Is value technically transfered if the channel is still open? If we sit across the table from one another and slide a quarter back and forth is that taxable? If a whole convention center of people are doing it at the same time does that change anything?
Discussion
If we’re gonna keep saying lightning offers “instant final settlement”, then yeah… value is def transferred. Even if the channel is open.
What about when you open a lightning channel with your on chain funds, is that a transaction? Has value been transferred if you’re still in control of the corn?
When the channnel closes, is that a transaction? What if you opened it with 1million sats but it closes with 500k sats but the value of corn has gone up 100% since you opened the channel, is that a gain or a wash?
The IRS isn’t ready for LN!
Heads spinning in many government offices. They are no where near understanding what’s happening