Smart Contract Tax Monitor | Chainscore Labs

overview

CORE SERVICE

Smart Contract Development

Secure, production-ready smart contracts built by certified auditors to power your Web3 application.

We architect and deploy custom smart contracts on EVM and Solana that are secure by design. Every line of code is written by developers who are also certified auditors, ensuring your core logic is resilient from day one.

Full lifecycle development: From initial design and Solidity/Rust coding to deployment and on-chain verification.
Security-first approach: Adherence to OpenZeppelin standards, formal verification, and integration of upgrade patterns like Transparent Proxy.
Gas optimization: Expert tuning to reduce deployment and transaction costs by up to 40%.

Move from concept to a live, audited mainnet contract in as little as 2-4 weeks.

Our process delivers battle-tested contracts for:

DeFi: DEXs, lending/borrowing protocols, yield aggregators.
NFTs: ERC-721A, ERC-1155 marketplaces with advanced minting mechanics.
Enterprise: Custom tokenomics, multi-signature governance, and cross-chain bridges.

key-features-cards

REAL-TIME COMPLIANCE ENGINE

How Our Tax Event Monitor Works

Our automated system detects, classifies, and reports on-chain tax events, eliminating manual tracking and ensuring regulatory accuracy for your DeFi, NFT, and token operations.

Universal Protocol Integration

We monitor transactions across 50+ major DeFi protocols (Uniswap, Aave, Compound, Lido), NFT marketplaces, and cross-chain bridges. Our system automatically parses complex interactions like liquidity provision, staking rewards, and flash loans into standardized tax events.

50+

Protocols Supported

Real-time

Event Detection

Automated FIFO & Cost-Basis Calculation

We apply IRS-compliant accounting methods (FIFO, Specific ID) to calculate accurate capital gains and losses across all wallets and chains. The system maintains a complete, immutable ledger of asset acquisition costs and disposal proceeds.

IRS Compliant

Accounting Methods

Cross-Chain

Portfolio View

Granular Event Classification

Every transaction is tagged with precise tax categories: Income (staking, mining), Capital Gain/Loss (trades, NFTs), Airdrops, Gifts, and Fees. This eliminates guesswork and ensures your reporting aligns with Form 8949 and Schedule D requirements.

15+

Tax Categories

Form 8949 Ready

Output Format

Secure, Auditable Data Pipeline

Built with enterprise-grade security. All data is encrypted in transit and at rest. Our ingestion and processing logic is independently audited, providing a verifiable audit trail for your tax filings and financial reporting.

SOC 2 Type II

Compliance

End-to-End

Encryption

Seamless Export & API Integration

Export formatted CSV/PDF reports for tax software (TurboTax, CoinTracker) or use our REST API to stream real-time tax data directly into your internal accounting or dashboard systems for live portfolio tracking.

Proactive Regulatory Updates

Our legal and technical team continuously monitors global tax guidance (IRS, EU MiCA). We automatically update classification rules and reporting formats, ensuring your compliance adapts to new regulations without manual intervention.

24/7

Monitoring

Auto-Updated

Rule Engine

benefits

AUTOMATED TAX COMPLIANCE

Business Outcomes for Your Neobank

Integrate real-time, on-chain tax event monitoring to automate compliance, reduce operational overhead, and unlock new revenue streams for your digital banking platform.

Automated Tax Reporting

We deliver a real-time feed of taxable DeFi events (swaps, staking rewards, liquidity provision) for every user wallet, enabling automated 1099 and equivalent international form generation.

> 95%

Report Accuracy

Real-time

Event Detection

Regulatory Risk Mitigation

Proactively monitor for wash trading, airdrops, and high-value NFT transfers to ensure your platform meets evolving IRS, HMRC, and EU MiCA reporting requirements.

24/7

Compliance Monitoring

Multi-jurisdiction

Rule Support

Reduced Operational Cost

Eliminate manual reconciliation and data aggregation from multiple blockchains. Our API delivers normalized, accountant-ready data, cutting compliance team workload by up to 70%.

70%

Cost Reduction

Single API

Integration Point

Enhanced User Experience

Provide customers with an in-app dashboard showing realized/unrealized gains, estimated tax liability, and year-to-date activity, increasing platform stickiness and trust.

Pre-built UI

Components

Portfolio View

Integrated

New Revenue Streams

Offer premium tax advisory services or partner with crypto tax software (e.g., TokenTax, Koinly) using our aggregated data, creating a new monetization channel.

Partner API

Ready

Data Licensing

Model Supported

Enterprise-Grade Security & Audit Trail

Every tax event is cryptographically verified on-chain and stored with a tamper-proof audit trail, providing defensible documentation for regulatory inquiries.

SOC 2

Compliant

Immutable Log

Audit Trail

The Infrastructure Decision

Build vs. Buy: Tax Event Monitoring

A detailed comparison of the time, cost, and risk involved in developing a robust tax event monitoring system in-house versus leveraging Chainscore's managed service.

Factor	Build In-House	Chainscore Managed Service
Time to Production	6-12 months	2-4 weeks
Initial Development Cost	$150K - $400K+	$15K - $50K
Annual Maintenance Cost	$80K - $150K (1-2 FTEs)	Optional SLA from $30K/year
Security & Audit Overhead	High (Unaudited Risk)	Low (Pre-audited, Battle-Tested)
Coverage: Chains & Protocols	Manual Integration per chain	20+ EVM & Non-EVM chains pre-integrated
Event Detection Accuracy	Variable (Custom Logic Risk)	99.9% (Validated by Auditors)
Real-time Alerting & Webhooks	Custom Build Required	Out-of-the-Box with Dashboard
Regulatory Compliance (FATF Travel Rule, MiCA)	Your Responsibility	Compliance-First Architecture
Team Expertise Required	Senior Solidity Devs, Tax Specialists, DevOps	Your Existing Team + Our Experts
Total Cost of Ownership (Year 1)	$230K - $550K+	$45K - $80K

how-we-deliver

FROM REQUIREMENTS TO PRODUCTION

Our Delivery Process

A proven, transparent workflow designed for technical leaders. We deliver a production-ready tax event monitoring system, not just a proof-of-concept.

1. Architecture & Integration Design

We analyze your existing stack and design a monitoring architecture that integrates seamlessly with your data pipelines and reporting systems. We define event schemas, data flows, and API specifications.

2-3 days

Design Sprint

100%

Spec Alignment

2. Smart Contract Event Indexing

Deployment of high-availability indexers for target protocols (e.g., Uniswap V2/V3, Aave, Compound). We configure real-time listeners for precise tax-relevant events like swaps, liquidity changes, and rewards.

> 99.5%

Event Capture

< 1 sec

Detection Latency

3. Data Enrichment & Normalization

Raw blockchain data is transformed into actionable tax events. We enrich transactions with real-time token prices (via Chainlink or custom oracles), calculate cost basis, and apply jurisdictional logic.

20+

Protocols Supported

24/7

Price Feeds

4. Security Audit & Stress Testing

The entire data pipeline undergoes rigorous testing. We simulate network forks, high-volume event storms, and validate data integrity end-to-end before production handoff.

100%

Code Review

Load Tested

To 10k TPS

5. Deployment & API Integration

We deploy the monitoring system to your cloud environment (AWS/GCP) with full infrastructure-as-code. You receive secure REST/WebSocket APIs for querying normalized tax events.

1-2 days

Deployment Time

99.9%

Uptime SLA

6. Documentation & Ongoing Support

Complete technical documentation, runbooks, and a 30-day support period. We provide monitoring dashboards for system health and are available for protocol expansion requests.

30 days

Included Support

24h

Critical Response

Smart Contract Tax Event Monitor

Frequently Asked Questions

Get clear answers about our specialized service for real-time tax event detection and compliance reporting.

Our system deploys a proprietary, non-invasive monitoring agent that listens to your protocol's on-chain events in real-time. It uses a rules engine we configure for your specific tokenomics (e.g., transfer taxes, reflection rewards, buy/sell fees) to classify transactions. Detected tax events are normalized, enriched with wallet and token metadata, and streamed to your backend via webhook or API, or logged for batch retrieval. We handle indexing across supported chains, so you don't have to.

Smart Contract Tax Event Monitor

Smart Contract Development

How Our Tax Event Monitor Works

Universal Protocol Integration

Automated FIFO & Cost-Basis Calculation

Granular Event Classification

Secure, Auditable Data Pipeline

Seamless Export & API Integration

Proactive Regulatory Updates

Business Outcomes for Your Neobank

Automated Tax Reporting

Regulatory Risk Mitigation

Reduced Operational Cost

Enhanced User Experience

New Revenue Streams

Enterprise-Grade Security & Audit Trail

Build vs. Buy: Tax Event Monitoring

Our Delivery Process

1. Architecture & Integration Design

2. Smart Contract Event Indexing

3. Data Enrichment & Normalization

4. Security Audit & Stress Testing

5. Deployment & API Integration

6. Documentation & Ongoing Support

Frequently Asked Questions

Get a free quote.

Get In Touch
today.

Smart Contract Tax Event Monitor

Smart Contract Development

How Our Tax Event Monitor Works

Universal Protocol Integration

Automated FIFO & Cost-Basis Calculation

Granular Event Classification

Secure, Auditable Data Pipeline

Seamless Export & API Integration

Proactive Regulatory Updates

Business Outcomes for Your Neobank

Automated Tax Reporting

Regulatory Risk Mitigation

Reduced Operational Cost

Enhanced User Experience

New Revenue Streams

Enterprise-Grade Security & Audit Trail

Build vs. Buy: Tax Event Monitoring

Our Delivery Process

1. Architecture & Integration Design

2. Smart Contract Event Indexing

3. Data Enrichment & Normalization

4. Security Audit & Stress Testing

5. Deployment & API Integration

6. Documentation & Ongoing Support

Frequently Asked Questions

Get In Touch today.

Get In Touch
today.