DappRadar x iVC
Delivering international value chain consulting and redefining transfer pricing in the web3 industry.
Helping DappRadar build transparency on the blockchain
DappRadar allow users to discover and track everything DeFi, NFT and Gaming.
DappRadar came to iVC looking to create and build appropriate and compliant organisational structures that enable the business to scale.
As a Web3 project, its core principles are decentralisation, transparency, and interoperability. Our mission was to ensure that their Value Chain reflected this.
Business decisions made at DappRadar are shared with community stakeholders to vote on initiatives, allowing for maximum transparency.
The business was looking to take a different path from other competitors who failed to adhere to critical Web3 principles.
Monthly value chain calls
Web3 organisational structure
Transfer pricing in web3
The regular schedule has helped in keeping the project on track and priorities clear, which has been instrumental in streamlining our workflow and enhancing productivity. The ability to discuss pressing matters and receive timely feedback contributes to more efficient decision-making and problem-solving.
Andrius Serpenskas
Legal Counsel
DappRadar
★★★★★
What iVC delivered for DappRadar?
Our Value Chain Consultants have provided the DappRadar team with a clear roadmap to provide its community and team with a revolutionary operational structure. That creates the framework for a truly decentralised experience aligning with core Web3 principles.
Decentralised structure
Enabling web3 principles with decentralised structures whilst fostering transparency with regulators, community and industry.
International value chain
Set up the international value chain structure for DappRadar to help their business manage tax and profitability across multiple jurisdictions.
Provided DappRadar with clear, practical and ongoing advice that was instrumental in streamlining DappRadar workflows, enhancing productivity and resulted in problem-solving with real value.
Common Challenges in Web3
Web3 Regulation
The Web3 industry may find itself operating in a regulatory grey zone, with many countries still developing tax policies for assets like cryptocurrencies and tokens. This lack of clear guidance leaves businesses and individuals uncertain about their tax obligations, and inconsistent regulations across jurisdictions make compliance even more difficult for those involved in international transactions.
Valuation and Reporting of Crypto Assets
Web3 platforms face high compliance costs, especially with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. For decentralized platforms without centralized control or formal corporate structures, ensuring compliance can be complex and costly, with failure to meet these standards leading to significant penalties.
Web3 Compliance
Cost Basis Tracking
Valuing and reporting crypto assets is challenging due to their extreme volatility. Determining the fair market value at the time of transactions, especially for small, frequent, or DeFi-related activities, adds complexity, making it difficult to accurately report income, gains, or losses for tax purposes.
Tracking the cost basis of crypto assets is difficult because Web3 transactions can involve multiple, frequent trades and decentralized protocols. This complexity makes it hard for users and businesses to maintain accurate records of the original acquisition cost, which is essential for correctly calculating capital gains and tax liabilities.
Web3’s decentralized nature enables seamless cross-border transactions, but this also complicates tax reporting and compliance. Determining where income or gains are realized and which jurisdiction’s tax laws apply is difficult, especially when there are no clear geographic ties to the transaction or entity involved.
Cross-Border Transactions
Accounting for DAOs and Decentralized Protocols
DAOs (Decentralized Autonomous Organizations) and decentralized protocols present unique accounting challenges due to their lack of centralized control and traditional organizational structures. Tracking revenue, expenses, and income attribution is complicated, as there is often no clear entity responsible for financial reporting, making tax compliance and transparent accounting difficult to manage.
Decentralised outcomes for DappRadar
DappRadar now has a decentralised operational structure with a clear bridge between corporate and community-based decision-making. iVC enabled DappRadar to distinguish between the ownership of assets IP, and revenue streams.
iVC has collaborated alongside DappRadar team to create a governance and transfer pricing structure that enables the business to scale while delivering on its core Web3 values.
Actions iVC delivered:
Provided clear transfer pricing structure
Mapped and structured value chain around IP
Improved organisational & operational structure
Aligned revenue streams with cost and ownership
Ensured operational independence of DAO
Built transparency for all stakeholders
iVC Road to Value Creation
We provide a clear path to profitability with a supportive team that delivers regular catchups to ensure we're strategically aligned with your needs, building value chain structures that enable scale and provide a path to international growth focused on your vision for the long term.
Let's start our delivery that will create effective scaling path to reach your goals, aligning with national and international regulations.
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