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![jaredctate Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::234470296.png) Jared Tate ©️ [@jaredctate](/creator/twitter/jaredctate) on x 38.4K followers
Created: 2025-07-14 17:44:15 UTC

The $DGB DigiDollar $USD Stablecoin Economic Incentive: 

Never Pay Crypto Taxes Again ! The Infinite Gains Tax Hack 🤯🤯🤯🤯

People ask: “Where’s the economic incentive to lock up DGB vs holding naked?”

The answer: **TAX-FREE LIQUIDITY FOREVER**

Let me explain why DigiDollar is the ultimate crypto tax optimization strategy…

**THE LEGAL FOUNDATION**

In the US, borrowing against assets is NOT a taxable event. This principle is well-established:

• **Rev. Rul. 2002-31**: IRS confirmed that loans secured by stock are not taxable sales

• **Commissioner v. Tufts (1983)**: Supreme Court affirmed that debt-financed 
transactions aren’t realization events

• **Woodsam Associates, Inc. v. Commissioner (1952)**: Established that retention of ownership means no taxable disposition

Key point: You NEVER transfer ownership of your DGB. The private keys remain in YOUR possession. You’re simply creating a time-locked encumbrance.

**THIS IS EXACTLY WHAT BILLIONAIRES DO**

• Elon Musk borrows against Tesla stock
• Real estate moguls borrow against properties  
• Jeff Bezos takes loans against Amazon shares

They NEVER sell. They NEVER pay capital gains. They just borrow and let assets appreciate.

**WITH DiGIDOLLAR YOU CAN DO THE SAME WITH CRYPTO**

But some critics argue: “What if I lock my DGB for X years and it moons in year 2? I’d miss out on selling at the peak!”

They’re right about one thing - you CANNOT redeem early. If you lock for X years and DGB moons in year 2, you must wait the full X years. The timelock is cryptographically enforced and unbreakable.

**But here’s what they’re missing:**

The economic incentive is LIQUIDITY WITHOUT SELLING.

**1) Immediate Liquidity**
- Need $XXXXXX for medical bills? Lock $XXXXXX worth of DGB for X years (225% collateral ratio)
- You get $XXXXXX DD today while keeping your DGB
- If DGB goes 10x, you kept exposure to $XXXXXXX of future value instead of selling for just $XXXXXX

**2) Tax Efficiency**
- In many jurisdictions, borrowing isn’t a taxable event, but selling is
- Lock DGB → get DD → spend DD = no capital gains tax
- Only taxable when/if you eventually redeem

**3) Partial Position Management**
- Don’t lock ALL your DGB - maybe lock XX% for liquidity
- Keep XX% “naked” to sell if price spikes and pay capital gains
- Best of both worlds

**4) DGB Price Support**
- As more people lock DGB, circulating supply drops
- This creates upward price pressure benefiting ALL holders
- Your unlocked DGB benefits from others locking theirs

**5) Strategic Use Cases**
- Miners can lock newly mined DGB for operating expenses
- Long-term holders get spending money without breaking their HODL
- Businesses get working capital without diluting DGB reserves

The incentive isn’t to maximize short-term trading gains - it’s to GET LIQUIDITY TODAY while guaranteeing you still own the DGB in the future. It’s for people who need money now but believe DGB will be worth more later.

Think of it like a home equity line of credit - you don’t sell your house, you borrow against it because you believe it will appreciate over time.

**THE INFINITE TAX HACK**

X. Buy DGB at $XXXX
X. DGB goes to $XXXX (100x gain)
X. Instead of selling and paying 20-40% capital gains tax
X. Lock DGB, get DigiDollars, spend tax-free
X. Repeat forever

You could literally live tax-free off your crypto gains for life, just like billionaires do with traditional assets.

