Welcome to this post, where we are going to see how drip community works, a platform that has become very popular in the last few months.
If you want to know more about this platform, stay until the end to see if it is really a good option or not for you. Drip has a system that is somewhat different and new to what we have seen on other sites.
What is Drip
Drip is a low-risk, high-reward contract that works similarly to a high-yield certificate of deposit. Participants can participate by purchasing drip on the platform’s exchange page, joining another user’s drip team (minimum requirement of 10 drip) depositing drip into the faucet contract earning a consistent daily return of 1% of their drip (365% max payout) passive.
Participants can also increase their earnings through regular deposits, rolling rewards, as well as team-based referrals. Unlike many other platforms that promise a constant daily % return, the faucet contract cannot be drained and will always be able to provide the amount of drop that has been rewarded.
Basically we can place our Drip tokens in the faucet and receive 1% every day, getting a total of 365% annually. Although what we place in the faucet is going to be burned and we will not have access to it. So, after 100 days, we should recover the totality of what we have placed in drip. In addition, drip has an incentive system to invite friends and to use the faucet you will have to do it through an invitation or place an address to join a team. Without a team you will not be able to place your drip and receive that %. If you do not know anyone, you can indicate support marketing and development and be in the team of the platform itself.
The team system gives rewards to the person who invited you and you must keep another token in your wallet, in this case bR34P to get rewards from the people you invite. The more bR34P you have, the more you can get in the number of people you invite. If for example you have 1-2 bR34P, you will only get rewards from the first invitees, if you have more, you will also get rewards from inviting more users.
Also, the drip token has a 10% commission when you want to sell it, so this commission goes to the token reserve in order to pay that 1% daily.
Before seeing more aspects of how it works, mention that drip has many pyramidal factors and of being a ponzi system, so I recommend you to understand it very well and know the risks that you expose yourself by placing your money here. Although we will develop this later.
The swap or fountain is very simple, here we can exchange our BNB for Drip and then place it in the faucet. Also going to sell drip we can sell it with the rewards that we have been getting if you have drip in the faucet, but always considering the 10% tax or commission that you must pay each time.
Although you can also buy or sell Drip in pancakeswap, in many occasions the price is very different and you will end up getting less Drip than exchanging it in the swap. So I recommend you to use the swap to buy with BNB drip if you want to use this platform. It is very simple and works like any other swap. You indicate the amount of BNB, click on buy and confirm the transaction in your wallet.
This is the main part of the platform, and where we will deposit our Drip with a minimum of 1 drip to receive 1% daily. Although before we will have to go down and indicate an address in buddy to join a team. If you do not know anyone who uses the platform, you can search on Google or youtube for people who have a team, or simply click on support marketing and development to join the platform team.
Once you join a team, you can go to deposit and indicate the amount of Drip you want to place, with a minimum of 1. Here, you will also pay a commission of 10% on the drip you want to deposit. So you will actually receive 1% every day on the 90% of drip you place.
Once you have indicated the drip, click on deposit, confirm in your wallet and that’s it. After a while you will be able to see the Drip rewards you are accumulating and click on claim to claim them. You can also click on hydrate to place the rewards directly in the faucet and thus increase the amount received each day, by compounding your investment. In this case, by placing your earnings back into the faucet you do not have a 10% commission per deposit, but you will only pay 5% each time you click on hydrate instead of claiming and selling your Drip.
Here, you will be able to place your BNB in the form of a BNB/DRIP LP Token to get an annual % by contributing liquidity to the protocol. In this case, you will receive another token called Drops that represents the % you have of the liquidity pool, and depending on the amount you have you will receive your rewards.
Every time you deposit BNB for Drops or sell your Drops for BNB there is also a 10% commission. This 10% commission is distributed in 2% for the people who have Drop in BNB, 5% is distributed to the reservoir pool that pays 2% of its total balance among those who have drop and the last 3% is blocked for the Drip liquidity.
Is Drip a Ponzi?
As we have mentioned before and after seeing how it works, we are going to cover one of the most common and usual doubts. It is possible that you have discovered Drip through a youtube channel, twitter or someone who has recommended the platform. Or by finding it on platforms like coingecko or coinmarketcap being a trending cryptocurrency.
The main difference that Drip has from other platforms or projects, is the team or friend system, which has made the platform so popular, by encouraging users to invite new users to receive rewards. If this is coupled with the large amount of taxes you pay on each operation, minus the swap, it is very clear that the system is maintained by the entry of new users. Besides having no real use at present other than to get more Drip. The moment new users stop coming in and they run out of reserves, as they mention they will create more Drip tokens to ensure 1% daily to users, but all this does is create more inflation and selling pressure towards the drip token, and therefore its price continues to fall.
These systems work well at the beginning when your price goes up and new users come in, but the moment so many new users stop coming in and people want to sell their tokens, the price drops.
Remember that you get 1%, which is actually less, in Drip. So if the price of Drip drops, you’re actually getting less than 1% of your investment that you put in, if you look at its value in dollars or another currency. So keep this in mind.
Also, the 1% daily that you receive is not really like that, because first you will pay 10% to deposit, so this 1% daily will be in respect to the 90% that you have deposited in the faucet. And later if you want to sell this 1% daily that you have achieved, you will also pay 10%, which makes it really a much lower %.
The system by burning the tokens you deposit, and only give you 1% on the 90%, has a lot of liquidity of the token where each deposit will have about 100 days to have in circulation the same amount of Drip, which makes the system can be prolonged in time, by burning at the beginning the tokens you deposit, giving much more margin to continue to maintain liquidity.
Finally, the referral or team system, where you receive rewards for inviting friends and from friends who are invited by others in your team, creates a pyramid system. With incentives to invite you by receiving rewards for doing so, in addition to airdrops that they make between team participants to further incentivize them to use the platform.
I hope it has helped you to know how drip works and everything you need to know about this platform. Remember that if you do not have an account with binance, you can create one just below.