Connect Gnosis with Kryptos.

Gnosis Chain uses the same address format as Ethereum, so one paste covers everything you hold on it. The network was called xDai Chain until the end of 2021.

Its unusual feature is the fee token. Gas is paid in xDAI, a dollar-backed stablecoin, rather than in a token whose price moves. Fees stay predictable, and every transaction is a small stablecoin disposal.

GNO is a separate token used for staking and governance. It is not what you pay fees with, though several chain listings report it that way.

Paying gas in a stablecoin changes the arithmetic

On most networks the fee token moves in price, so an identical transaction costs a different amount in real terms week to week. Gnosis Chain charges in xDAI, which tracks the dollar.

The upside is obvious: fees are stable and tiny. The part that matters for your records is subtler. Every fee is still a disposal of an asset, so a busy year produces a long list of them. Because that asset is pegged to the dollar, each disposal produces almost no gain or loss, which makes them administratively dull but does not make them disappear.

It also means a common shortcut fails. Tools that assume every network with 0x addresses charges gas in ETH will price your fees against the wrong chart. On a chain where fees are fractions of a cent, that error is small in absolute terms and still wrong in every line. For how disposals are treated where you file, see the USA crypto tax guide or the UK crypto tax guide.

One validator, two kinds of income

Staking on Gnosis Chain pays you in two different tokens, on two different schedules, with two different levels of effort. It is worth understanding before year end, because half of it is easy to miss.

The first stream is GNO. These rewards accumulate and sit there until you claim them. Nothing arrives in your wallet in the meantime. If you have never claimed, you have income waiting rather than income received, and the date you eventually claim is the date that counts.

The second stream is xDAI, which arrives at your address on its own with no action from you. This is the half people forget, because there is no claim transaction to remind them and the amounts are small and frequent.

There is a third wrinkle. The amount that counts as staked is capped, so rewards do not roll back into your stake and start earning. Anything over the cap queues as withdrawable. Your stake stays flat and the rewards pile up beside it, which is the opposite of how most staking behaves.

A card that spends crypto is a card that triggers tax

Gnosis Pay cards spend directly from your wallet on this chain. To the shop it looks like an ordinary card payment. To your tax authority it is a disposal of crypto.

This is the single most under-reported category we see. Someone who buys a coffee every morning has made around 250 disposals by December, none of which felt like a trade. If you spent a stablecoin, the gain on each is roughly nothing and the reporting obligation still exists. If you spent something whose price moves, each purchase has a real gain or loss attached, measured against what you paid for the coins.

Importing the address that funds the card picks all of this up automatically. It is tedious to reconstruct by hand a year later, and it is exactly the sort of thing that comes up when somebody looks at your return closely.