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Everything to know about PulseChain

David Melbourne avatar
Written by David Melbourne
Updated over a week ago

What is PulseChain?

PulseChain is a blockchain project initiated by Richard Heart, who was also the founder of the HEX cryptocurrency. The aim of PulseChain was to create a new blockchain network that would incorporate several features and improvements compared to existing blockchains, particularly the Ethereum network.

Some of the key features that were envisioned for PulseChain included:

  1. Energy Efficiency: PulseChain aimed to implement a proof-of-stake (PoS) consensus mechanism, which would consume less energy compared to the proof-of-work (PoW) mechanism used by Ethereum. This approach was expected to reduce the environmental impact associated with blockchain mining.

  2. Lower Transaction Fees: PulseChain intended to offer lower transaction fees compared to Ethereum, making it potentially more accessible for users to interact with the network.

  3. Compatibility: PulseChain aimed to be backward-compatible with the Ethereum Virtual Machine (EVM) and smart contracts. This compatibility would allow developers to port their existing Ethereum projects easily to the PulseChain network, thereby expanding the ecosystem.

  4. Airdrop of Tokens: PulseChain proposed an airdrop mechanism through which holders of certain cryptocurrencies, particularly Ethereum, would receive a proportionate amount of PulseChain's native token called PULSE. This airdrop was intended to incentivize participation and bootstrap the network's adoption.

PulseChain and its tax implications

The first thing that you need to consider if you find that you have assets on PulseChain, is to ask yourself do you want these tokens and the tax implications that come with accepting them. If the answer is 'no' then you can just not import this wallet as it was not created or initiated by yourself.

If you do decide that you wish to claim these assets, then you should import this wallet and accept that you may have to pay Income tax on the new tokens you have received. Not every tax jurisdiction has the same rules around receiving free tokens (e.g. Airdrops, Chain Splits), so please check with your accountant before making your decision.

Known PulseChain issues

One of the main concerns regarding the launch of this blockchain is related to point #4 mentioned earlier. PulseChain claims that if you hold certain assets on the Ethereum blockchain, you will receive an identical copy on the PulseChain blockchain. However, due to the blockchain's design, there might not be on-chain transactions showing the acquisition of these assets. Consequently, when you eventually dispose of these assets, it can result in "missing purchases".
To resolve this issue, you will need to manually add transactions to show the acquisition of these assets. While there is no precise guidance available, the most suitable categories to select would likely be Airdrop or Chain Split. For more information on how to add manual transactions, please refer to the following article:

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