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BUSINESS
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The Protocol: Vana Introduces Token Standard for Data-Backed Assets
Welcome to The Protocol, CoinDesk’s weekly wrap-up of the most important stories in cryptocurrency tech development. I’m Ben Schiller.
In this issue:
Vana launches token standard
Hashgraph to debut private blockchain
ASICs will look more like servers
An interview with Gensynâs Ben Fielding
This article is featured in the latest issue of The Protocol, our weekly newsletter exploring the tech behind crypto, one block at a time. Sign up here to get it in your inbox every Wednesday.
Network News
VANAâS DATA-BACKED TOKEN STANDARD: Crypto enthusiasts might have heard of the ERC-20 token standard, which provides guidelines to ensure that tokens created on the Ethereum smart contract blockchain are compatible and can interact with other tokens and applications within the network. A similar standard for data-backed tokens, called VRC-20, has now emerged. Vana, an EVM-compatible Layer 1 blockchain that helps users monetize personal data by bundling it into DataDAOs for AI model training, introduced the new standard early this week to boost trust and transparency in the market for data-backed digital assets. The VRC-20 standard design includes specific criteria such as fixed supply, governance, and liquidity rules while ensuring real data access by tying tokens to actual data utility. Additionally, it promotes continuous liquidity through rewards that ensure market stability. “This isnât speculation. This is real financialization of data,” Vana noted on X. Vana launched its mainnet in December, with VANA as its native cryptocurrency. Since then, the network has onboarded over 12 million data points through multiple DataDAOs, reflecting strong demand for user-owned data. DataDAOs or data liquidity pools are decentralized marketplaces that bring data on-chain as transferable digital tokens. DLPs are where data is contributed, tokenized and made ready for use in applications such as AI model training. â Omkar Godbole Read more.
HASHGRAPH LINES UP Q3 PRIVATE CHAIN: Hashgraph, the blockchain development firm focusing on the Hedera (HBAR) network, is building a private, permissioned blockchain for enterprises in highly regulated industries with plans to debut in the third quarter of 2025. HashSphere, built with Hedera’s technology, aims to bridge private and public distributed ledgers, ensuring compliance with regulations while maintaining interoperability, the company said Monday. Hashgraph is looking to provide services to asset managers, banks and payment providers seeking secure, low-cost cross-border transactions with stablecoins.While public blockchains offer security and transparency, enterprises in industries like finance and payments often face compliance challenges, particularly with know your customer (KYC) and anti-money laundering (AML) requirements. HashSphere addresses this by restricting access to verified participants, enabling firms to develop tokenized assets, AI-powered services and other blockchain-based products while meeting regulatory standards. The network also integrates Hederaâs existing tools, including the Token Service for managing digital assets and the Consensus Service for recording transactions with trusted timestamps. The platform is compatible with the Ethereum Virtual Machine (EVM), allowing developers to deploy decentralized applications using Solidity and other EVM languages. â Kris Sandor Read more.
ASICS TO BE MORE LIKE SERVERS: In the beginning, there were only CPUs, then GPUs, for bitcoin mining. Then came the mighty ASIC in 2013, and with it, the âshoeboxâ form factor that has become emblematic of the bitcoin mining industry. What comes next? ASIC manufacturers are increasingly betting on a hydro-cooled server rack design to become a substantial portion of bitcoin mining fleets, leaning into the âdirect-to-chipâ cooling for further efficiency gains. Last September, Bitmain announced its model U3S21EXPH developed in a partnership with Hut 8. Its U3 design means that one unit takes up three spaces in a traditional server rack. MicroBT soon followed with its M63 Hydro series, as did Bitdeerâs Sealminer A2 Hydro unit. Following suit, Auradine released its server rack model, the AH3880, this March. Its U2 design, which occupies two server slots, is a bit smaller, but it packs more hashrate per unit of space at 600 TH/s (or 300 TH/s per slot) versus Bitmainâs 860 TH/s (286.66 TH/s per slot). The benefit of a server rack ASIC lies in standardization. Bitcoin miners are increasingly marching in step with the traditional datacenter industry, and that industry could see 40% adoption of direct liquid-to-chip cooling by 2026, according to data center developer Cyrus One. If miners adopt this design, then theoretically, they can optimize their supply chains by converging on server designs that are becoming best practice in the big-boy data center sector. â Colin Harper, Blockspace Read more.
