MetaMask is not collecting your taxes 🙃

MetaMask terms of service, Tornado Cash governance, and EIP-6969

May 23, 2023

GM Baos,

How much more wallet fud can we take? 

Today we cover:

  • MetaMask rumors 🦊

  • Tornado Cash governance

  • EIP-6969

MetaMask holds no bars 

There have been recent rumors about a section of MetaMask's terms of service that states the company "reserves the right to withhold taxes where required." Some people speculated that this statement allows MetaMask to automatically collect cryptocurrency taxes from transactions on the platform.

However, ConsenSys, the company behind Metamask, has already debunked this rumor. It's impressive how quickly they addressed the issue.

ConsenSys clarifies that this statement only applies to products and services provided by ConsenSys. An example of such products and services is card subscriptions subject to sales tax, which individual MetaMask transactions do not incur. So rest assured, we're all safe in this regard!

What can we take away from this? Our taxes still need to be paid, and it's important that we fulfill our obligations. Ideally…

Tornado Cash governance hack

An anonymous hacker has successfully drained 483,000 TORN from the Tornado Cash contract and now has full control over Tornado Cash governance.

The hacker used a surprisingly democratic method by creating a malicious proposal that included an additional function, which was approved by the voters. As a result, the hacker gained control of the governance tokens, leading to a significant 40% drop in the token's value and a substantial profit for the hacker.

It's important to note that individual wallets and transactions using Tornado Cash are reportedly unaffected by the hack. However, given the uncertainty surrounding the governance process, it's wise to be cautious.

There are rumors circulating that this incident may be related to the arrest of one of the Tornado Cash developers a few months ago and could be seen as a contingency plan, but these speculations should be taken with a grain of salt.

If you are not using Tornado Cash and are not involved in any suspicious or deceitful activities

… or any rugpulls ehem, then you should be absolutely fine!

Justice for smart contract devs ⚖️

A proposed Ethereum Improvement Proposal (EIP-6969) aims to introduce a set of smart contracts that would allow developers to receive a portion of the gas fee whenever their contract is used. This implementation is planned for Ethereum Layer 2, a scaling solution for handling more transactions.

If all works out, this proposal could establish a sustainable way for developers to receive ongoing rewards for their contributions to society through the smart contracts they’ve created.

However, it remains to be seen how this implementation will impact gas fees. It could either deduct a portion from the existing gas fee or add an additional cost, potentially making transactions more expensive. Personally, I’m praying for the first one.

While this proposal holds significant benefits for developers, it’s important to consider its effect on gas fees and subsidiary effects in the market. I hope they create a balance between caring for themselves and making it accessible to the general public.

Bao-Sized News

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