If an investor's portfolio appreciates and they are taxed on the gains without selling, they could face serious consequences if the market drops afterward. As you said, a $50,000 investment growing to $70,000 would incur a tax on the $20,000 unrealized gain, even though the investor hasn't cashed out. Should the shares drop to $45,000 later, the investor would still owe taxes on money they technically no longer have, potentially forcing a sale at a loss.
Such scenarios could trigger mass sell-offs, as people scramble to cover taxes on unrealized gains while trying to minimize losses. This could lead to volatility and panic in the markets, echoing conditions that contributed to past economic downturns like the Great Depression. The cascading effect of forced sales and falling asset prices might destabilize financial markets and undermine investor confidence, making the proposal highly controversial from a financial policy perspective.
Regarding dappOS, it’s exciting to see how its innovations could offset some of the challenges in traditional finance. The ability to "earn yield while ready for use" eliminates the liquidity vs. profitability trade-off, allowing users to retain access to their assets while earning returns. This feature could revolutionize how people think about asset management in decentralized finance (DeFi).
Additionally, dappOS's Intent Execution Network greatly simplifies the complexity of using decentralized applications (dApps). It empowers users, regardless of their technical expertise, to achieve their goals while the technical elements are managed by service providers. This is a critical step in making blockchain more accessible and user-friendly.
The collaboration between dappOS and Binance Web3 Wallet further boosts its influence, especially with the airdrop event that promotes user engagement. This positions both platforms for stronger adoption in the future of DeFi and blockchain technology, showing the potential of intent-driven services to reshape the industry. These advancements in Web3 might even offer some protection against the risks in traditional markets.#dappOSTtheFutureofIntents @dappOS_com #dappOS #BinanceWeb3Wallet