GENSYN CEO BEN FIELDING: Ten years ago, when he was still a young AI researcher beginning his PhD track, Ben Fielding explored how âswarmsâ of AI â clusters of many different models â could talk to each other and learn from each other, which might improve the collective whole. There was just one problem: He was handcuffed by the realities of that noisy machine beneath his desk. And he knew he was outgunned by Google and other Big Tech. Compute constraints would always be an issue, he realized. The solution? Decentralized AI. Fielding co-founded Gensyn (along with Harry Grieve) in 2020, or years before Decentralized AI became fashionable. The project was initially known for building decentralized compute, but the vision is actually something wider: âThe network for machine intelligence.â Theyâre building solutions up and down the tech stack. And now, a decade after Fieldingâs noisy desk annoyed his lab-mates, the early tools of Gensyn are out in the wild. Gensyn recently released its âRL Swarmsâ protocol (a descendant of Fieldingâs PhD work) and just launched its Testnet â which brings blockchain into the fold. Fielding talked with Jeff Wilser about AI Swarms, how blockchain snaps into the puzzle, and shares why all innovators â not just tech giants â âshould have the right to build machine learning technologies.â â Jeff Wilser Read more.
In Other News
Web3 lacks a dedicated memory layer, making its current architecture inefficient and difficult to scale. Random Linear Network Coding (RLNC) offers a solution by enhancing data propagation and storage efficiency in decentralized systems. Implementing RLNC can address Web3’s scalability challenges by optimizing memory and data access without compromising decentralization, says Muriel MeĚdard, co-founder of Optimum. Read her op-ed here.
Ripple, an enterprise-focused blockchain service closely tied to the XRP Ledger (XRP), said on Wednesday it has integrated its stablecoin to the company’s cross-border payments system to boost adoption for Ripple USD (RLUSD). Select Ripple Payments customers including cross-border payment providers BKK Forex and iSend are already using the stablecoin to improve their treasury operations, the company said. Ripple plans to further expand the token’s availability of its token to payments customers. RLUSD reached a $244 million market capitalization, growing 87% over the past month. â Kris Sandor reports.
Regulatory and Policy
The U.S. Securities and Exchange Commission has dropped or paused over a dozen ongoing cases (and lost one) since U.S. President Donald Trump retook office just over two months ago and appointed Commissioner Mark Uyeda as acting chair. Here is a rundown of whatâs left on the SECâs enforcement docket. â Nik De reports.
Calendar
April 8-10: Paris Blockchain Week
April 30-May 1: Token 2049, Dubai
May 14-16: Consensus, Toronto
May 20-22: Avalanche Summit, London
May 27-29: Bitcoin 2025, Las Vegas
June 30-July 3: EthCC, Cannes
Oct. 1-2: Token2049, Singapore
President Trump to Order ‘Reciprocal Tariffs’ to Begin at Midnight
In a Rose Garden ceremony on Wednesday, President Trump said he intends to immediately sign an order for “reciprocal tariffs” to be levied against U.S. trading partners.
“Our country and its taxpayers have been ripped off for more than 50 years but itâs not going to happen anymore,” said Trump, adding that the tariffs will begin at midnight.
The first specific tariff announced at the ceremony was a 25% levy on all foreign-made autos.
The price of bitcoin (BTC) has been volatile as Trump speaks, but is currently trading at $87,300, up very modestly from its price prior to the ceremony.
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Hbar Foundation Teams Up With OnlyFans Founder for TikTok Bid
The HBAR Foundation has teamed up with the founder of internet subscription site OnlyFans, Tim Stokely, in a bid to acquire Chinese social media app TikTok.
Stokely and the HBAR Foundation submitted a bid last week to the White House through the formerâs new family-friendly crowdfunding company, Zoop.
“Our bid for TikTok isn’t just about changing ownership, it’s about creating a new paradigm where both creators and their communities benefit directly from the value they generate,” Zoop co-founder RJ Phillips told Reuters.
The HBAR Foundation is the entity behind Hedera (HBAR), a proof-of-stake smart contract platform that launched in 2018. With a market capitalization of $7.2 billion, HBAR is the 22nd-largest cryptocurrency in existence as of press time. The coin only reacted mildly to the news and is up 1.5% in the last 24 hours.
The duoâs bid for TikTok isnât the only one on the market. Online retailing giant Amazon (AMZN) is also looking to acquire the platform, according to The New York Times.
