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We are excited to announce that we have partnered with NFTBank to provide an easy tax solution for Axie Infinity / Ronin Side Chain users! NFT Bank users will now be able to export a CSV file of their Ronin transactions, import to ZenLedger, and calculate their taxes from playing Axie Infinity.
NFTBank
NFTBank is a leading NFT portfolio management service creating visibility for NFT portfolios spread across different wallets and blockchains. NFTBank is powered by its in-house price prediction model that uses historical sales data and NFT metadata to accurately predict market value of individual NFTs. NFTBank continues to build tools that empower NFT investors, creators, guild managers and scholars.
Come check your NFT portfolio at NFTBank.ai or read more.
How To Import NFT Transactions from NFTBank to ZenLedger
See NFTBank’s Tax Data Export Tutorial for a detailed guide on how to export a ZenLedger-specific CSV of your transactions!
Once you have your import ready CSV files, sign into ZenLedger and go to the “Imports” tab. From there click on the “Custom CSV Upload” section, and upload your file.
What is Axie Infinity?
Axie Infinity is the most popular play-to-earn (P2E) game, with over 2 million active players daily. Approximately 40% of Axie players are in the Philippines, where at one point, playing the game was more lucrative than most normal jobs. Axie Infinity is a Pokemon-like game where players breed and collect NFT-based digital pets, known as Axies. Using blockchain-powered genetics, strengths and weaknesses are passed down to offspring. You can then complete quests or compete against other players to earn Smooth Love Potion (SLP) to breed new Axies. Axie infinity is built on the Ethereum blockchain, which suffers from congestion leading to very high gas fees. Due to the amount of microtransactions needed to play Axie Infinity, paying for all these transactions on Ethereum would be prohibitively expensive. This is where the Ronin side chain steps in.
Ronin Side Chain
Ronin is an Ethereum-linked sidechain developed by Sky Mavis specifically for use with Axie Infinity. It is designed to be a “long term solution that makes participating in the Axie game & economy, fast, cheap, and seamless.” Ronin allows all the microtransactions in Axie Infinity to be extremely fast and cheap, while still taking advantage of the benefits of the Ethereum network.
NFTBank is the best place to generate a CSV file of your Ronin transactions, so you can easily do your Axie Infinity taxes!
How is Axie Infinity Taxed?
Games like Axie Infinity allow players to earn crypto or NFTs, purchase in-game items with crypto, and trade in-game NFTs.
Earning Tokens
If tokens earned within a game can typically be traded and sold and have real-world value, these awards are taxed as ordinary income.
Spending or Trading Tokens
Whether you’re spending crypto to buy in-game items; spending in-game tokens for items; or trading in-game tokens, these are all taxable transactions. Each transaction is considered a sale that creates a capital gain or loss.
Bottom Line
Regardless the complexity or quantity of your Axie Infinity transactions, you can rely on NFT Bank and ZenLedger to make the tax process quick and easy.
If you trade or invest in crypto, ZenLedger can help simplify tax season. Automatically aggregate your transactions across wallets and exchanges, compute your capital gains and losses, and auto-fill IRS forms. We support direct integration with 400+ exchanges, 40+ blockchains,DeFi protocols, and even NFTs. Try it now for free
