Wyoming ranch owner Charles Hoskinson, the founder of Cardano cryptocurrency platform, has been at the center of a heated debate over Wyoming's stable token process. His claims of lack of transparency and unfair exclusion have sparked significant discussions.

Unraveling the Wyoming Stable Token Drama

Initial Announcement and Exclusions

The Wyoming Stable Token Commission's announcement of taking requests for proposals from pre-qualified vendors like Solana, Avalanche, Sui, Stellar, and Ethereum raised eyebrows. None of the other platforms had explanatory bullet points. Stable tokens aim to hold a static value, and in Wyoming, a single stable token is worth $1. Hoskinson felt blindsided as the state made a selection without publicly listing qualifications, leaving his company out. "The largest Wyoming-based blockchain company with hundreds of employees couldn't even bid at first," he said. Instead, non-Wyoming companies were involved.This decision is a "black eye" on the state's fairness, Hoskinson argued. There was no public comment opportunity or appeal process. Cardano was excluded despite having capabilities that were never made known.

Advocacy and Bias Allegations

In a video on X (formerly Twitter), Hoskinson advocated for the commission to publish all functional and non-functional requirements. Initially, it seemed the commission was heading in that direction, but then the executive director made decisions without proper oversight. Hoskinson suggested that Anthony Apollo, a former Ethereum employee, was biased from the start and even favored Ethereum initially."We believed in equal treatment under the law with Wyoming's cryptocurrency laws, but this process has been far from that," Hoskinson said.

Senator's Perspective

Senator Chris Rothfuss, who played a key role in developing Wyoming's digital asset laws, believes the process was fair. It was designed to be open and public with clear criteria. One of the criteria was "freeze and seize," which refers to seizing questionable cryptocurrency assets. Cardano doesn't have this capability yet, but it could have been working on it if the criteria were public.Rothfuss also said the selection process isn't necessarily finished. "Pre-qualified blockchains will evolve as their capabilities do," he added. Feedback and corrections are welcome.

Cardano's Significance

Cardano has long been a major player in the cryptocurrency sphere, capable of processing a million transactions per second. Created by Hoskinson in 2017 as the next evolution of Ethereum, it's billed as the "third generation" platform. Hoskinson's company, Input Output, creates Cardano and it trades $34 billion daily. His company also has a digital assets laboratory working with the University of Wyoming.Cardano's process for validating blockchain transactions is less energy-intensive and allows for native tokens like NFTs and stable coins. These tokens are "first-class" citizens on the blockchain, making transactions more secure and reducing fees.

Initial Support and Shift

Hoskinson was a vocal supporter of the Wyoming Stable Token a year and a half ago and even offered to build it for a dollar. But over time, the process became more secretive. Subcommittees closed and information wasn't shared. What started as an open RFP process turned into an arbitrary selection with no oversight.The exclusion of Bitcoin and thousands of other blockchains is puzzling. "Bitcoin is huge and Senator Lummis is a fan, yet it was excluded. It's extraordinary," Hoskinson said. He still believes in Wyoming and hopes things will be remedied.Renée Jean can be reached at renee@cowboystatedaily.com.

The recent upswing in Bitcoin's value, coupled with the potential embrace of alternative currencies by the incoming Trump administration, has sparked a renewed interest in the future of cryptocurrency. This resurgence has led to crucial discussions about the impact of crypto on our planet.

Unraveling the Crypto Tax Conundrum for a Sustainable Future

Bitcoin's Ascent and Its Energy Implications

As Bitcoin continues to reach new heights, so does the energy consumption tied to its mining process. Astonishingly, the electricity required for a single Bitcoin transaction can be equivalent to the energy consumption of a person in Germany over three months. While crypto enthusiasts celebrate the booming market, the hidden costs of this growth are being shouldered by society as a whole.The concept of Bitcoin mining involves solving complex mathematical puzzles to validate transactions, demanding an enormous amount of computational power. This power consumption translates into staggering levels of electricity usage, often on a par with entire countries. Every Bitcoin, therefore, carries with it a certain amount of value that has been externalized from society, effectively stealing from the collective.The environmental toll of mining operations primarily stems from its reliance on fossil fuel-powered electricity generation. This not only exacerbates air pollution but also accelerates global warming. As Bitcoin's value continues to soar, the incentive to mine will increase, leading to an exponential growth in the energy footprint of cryptocurrencies.The payment by miners for the electricity used in their mining should ideally internalize the cost of energy generation. However, currently, the cost of a kilowatt of electricity does not fully represent the true cost to society. The consequences of increased fossil fuel usage ripple outwards, causing more frequent and severe natural disasters such as storms, droughts, and wildfires. In a world grappling with the realities of climate change, it is evident that unchecked crypto mining is incompatible with a sustainable future.

Borrowing Crypto Tax Policy from Abroad

Some states have taken proactive steps to address the growing issue of cryptocurrency mining externalities. The Global Solidarity Levies Task Force, led by Kenya, Barbados, and France, is at the forefront of these efforts. During a recent United Nations climate conference, task force members proposed a climate tax on crypto mining set at $0.045 per kilowatt-hour (kWh) of electricity consumed. This levy has the potential to generate as much as $5.2 billion annually.To mine one Bitcoin, approximately 155,000 kWh of electricity is needed, which would translate to an effective tax of $6,975 per individual Bitcoin. This is a little more than a 7% tax at the current trading price. The tax not only generates revenues but also encourages the industry to adopt more energy-efficient practices and renewable energy sources by increasing the cost of operations for miners.The Biden administration had previously considered a 30% tax on electricity used by crypto miners, but the political landscape has since shifted. President-elect Donald Trump, backed by many crypto-friendly donors, is likely to oppose such measures. This makes international examples all the more crucial in demonstrating the viability of a crypto tax for a future administration.

US Leadership in the Crypto Tax Arena

A US-based crypto tax could address several pressing issues. Firstly, it would help reduce emissions by making it more expensive for miners to rely on dirty energy sources. This would be a significant boost for cryptocurrencies that utilize more energy-efficient mining technologies. By incentivizing the adoption of energy-efficient hardware and alternative validation methods, such as the proof-of-state model adopted by Ethereum, the overall climate impact of the crypto sector could be reduced.More importantly, enacting a crypto tax would align with the broader principles of fiscal justice. Industries that contribute disproportionately to pollution should bear the costs of their actions. Crypto mining consumes more electricity than many countries, yet its benefits are limited to miners and transaction parties. Currently, the mining industry operates with significant externalities and lacks proper regulation.The US has the opportunity to strengthen its position in global climate negotiations by demonstrating leadership in cutting-edge industries like cryptocurrencies. By showing commitment to combating climate change through a crypto tax, the US could encourage other countries to adopt similar revenue-producing measures.The US is at a critical juncture. With Bitcoin's value soaring and mining likely to expand to meet demand, the need for action is more urgent than ever. A crypto tax is not only an environmental necessity but also an opportunity to lead the way in creating a more sustainable future.