Is DRIP Sustainable? (2024)

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“My views no longer reflect what’s represented in this article. I got it wrong and was not capable of predicting which direction the leadership would steer the community. The focus shifted towards the failed/lackluster Animal Farm v1, v2, and at time of this writing, rebranded to Black Cube Finance for AF’s 3rd iteration.

The leadership has given up on DRIP and is evident by the 1% daily Faucet being discontinued. The tokenomics were far too inflationary with no solid location to lock up tokens. These Bankroll Flow clones plaguing DeFi have all failed, and I have since discovered financially engineered projects that learned from Drip and Flow’s mistakes.

The DRIP token is now in the community’s hands, and with no Faucet to inflate supply, it’ll be up to others to build utility for the token. NFA and DYOR, but be careful, there are whales that gamed the referral network, creating massive supply of the token for themselves to eventually dump. Stay vigilant.” ~ SK CryptoK

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Short answer is “yes.” Written by: SK CryptoK, and edited by Cryptozoa.

Many questions get asked regarding the sustainability of DRIP. How can 1 DRIP become 3.65 DRIP in a year? Or even 30+ DRIP when compounding? Where did those extra DRIP come from, the magic fountain?

It essentially boils down to every and all BNB that purchases DRIP goes into the liquidity pool of the Fountain Page, where you’re given your DRIP token. The Fountain (swap) page is a fork of Pancake Swap where liquidity is held. The platform then incentivizes you to “stake” your DRIP token into the Faucet page for 365% APY, so when you stake/deposit it into Faucet, you immediately recirculate 90% of those DRIP back into the Fountain liquidity, while the other 10% goes into the tax wallet solely to pay out everybody’s 1% rewards. When those DRIP tokens from the 90% Faucet stake goes back to the Fountain, the DRIP value locks in and holds. So when new people purchase DRIP, a “credit” is essentially issued to that buyer. If they sell it immediately, that’s BNB subtracted from the Fountain pool, dropping the price. However, if they “stake” it in Faucet, that “credit” is returned back to the Fountain.

Make sense?

This system reduces the initial supply of 1,000,000 DRIP offered, and then recycles it. This increases the BNB/DRIP ratio because the dollar amount of BNB pool holds firm as the initial DRIP supply offered was reduced. The liquidity pools for Fountain and Reservoir are also paired together to establish the “floor” price of DRIP, therefore the overall supply will never be allowed reach ZERO. As we approach that floor, the recycled credits of existing DRIP will keep this platform running indefinitely, and price to rise. If the DRIP token wasn’t recycled and credited, the ratio would be more of a 1:1, and we would follow BNB price up/down more closely. The dev has the power to truly “burn” and “destroy” the token to raise price even further, and has done so only for about 1,700 DRIP total at the beginning, but found a better use for that DRIP for competitions, etc. Future burning won’t occur unless necessary.

The platform is sustainable because:

1) The Faucet. People NEED to stake into the Faucet. The whale that tanked the price recently did NOT stake, so held their token and traded it when he/she bought low, and sold high. THIS STYLE OF TRADING IS NOT HEALTHY and kills platforms. If everybody was purely trading their DRIP without staking, or if the Faucet allowed people to simply pull out their deposit amount at any given time instead of a 1% drip, then the price would tank further. The Faucet is the greatest incentive and use-case for DRIP token and should primarily be used there.

2) Taxes. Think about it, you get taxed 10% everywhere. Deposits -10%, Claims — 10%, Sells — 10%, Airdrops — 10%, Transfers (from one wallet to another) — 10%, Hydrates — 5%, etc. These all go into 1 central pool to pay out everybody’s 1% a day, and because the incentive is to compound instead of sell, that’s more and more DRIP being taxed at 5% AND the other 95% getting recycled the moment your Available 1% goes into your Deposit. The math of the site is designed to pay for itself so long as majority of the folks stay within the Faucet, which is your greatest incentive for DRIP to climb to new heights.

3) The Minter. This is designed to NEVER need to kick in. The Tax Vault is enough to cover everybody’s “sells” in a day. There are 1 million DRIP tokens as a “soft cap” and it designed to stay that way, but when the Minter kicks on periodically, we will be above 1,000,000 DRIP. Also note, if the Minter stayed on 24/7, then YES that would be inflationary and DRIP price would go down, however, that won’t be the case.

4) Whale Taxes. Anybody that lets their 1% build up SO high that the amount they are about to sell reaches certain thresholds of the total supply (1M Tokens) they get taxed.

For example, if somebody tries to build up and sell out 50,000 tokens, that’s 5% of the total supply, and falls into the >=5% Whale Tax of 25%, meaning, when they claim, they’ll automatically get hit with the 25% tax of their available amount IN ADDITION to the 10% claim tax, and then when they go to sell, there’s an additional 10%, so theoretically they are paying approximately 45% in taxes, while only profiting off some 55%.

5) Max Payout Cap. Last, but not least, the Max Payout Cap of 100,000 DRIP tokens. YES, your wallets ends at 100,000 DRIP, so your profits from this platform STOP once your DRIP Deposit amount reaches around 72,602, assuming you’ve done NOTHING but hydrate, and even less by the amount of DRIP you’ve been claiming.

Why that number?

because 100,000 DRIP is 365% of 27,397 DRIP, so even though your Max Payout UI stopped moving above 100,000 DRIP, your deposit is allowed to keep growing to 72,602 theoretically, but you shouldn’t really hydrate anymore at that point, and just start claiming out for the next 300+ days and putting most of it into a NEW wallet.

Keep in mind though that when you claim more than you’re hydrating, you are dropping your Net Deposit Value (NDV) down and when it reaches 0 or below, you are no longer in “good-standing” and are no longer eligible for round-robin rewards from your downline, but you can still “claim” out with no issue when your NDV is 0 or below. Just be sure to strike a balance of hydrating and claiming until your wallet is done.

So remember, start a new wallet WELL before you reach these limits and airdrop to yourself. The Max Payout also keeps the DRIP inflation from reaching crazy numbers into the billions of coin, which would send the Minter into overdrive printing new DRIP. People with large downlines would be able to hit crazy heights well above what’s sustainable if EVERY wallet had NO limit building up into the millions and billions of DRIP.”

Thank you SK CryptoK for the article! These were his thoughts from a discussion he and I had in his telegram channel. Please visit his Youtube channel at: