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Last night was a Sunday evening, and I had that same feeling that I get every Sunday evening, that sinking feeling in the pit of my stomach; work tomorrow!
How many of you get that same feeling? Wishing you didn’t have to drag yourself out of bed, to get ready for a job that you don’t like, to earn just enough money to get by.
On average, an adult will spend over 13 YEARS of their lives at work. That just doesn’t seem right, does it? Who decided that we should have to give away 13 years of our lives just to be able to earn enough to live an ok life!
Well, I’m actively taking steps to free myself from those constraints now, and you should too! I’ve talked about DRIP before, but now I’m going to give you an in-depth explanation of exactly what DRIP is, how it works, what it’s not, and how you can start to benefit from it the way that I have so far.
Personal update
I opened my first DRIP wallet in the middle of November last year with a $200 starting investment. Since then I’ve added a further 2 wallets with $250 investments into each of those.
In my main wallet I have a team of 20 direct referrals, and 41 in total if you include indirect referrals.
My main wallet is currently worth a little over $6800, meaning I am making $68 per day on a wallet that I only invested $200 into in the first place. My total deposits are worth close to $10,000. So my total earnings across all my wallets is $100 per day. At this point, I am making $700 per week, which is basically my total initial investment amount in DRIP, every week.
I have also taken out almost treble my initial investment in DRIP, which means at this point I am totally risk-free. I have used the money I’ve made from DRIP to buy more cryptocurrency, and also to buy a trip to a spa for my Wife’s Birthday.
DRIP is a cryptocurrency that you can stake and earn 1% per day on your investment. The way that it works is that it locks your initial investment into a certificate of deposit (the faucet), and you earn your 1% daily ROI in return.
The total amount you can earn on your deposit is dependent on how you control your account. If you just wanted to add a single deposit, and then claim your 1% per day every day, you would make 365% of your deposit total.
However, if you compound your daily earnings, you can dramatically increase the return percentage, to in excess of 3650% per year.
This means that you can deposit $1000 into DRIP, and in a year's time you can grow your investment to over $36000.
You don’t have to start with $1000 though. You can start with a minimum deposit of 1.12 DRIP tokens. This would currently cost you $120 at today’s prices.
DRIP has a mechanic built into it where a single wallet has a maximum pay-out of 100k DRIP tokens. This means that once you have deposited 27k DRIP tokens, you won't be able to add any more. At this point, you will only be able to claim from your wallet. If you get to this point, you will be claiming 270 DRIP tokens per day. At today's price, that would mean you would be claiming around $30,000 per day. You could do this every day for a year.
How does DRIP pay you out?
DRIP sustains its ability to pay out to users by incorporating a tax on (almost) all transactions. The tax accumulated from these transactions is added to the DRIP tax wallet. This is where users' daily rewards come from.
This tax on transactions is an important difference to a lot of other similar staking protocols, where rewards are paid through inflation instead, making them a lot less sustainable.
The tax cost for most of these transactions is 10%. The only 2 differences are buying DRIP from the platform's own swap page which incurs no tax cost and hydrating (compounding) which costs 5%. All of the other transactions carry a 10% tax and can be seen below.
- Buying from anywhere other than the platforms swap page
- Selling
- Claiming
- Transferring to another wallet
- Airdropping
Absolutely everybody in DRIP pays these taxes. It doesn’t matter whether you have been in since the very beginning of DRIP, or you are only just getting into it now.
What is whale tax?
Photo by Todd CravensUnsplash
On top of the standard tax that everybody in DRIP pays, there is an additional whale tax that platform users pay when their wallets reach a certain amount of DRIP. This whale tax is in place to prevent so-called ‘whales’ from outpacing other platform owners and potentially draining the tax vault. It achieves this by increasing the tax cost as a whale's wallet grows. The whale tax thresholds can be seen below.