**THAT’S the economic incentive.**

Welcome to the future of crypto wealth management. 🚀

#DigiByte #DigiDollar #CryptoTaxHack


XXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1944815218615574757/c:line.svg)

**Related Topics**
[basement](/topic/basement)
[hack](/topic/hack)
[tax bracket](/topic/tax-bracket)
[crypto taxes](/topic/crypto-taxes)
[coins stablecoin](/topic/coins-stablecoin)
[$usd](/topic/$usd)
[tate](/topic/tate)
[$dgb](/topic/$dgb)

[Post Link](https://x.com/jaredctate/status/1944815218615574757)

[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]

jaredctate Avatar Jared Tate ©️ @jaredctate on x 38.4K followers Created: 2025-07-14 17:44:15 UTC

The $DGB DigiDollar $USD Stablecoin Economic Incentive:

Never Pay Crypto Taxes Again ! The Infinite Gains Tax Hack 🤯🤯🤯🤯

People ask: “Where’s the economic incentive to lock up DGB vs holding naked?”

The answer: TAX-FREE LIQUIDITY FOREVER

Let me explain why DigiDollar is the ultimate crypto tax optimization strategy…

THE LEGAL FOUNDATION

In the US, borrowing against assets is NOT a taxable event. This principle is well-established:

Rev. Rul. 2002-31: IRS confirmed that loans secured by stock are not taxable sales

Commissioner v. Tufts (1983): Supreme Court affirmed that debt-financed transactions aren’t realization events

Woodsam Associates, Inc. v. Commissioner (1952): Established that retention of ownership means no taxable disposition

Key point: You NEVER transfer ownership of your DGB. The private keys remain in YOUR possession. You’re simply creating a time-locked encumbrance.

THIS IS EXACTLY WHAT BILLIONAIRES DO

• Elon Musk borrows against Tesla stock • Real estate moguls borrow against properties
• Jeff Bezos takes loans against Amazon shares

They NEVER sell. They NEVER pay capital gains. They just borrow and let assets appreciate.

WITH DiGIDOLLAR YOU CAN DO THE SAME WITH CRYPTO

But some critics argue: “What if I lock my DGB for X years and it moons in year 2? I’d miss out on selling at the peak!”

They’re right about one thing - you CANNOT redeem early. If you lock for X years and DGB moons in year 2, you must wait the full X years. The timelock is cryptographically enforced and unbreakable.

But here’s what they’re missing:

The economic incentive is LIQUIDITY WITHOUT SELLING.

1) Immediate Liquidity

  • Need $XXXXXX for medical bills? Lock $XXXXXX worth of DGB for X years (225% collateral ratio)
  • You get $XXXXXX DD today while keeping your DGB
  • If DGB goes 10x, you kept exposure to $XXXXXXX of future value instead of selling for just $XXXXXX

2) Tax Efficiency

  • In many jurisdictions, borrowing isn’t a taxable event, but selling is
  • Lock DGB → get DD → spend DD = no capital gains tax
  • Only taxable when/if you eventually redeem

3) Partial Position Management

  • Don’t lock ALL your DGB - maybe lock XX% for liquidity
  • Keep XX% “naked” to sell if price spikes and pay capital gains
  • Best of both worlds

4) DGB Price Support

  • As more people lock DGB, circulating supply drops
  • This creates upward price pressure benefiting ALL holders
  • Your unlocked DGB benefits from others locking theirs

5) Strategic Use Cases

  • Miners can lock newly mined DGB for operating expenses
  • Long-term holders get spending money without breaking their HODL
  • Businesses get working capital without diluting DGB reserves

The incentive isn’t to maximize short-term trading gains - it’s to GET LIQUIDITY TODAY while guaranteeing you still own the DGB in the future. It’s for people who need money now but believe DGB will be worth more later.

Think of it like a home equity line of credit - you don’t sell your house, you borrow against it because you believe it will appreciate over time.

THE INFINITE TAX HACK

X. Buy DGB at $XXXX X. DGB goes to $XXXX (100x gain) X. Instead of selling and paying 20-40% capital gains tax X. Lock DGB, get DigiDollars, spend tax-free X. Repeat forever

You could literally live tax-free off your crypto gains for life, just like billionaires do with traditional assets.

THAT’S the economic incentive.

Welcome to the future of crypto wealth management. 🚀

#DigiByte #DigiDollar #CryptoTaxHack

XXXXXX engagements

Engagements Line Chart

Related Topics basement hack tax bracket crypto taxes coins stablecoin $usd tate $dgb

Post Link

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