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How to Calculate Taxes in Operating Cash Flow
Reviewed by Lea D. Uradu
Being able to assess a company’s operating cash flow (OCF)âand how that is impacted by taxesâis an important skill in evaluating a company’s overall health.
The operating cash flow is vital when considering whether the company can generate enough positive funds to maintain and grow its operations. If not, the company may require external financing.
Shorter turnover rates in inventory and shorter times for receiving funds increase a business’s operational cash flow. Items such as depreciation and taxes are included to adjust the net income, rendering a more accurate financial picture. Higher taxes and lower depreciation methods adversely impact the operational cash flow.
Key Takeaways
- Operating cash flow reveals the cash that a company generates through its business operations.
- This is an important indicator for gauging how well a company can continue its operations and grow.
- Calculating taxes in operating cash flow involves reverse-engineering the following equation: Operating Cash Flow = EBIT + Depreciation – Taxes where EBIT refers to earnings before interest and taxes.
Understanding Operating Cash Flow
Operating cash flow is a metric used in financial analysis representing the cash generated or used by a company’s core business operations. It provides insights into a company’s ability to generate cash from its day-to-day activities, excluding financing and investing activities. By focusing solely on cash generated from operations, OCF offers a clearer picture of a company’s liquidity, financial health, and ability to sustain its operations over the long term.
Investors, lenders, and analysts use OCF as it tells part of the story of a company’s health. A positive OCF indicates that the company is generating sufficient cash from its core operations to cover operating expenses. Conversely, a negative OCF suggests that the company may be experiencing cash flow issues. By understanding and monitoring OCF, stakeholders can better informed decisions based on cash implications of a company.
Components of Operating Cash Flow
Before we look more specifically at taxes, let’s take some time to look at operating cash flow at a high level. The calculation of OCF starts with net income, which is the profit a company earns after all expenses, taxes, and interest have been deducted from total revenue. Unlike net income, which is calculated on an accrual basis, OCF adjusts for non-cash items and changes in working capital to provide a clearer picture of cash availability.
One key component of OCF is adjustments for non-cash items. These are expenses or revenues reported on the income statement that do not involve actual cash transactions. Common examples include depreciation and amortization which account for the wear and tear of tangible and intangible assets, respectively. Although these expenses reduce net income, they do not impact cash flow since no cash is spent. By adding back depreciation and amortization to net income, OCF adjusts to remove the effect of these non-cash charges.
Changes in working capital are another essential component in calculating OCF. Working capital refers to the difference between current assets and current liabilities, representing the short-term financial health of a company. Adjustments to OCF include changes in accounts receivable, inventory, and accounts payable. For example, an increase in accounts receivable indicates that more sales were made on credit, reducing cash flow. Conversely, an increase in accounts payable suggests that the company is delaying payments to suppliers, which temporarily boosts cash flow.
How to Calculate Taxes in Operating Cash Flow
The operating cash flow indicates the cash a company brings in from ongoing, regular business activities. It can be found on a company’s annual or quarterly cash flow statement. Simply, it is Total Revenue – Operating Expenses = Operating Cash Flow.
Taxes are included in the calculations for the operating cash flow. Cash flow from operating activities is calculated by adding depreciation to the earnings before income and taxes and then subtracting the taxes.
A company’s EBITâalso known as its earnings before interest and taxesâconsists of its net income before income tax and interest expenses are deducted. Once a company’s EBIT is known, multiply that by the tax rate to calculate the total tax paid. Finally, to calculate operating cash flow, use the following equation: EBIT – tax paid + depreciation.
In terms of how to calculate OCF with the tax rate already known, the equation above can be simply reverse-engineered, solving for the unknown variables.
Impact of Taxes on Cash Flow
Proper tax planning is important since it can impact a companyâs cash position. Companies can assess their overall tax situation, considering income tax, indirect tax, and tax benefits.Â
Tax policies can also impact how businesses depreciate capital assets. In this way, faster depreciation can theoretically reduce the user cost of capital and increase the cash flows of companies.
OCF and Deferred Tax Assets
Deferred tax assets represent potential tax benefits that can reduce future tax liabilities and increase cash flow. For example, if a company has net operating losses or unused tax credits, it may be able to offset future taxable income, resulting in lower tax payments and higher cash flow. On the flip side, deferred tax liabilities represent future tax obligations that will require cash outflows, reducing cash flow in the future.
