Drip Network - Fab or Scam? - Flint

Updated on 8 October, 2022 6:27 PM
1 min read

Jump to:

    Hey, crypto enthusiasts! This blog brings information about a yield-generating platform in the crypto space. So, let’s start begin with understanding the DRIP network and how it generates yield. 

    The DRIP network functions on its principle theory of low risk and high rewards. Users purchase drip from the platform’s swap page and join the drip team of other users. The faucet claims its contract can not drain and will always provide the yield that has been rewarded. It is built on the Binance Smart Chain, and DRIP tokens can be purchased using BNB (Binance Coin). DRIP tokens are the native tokens of the platform. It boasts various features such as being built on a decentralized blockchain, censorship resistance, deflationary, and rare. 

    How does Drip generate yield?

    So now that you are familiar with the platform, let’s try and understand the method by which the DRIP network generates yield. Its yield generation rests on the principle of paying 1% on your investment every day. Users usually get two options to earn rewards on Drip.

    Method 1: Pull out the amount daily and receive a 1% return on your DRIP token for that day. This method of earning 1% interest on your investment is passive but a great way to compound your money over time.

    Method 2: Recompound or “hydrate” your earnings by keeping the invested amount with the DRIP network and compounding 1% interest against the new amount accumulated. By hydrating, you can see 3678% APYs (Annual Percentage Yields) by the end of the year.

    Now, you are probably wondering how does the DRIP network funds its rewards, right?
    Well, the network charges a 10% tax on all transactions, be it transfers, sells, airdrops, claims, or deposits. Hydrates have a transaction fee of about 5%. All these rewards go into one central pool to pay out 1% interest daily to all investors. 

    In case of a situation where the current tax pool cannot pay out the rewards to every user, a new drip will be minted to ensure that at least 1% is paid out. However, the system is built so that the probability of a new drip being minted is very low. DRIP claims to be the only deflationary daily ROI (Return on Investment) platform, as the drip is regularly locked in the liquidity pool through the reservoir contract. Those deposited in the faucet are continuously sent to a burn address. Deflation and tokenomics of scarcity always keep the price of the DRIP tokens high.

    Getting started with Drip

    After researching the platform, if you decide to invest in DRIP, here is a quick guide for you to get started with investing on the platform:

    Step 1: Purchase BNB coins from cryptocurrency exchanges such as Kucoin.com, Bithumb.com, Binance.US, FTX.com, and Binance.com. Store these coins in your wallet. Compatible wallets supported on the platform are Binance Chain Wallet, WalletConnect, and Metamask.

    Step 2: Exchange BNB for DRIP on the Drip Fountain.

    Step 3: Deposit drip on the Faucet Page.

    Step 4: Deposit at most minuscule 1 DRIP, and you are all set to earn rewards on your investment.

    Risks involved

    People who have been investing long in crypto have started feeling the scheme of 1% return a day is no less than a fraud. As per an article by Liam M, it is compared to the Ponzi scheme, a form of fraud that attracts people to the platform due to its seemingly high returns and pays profits to former investors through funds gained from recent investors. The scheme is known to maintain an illusion of a business for as long as new investors are contributing funds. The minute investors demand full repayment; the platform will fail to abide by its principle.

    Within the DRIP network, the early investors are essentially gaining rewards on the money invested by the new investors. It is believed to have no actual usage or services. Knowing the risks involved, please be mindful about choosing the right yield-generating platform if you are just starting in the space.

    Like this article? Spread the word

    Subscribe to our

    Receive timely updates on new posts & articles about crypto world.