- <1%?—?—?—?—?—?—?— 0% tax
- ?1%?—?—?—?—?—?—?— 5% tax
- ?2%?—?—?—?—?—?—?— 10% tax
- ?3%?—?—?—?—?—?—?— 15% tax
- ?4%?—?—?—?—?—?—?— 20% tax
- ?5%?—?—?—?—?—?—?— 25% tax
- ?6%?—?—?—?—?—?—?— 30% tax
- ?7%?—?—?—?—?—?—?— 35% tax
- ?8%?—?—?—?—?—?—?— 40% tax
- ?9%—?—?—?—?—?—?— 45% tax
- ?10%?—?—?—?—?—?— 50% tax
The figure on the left relates to the percentage of the whole supply of DRIP, which is 1 million tokens. If a wallet has equal to or more than 1% of the total supply staked, that wallet will be subject to an additional 5% tax. The standard 10% transaction tax(5% for hydrates) remains the same. Equal to or greater than 2% means the whale tax goes up to 10%, and so on.
How can you earn more?
DRIP has a referral system that incentivizes team building. The important thing to note with this is that when you join DRIP, you have to have a buddy address in order to be able to stake. So everybody is somebody’s buddy.
The referral system works by producing 10% bonuses whenever a person deposits into or hydrates their wallet. It works as a round-robin system, benefitting up to 15 levels above the wallet producing the bonus, but only one person at a time.
So, when you refer somebody to DRIP and they make a deposit into the Faucet, you will have 10% of the value of that deposit (after tax) added to your own deposits. Then the next time that person deposits or hydrates their earnings, another 10% deposit will be produced, but this will go to the next person in the line, one above you. It continues up like this for up to 15 levels.
In order to be eligible to receive bonuses from downlines, a wallet needs to hold a second token called BR34P. The more downline levels a wallet has, the more BR34P is required to be eligible for the extra level bonuses. This doesn’t mean that you need more BR34P for every person you refer directly You could have 100 direct referrals and only need the level one value of BR34P to be eligible for all those wallets’ bonuses.
A second level means that a person that you’ve referred then goes on to refer someone else. That person would be in your level 2 downlines, meaning you would require the second level value of BR34P if you wanted to benefit from that person's bonuses. You can see the full 15 level requirements in the picture below.
If you don’t hold BR34P in your wallet, you can still refer somebody using your referral code. The bonus will just skip past you and go to the next person in line who is eligible. In some cases, the person above you may make an agreement with you to airdrop some or all of the bonus they receive from your referral back to you. See my article on how to get free DRIP
There is no requirement to refer anyone to DRIP. It is something that you can choose to do if you wish. There are plenty of solo players who are happy with their 3650%+ APY each year, and why wouldn’t you be, there’s nothing else like it!
How much money do you need to get started in DRIP?
The best thing about DRIP is that you don’t need bags full of money to get started in the first place. The minimum amount that the faucet will let you stake is 1.12 DRIP tokens. At today's prices that’s only $120.
Here’s the good thing though. Even if you’re starting with the smallest amount allowed, you will still be making some seriously large sums of money in a few years time. It takes around 2 years and 8 months to turn $120 into over $1,000,000 if you compound your earnings daily
Some people like to get ahead of the game and invest more, and that’s fine too. The maximum you could deposit is 27K DRIP, although that is quite a lot of money…
For reference, it takes about 73 days at a time to double your investment in DRIP if you compound your earnings daily. So if you doubled that initial $120 investment to $240, it would take you 73 days less to get to $1,000,000. A $480 investment would mean 146 days less. A $960 investment would take 292 days less (all dependant of the price of DRIP at the time). So you can see that there is a benefit to starting with more if you wanted to. It is important however to only invest what you can afford to risk. That is the same for DRIP or any other investment opportunity.
What is DRIP not?
A question that is constantly asked about DRIP is whether or not it's a Ponzi/Pyramid scheme.
I’ll answer these questions individually.
