Help me understand this complex scenario

Say you stake your eth directly with a validator and earn rewards. I would assume you owe taxes on the rewards, for example whatever the rewards were worth in fiat on the day you earned them is what your taxes will be based off.

But what if you dont sell that eth for fiat straight away and instead sell it later when the price is lower, that would mean the taxes you owe all of a sudden become a larger percentage of those rewards because the rewards themself are worth less when you sold them.

Example: you earn 1 eth in January when eth is $5000 so you owe $1500 (30%). However you dont sell that 1 eth until december and the price of eth then is $1000, which means you still owe $1500 but only made $1000 from selling it. Making the effective tax rate 150%

So if you stake eth and earn rewards you need to sell the rewards for fiat straight away to make sure you have the money to cover the taxes due.

The other possibility is that you only owe taxes on the rewards when you sell them for fiat but that leaves a huge loophole making staking rewards tax free so long as they are not sold. And I doubt the IRS would allow that.

This means staking rewards are taxed based on their fiat value when they were earned. So you have to sell part of your rewards to pay those taxes and if those rewards were earned when the price of eth was high and you sold those rewards when the price was low your effective tax rate on those rewards could go from 30% to 50% to 70% to 90%+.

That sounds like an absolute nightmare to keep track of and an absolute nightmare to deal with if the price of eth falls.

Am I missing something? or is the only solution that removes this mess to permanently move to a jurisdiction that has zero tax like Dubai?