Forsage partners own smart contracts and by referral , partners earn Ethereum virtual currency. This would be a Schedule C, as it is actively running business, therefore, all their commission paid in ETH is taxable and subject to self employment income.  A partner can use those ETH commission to buy more contract in order to have more commission opportunities. 

I think there is 2 part to this, the commission earned as taxable income, and later on when ETH is converted to dollar, will result in capital gains depending on basis and market value. 

Is my understanding correct? If one individual owns 100 000 worth of ETH, US resident, do they need to file FBAR?