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  • Writer's pictureMark Bowman

DRIP Network Cryptocurrency re-compounding interest - 8th wonder of the world?

Updated: Apr 7, 2022

Ever thought of turning your hundreds into hundreds of thousands in one year? Yes, everyone has, but the question remains, how to achieve that? All you have to do is find an investment that pays you a 1% return every day. Oh, wait! It already exists and is called The DRIP Network.

An Introduction to DRIP Crypto

DRIP is the latest crypto project created on the Binance Smart Chain providing passive income through smart contracts in Decentralised Finance. It pays a 1% return on your investment every day. You can either withdraw that 1% return or use the 8th wonder of the world by hydrating (compounding) your earnings.

But you get paid in DRIP Tokens and not dollars. This makes your returns sensitive to price fluctuations. So, how is DRIP sustainable? It sounds too good to be true. DRIP works on a built-in tax system which makes it sustainable.

How does DRIP work?

The DRIP community works on a tax system where a certain percentage of tax is deducted from every transaction, including the following:

● 10% tax is deducted from your initial deposit. If you deposit 10 DRIP Tokens in the Faucet, it will show up as 9 DRIP.

● 5% tax is applied on your 1% return if you decide to hydrate it. This means you will get a 0.95% return daily.

● 10% tax is applied if you choose to withdraw your daily return. This means you would be able to withdraw 0.9% of your return.

● 10% tax is applied when you sell your DRIP back into BNB.

● You are charged 50% tax if you move DRIP from one wallet to another.

So, why should you still consider DRIP if so much of the amount is going to drip away into taxes? That's because the taxes are used to sustain the DRIP project and stop anyone from having a large stake in the project.

Let's take an example to understand how you will still benefit irrespective of heavy taxation.

If you were to invest $1,000 in DRIP, you would have gotten 14.55 DRIP with the current rate of $68.72. Your initial balance would be 13.1 DRIP after a deduction of 10% tax. The current price of BNB is $501.63 and the ratio of DRIP to BNB is $0.137.

When you enter all the information in the DRIP calculator, it will show you that you will have 4,000 DRIP after 26.6 months in the Faucet.

If you decide to cash it out:

4,000 DRIP × 0.95% (after 10% tax) = 38 DRIP

Sell 38 DRIP @ $68.72 = $2,611.36

(-) 10% tax on the sale= -$261.136

Net amount received= $2,350 (per day)

The maximum amount one can withdraw is 3.65 times the amount in the Faucet, which is 4,000 DRIP in this example. Hence, if you keep withdrawing until you have claimed it all, you will end up with:

4,000×3.65= 14,600 DRIP

(-) 10% withdrawal tax= -1460

Net amount= 13,140 DRIP

Sell 13,140 DRIP @ $68.72= $902,980

(-) 10% tax on sale= -$90,298

Net amount received= $812,682

Are you looking at those gains you would make with only $1000 of initial investment? This is what you will gain even after those heavy taxes. That's why the DRIP tax system is not a curse on investors. If this gets you excited to become a DRIP community member, use this: referral link.

Final Words

The DRIP Network Cryptocurrency is a great investment project for passive income. You can start by gaining insights into the DRIP network through my articles. However, they do not provide financial advice and are only for informational purposes. One must analyze their risk appetite before they invest in any project.

Know more about The DRIP Network through their whitepaper: Litepaper

Become my buddy: Referral link

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