I see, so strike is doing the latter on LN avoiding taxation? But calling it US dollar transactions because that’s what merchants get? So is this BTC on USD rails or USD on LN rails? Gets into the taxable-ness of market ontology. Interesting.
Discussion
I guess it’s Strike incurring and taking care of the taxable event
Yeah, it’s a kind of a private (strike) and public BTC/LN network subsidy for hard money end users. The government could regulate away this arbitrage by redefining taxable events, I guess, also.
Or maybe strike never actually touches the dollar settlement layer (IRS and state purviews) and so the LN networked dollars are only theoretically taxable. Need a graphic for how strike does this to be able to ask better questions.