Deferred tax assets and liabilities are recorded on the balance sheet and adjusted periodically to reflect changes in tax laws, rates, and expectations about future profitability. When calculating OCF, adjustments are made to account for changes in deferred tax assets and liabilities. For example, Increases in deferred tax assets are added back to net income, as they represent future tax benefits that will enhance cash flow. Meanwhile, increases in deferred tax liabilities are deducted from net income, as they represent future tax obligations that will reduce cash flow.
Importance of OCF After Taxes
Investors find it important to look at the cash flow after taxes (CFAT), which indicates a corporation’s ability to pay dividends. The higher the cash flow, the better the company is financially, and the better positioned it is to make distributions. Income the company has from outside of its operations is not included in the operating cash flow. Any dividends paid and infrequent long-term expenses are often excluded from this calculation as well.
One-time asset sales are also noted, as they inflate the cash flow numbers during the relevant time period. Investors look at the balance and income statements to gain a better knowledge of the overall health of a company.
OCF and Tax Planning
Companies may leverage OCF to better plan for tax implications in an attempt to reduce what it may owe in the future. One key strategy is to defer taxable income and accelerate deductible expenses whenever possible. By delaying the recognition of income until future periods and accelerating expenses into the current period, businesses can potentially reduce current tax liabilities.
Another strategy is that businesses may choose to defer the receipt of income or delay the sale of assets until tax rates are lower, thereby reducing their tax obligations and preserving cash flow. Such strategies like this may only be possible if a company best understands not only its current operating cash flow but it’s future or forecasted operating cash flow. This ensures that the company does not risk operations in favor of potential tax savings.
Does Operating Cash Flow Include Taxes?
Yes, operating cash flow includes taxes along with interest, given that they are part of a business’s operating activities.
Is Operating Cash Flow the Same As EBIT?
Operating cash flow is different from earnings before interest and tax (EBIT), but both are metrics used to assess a company’s financial health. Operating cash flow is the cash generated from a company’s core business activities. By contrast, EBIT shows a company’s profitability by looking at its net income before expenses, interest, and tax have been deducted. EBIT is also used to analyze the performance of a company’s core business.
What Is the Formula for Calculating Taxes in Operating Cash Flow?
Calculating taxes in operating cash flow requires reverse-engineering the following formula: Operating Cash Flow = EBIT – tax paid + depreciation. You would then solve for unknown variables, assuming the tax rate is known.
The Bottom Line
A company’s operating cash flow can be significantly impacted by higher taxes and lower depreciation methods. In this way, it can be important to calculate the taxes in operating cash flow to get a clearer picture of how they impact a company’s overall financial situation and its ability to pay dividends.
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Wall Street Giant DTCC Unveils Tokenized Collateral Platform in Crypto Push
The Depository Trust and Clearing Corporation (DTCC), the worldâs largest securities settlement system, is pushing deeper into crypto with introducing a blockchain-based platform for tokenized collateral management.
Collateral is a fundamental part of risk management in financial markets, ensuring stability amid market fluctuations. However, traditional systems often suffer from inefficiencies due to fragmented infrastructure and lagging settlements.
DTCC said its new platform seeks to address these challenges by tokenizing collateral on blockchain rails, allowing for real-time transfers and automation through smart contracts, according to a Wednesday press release. The platform runs within DTCCâs AppChain ecosystem, which was developed on top of LF Decentralized Trustâs Besu blockchain.
Read more: Why Asset Tokenization Is Inevitable
“Collateral mobility is the âkiller appâ for institutional use of blockchain,” Dan Doney, chief technology officer of DTCC Digital Assets, said in a statement. “By using smart contracts to automate the full range of collateral operations, we enable complex trade execution across markets in real-time at any time, even in volatile conditions.”
“This platform is unique in that weâve created something thatâs more open, flexible, dynamic, and comprehensive than any previous digital collateral initiative,” said Nadine Chakar, global head of DTCC Digital Assets.
The initiative comes as tokenization of traditional financial instruments such as bonds, funds and other traditional investments has become one of the hottest use cases for blockchain technology. Multiple financial heavyweights like BlackRock, CME Group and Fidelity have thrown their hat in the ring pursuing benefits such as operational efficiencies, speedier settlements and increased transparency compared to using traditional financial plumbing.
DTCC will showcase the platformâs capabilities at the “The Great Collateral Experiment” event on April 23, where industry participants will test how tokenized assets can be mobilized across markets. The company said it also plans to engage with regulators and industry leaders to establish global standards for tokenized collateral.