and spent in a tx0 to break deterministic links.
But there is still a clear path that this nsec did so. Perhaps the deniability is my nsec is compromised?
Seems to me that ocz's for nyms under current conditions are only spendable to other nyms or are a locked in burned utxo clout badge until they are big enough balance to whirlpool.
@Tim Bouma solution should likely solve the client implementations, so that public ocz's are not available easily by users and by and large engage with SP OCZ's in clients.
Even still, my nsec has to be involved in a bitcoin transaction now. I just wanted it to sign some notes. That is opt-in. This is not opt-out.
My problem with that thinking is that all private keys of all kinds, can receive funds in any blockchain. Anyone can lock funds to you in almost all chains, even frankly even banks. That doesnt mean you received them or want them in the eyes of the law
I know.. but public key cryptography doesn't care. If you are signing for anything on the web, anyone can lock funds to you (to that key) in any chain. You really do not have an opt-out of this.
We can make a flag to check before sending that the supporting wallets can check, but it won't solve much in your case.
All the shitcoins are tax nightmares. They just don't seem to care and degens will do whatever degens do, mostly because they are clueless about the potential implications. That isn't a good arguement for doing the same.
User intention doesn't change the tax code sadly. It is income and legally users are obligated to report. Boat accidents land people in jail. It isn't a sufficient defense to say, "I won't/can't spend this money only I control."
Right. Well whatever you can do here would be helpful. Opt-out by default would be preferred if clients respected it.
This is a solid take. I doubt anyone will deposit anything that would trigger a reporting requirement at least from a US perspective (not legal or tax advice) but ya any money received is technically an income event.
The feds don't care about crypto nuance though.
We are stuck in the place where the tools are anachronistic to the power structures.
This is the underlying cypherpunk problem. Building the future means disrupting the laws.
And spent is technically a cap gains event too
Sure, of course.
I actually had a massive headache for last yearβs taxes cause I accepted an Airdrop of a bunch of VVV (the Venice AI token). It was like $15,000 dollars just for using their app. So I wasnβt going to turn it down, but doing all the tax shit with it sucked. Obviously I immediately sold it, but I had to like have some dude thatβs an eth guy first send me that shitcoin to move it to coinbase so I could sell it. I learned some things in the process but what a headache. Plus free sandwich money.
Crypto/tech doesn't fit our old laws so well and creates so much friction when we just want to use money.
I see it now as public on chain zaps are for crossing the strait of hormuz not shitposts from npubs
Different utility, different implementations
A growing part of my practice is dealing with this very thing.
Imagine the economic boom if no one ever thought about income or cap gains ever again.
We would just make things and spend money without ever having to consider the gun to the back of your head.
I imagine it all the time.
It is sad really
Translating into English:
Never use this shit.
A lot of wasted human potential for sure. Extractive waste.
Indicate somehow I that npub=nostr identity. People may not know the npub nomenclature
Data that gets sent directly to the tax administration from CEX.
Enjoy your boating accidents with Bitcoin. More like a total wreckage.
That's called Monero and it could be easily implemented in every Nostr client.
Payment targets are coming. Let the user decide if they want to deal with the IRS. If you build the tools to make onchain zaps possible you will wake up the tax Mafia. So much is certain. It could be the single most destructive thing in a long time for Nostr and Bitcoin. Proceed with caution.
Can you send me the IRS Bitcoin address. I'd prefer to send them all zaps directly as a donation for their service to the country.
one day...
The whole BTC blockchain via Chainanalysis gets fed to CIA/NSA. They even came out with statements that they love Bitcoin.
So just spend everything you receive here zapping around