Why DRIP isn’t a Ponzi scheme
A Ponzi scheme is described by Investopedia as ‘a fraudulent investing scam promising high rates of return with little risk to investors. A Ponzi scheme is a fraudulent investing scam that generates returns for earlier investors with money taken from later investors’.
There are 3 main reasons why DRIP doesn’t fit into this category.
Firstly, DRIP pays platform users from a tax on transactions. The rewards are paid out of the tax vault, and absolutely everybody pays into it. It is not just filled up by new investors in order to pay the old ones. The very first investors pay into it also. The tax even applies to investors who trade DRIP, without ever actually depositing into the faucet. As the early investors wallet’s grow, so too does their tax contribution.
Secondly, DRIP’s revenue isn’t controlled by a single person. Payments are automatically issued via the smart contract, from the tax vault and into peoples wallets. The smart contract can’t be changed, so the money in the tax vault can never be drained by the developers or anyone else.
Thirdly, DRIP actually has utility. It is a stakeable token that pays 1% per day based on deposit value. The value of DRIP itself can change, like any other cryptocurrency, but the actual pay-out of DRIP remains the same. If you have 100 DRIP in your wallet, you will earn 1 DRIP token per day. Value can change, but DRIP’s tokenomics don’t.
The developers of DRIP are working on multiple other partnerships and use-cases for the token, as well as numerous other projects within the ecosystem that help to give DRIP more stability. Such projects include the Animal Farm: a high-yield liquidity staking farm. And a new variable time-lock staking annuity called Piggybank.
Why DRIP isn’t a Pyramid Scheme
According to Investopedia, ‘A pyramid scheme is a sketchy and unsustainable business model, where a few top-level members recruit newer members. Those members pay upfront costs up the chain to those who enrolled them. As newer members in turn recruit underlings of their own, a portion of the subsequent fees they receive is also kicked up the chain.’
The biggest problem with a Pyramid Scheme is that it is designed to continuously reward the person at the top. As more and more people are referred at a bottom level, the person at the top and the people that got in first benefit more and more.
These are the reasons why DRIP is not a Pyramid Scheme:
Firstly, the DRIP referral system does not work to consistently and continuously reward the people at the top. The round-robin system explained in the ‘How can you earn more’ section of this article, works exactly to prevent this.
Secondly, there is a maximum pay-out that a wallet can achieve. Once a wallet's maximum pay-out reaches 100K, that wallet can no longer hydrate, deposit, or receive any bonuses. So people who got into DRIP early might have the advantage of time, but eventually, their wallets will reach maximum pay-out and they will only be able to claim until their wallets are empty.
One of the main things to note about DRIP is that you can succeed as a solo player. You do not need to refer anybody to benefit from the same 1% ROI per day on your investment as everybody else. The referral system is simply just a bonus for people who want to share what they’ve learned with DRIP and make a bonus for bringing new people into the project.
If you’re ready to take the plunge and set yourself on the path to financial freedom, come chat to me in telegram, https://t.me/Joeyatko, I’ll help you to get started : )
How to Start in DRIP
- https://drip.community/fountain, and exchange
- Go to the , and enter a Buddy address section. Consider adding my address for your 0xd417341e83C5C0d9403e03daD023e832810D088f
- Deposit at least 1.12 DRIP (Ensure you have 0.05–0.1 BNB for transaction fees.)
You’re set up on Get ready to receive 1% daily! But, do come back regularly to hit that hydrate/recompound button!
The amount Deposited is not withdrawable. In exchange you receive 1% of that staked amount on a 24 hr basis for the next 365 days, which can be rehydrated/compounded, or claimed.
Disclaimer: Nothing in this article is intended to constitute investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information. Readers are encouraged to perform their own due diligence and research, or consult a licensed financial advisor or broker before making any and all investment decisions. This content is intended for general informational and educational purposes only. Though the author strives for accuracy, the data contained within the article cannot be relied upon. The author may own cryptocurrencies and tokens discussed in the article. The article may contain affiliate links.
