DRIP Network – Exponential 365% ROI – The comprehensive guide

This article is a comprehensive guide to DRIP, how it actually works, how much profit you can make and how long it takes.

Before I took the decision to invest in DRIP (I personally put € 2500), I read tons of articles about it. I needed to understand every bits and pieces of it before I did anything. Unfortunately, many of them are just copies of other articles, they don’t go enough into the details of it, claiming raw profits without taking into account the various taxes that exist in the system in order to make it as sustainable as possible.

I also had to see for myself if I was actually earning 1% of my deposit and if I could get it back and convert it to BNB. It all worked.

I will try to show you how it works and the different ways you can benefit from it. Then it will be up to you to choose which way suits you the best and how much risk you are willing to take.

DRIP

DRIP is a crypto token and runs on the Binance Smart Chain, a smart contract blockchain maintained by Binance.

Being a smart contract, DRIP can be verified (and has already been) as to how it functions, what goes in and what goes out.

Founded by Forex Shark and its team, DRIP is some sort of a sustainable staking solution that gives you 1% interest of your deposit, daily. And that 1% interest, you can reinvest it back in your deposit, making your interests grow exponentially.

It has built-in mechanisms to prevent massive dumping as only 1% can be claimed back per day. There are taxes on every transaction happening inside the DRIP network that help feed the whole system with DRIPS. There is also a mechanism that taxes big payouts (up to 50% !).

This is not just another kind of faucet. It is one that is built around the idea of sustainability for anyone who is willing to wait the necessary time.

The risks

As with any crypto projects out there, there are risks. Yes, you could loose it all !

You could reinvest your interest every day for 2 years only to see that :

• you can’t swap or sell you DRIPs (for whatever reason)
• BNB and/or DRIP price went down to zero
• the whole crypto market becomes illegal in your country and you can’t cash out your profits

These risks are exactly the same as for all other crypto tokens. Bitcoin, Ethereum, Binance, Solana, Cardano… all of them started with the risk that, at some point, nobody would want to (or could) buy them. And that risk still exists today and forever.

They have seen lows and highs but in the end, Bitcoin has multiplied its value by over 6 000 (or over 150 000 if we start from its very beginning when it was traded at € 0.30), Ethereum 4 000…

It’s all possible and it all depends on adoption, which seems to be on the right track and Forex Shark is actively working on it: https://forexshark.medium.com/

Is it a scam ?

No, you actually start earning 1% interest (before tax) on whatever you deposited since day 1. And that 1% is yours.

Also check my other article about whether crypto is a scam or not: Is crypto a scam ? or what is the nature of crypto ?

Is it a ponzi scheme ?

No, not only you start earning your 1% interest from day 1 but you don’t have to invite anyone below you to start earning them.

The basics of DRIP

So let’s get into it. As I mentioned before, DRIP gives you 1% of your deposit, every day. But unlike any other staking contracts, you won’t earn it forever. It has a cap.

And that cap is 3.65 times the current value of your deposit. This is called your maximum payout. You won’t ever be able to claim more than that max payout.

Before going any further, let me introduce a few simple concepts that will help clarify the whole system:

Buckets

The system comprises of several different buckets or bags :

• Deposit: the amount of DRIPs in your deposit. You can’t claim what is there. It is forever “lost” and is only used as a value to calculate your interest.
• Available: where your daily 1% interest accumulate. Whatever is there is available to you to claim or reinvest.
• Claimed: the amount of DRIPs that you have claimed.
• Max payout: the total maximum amount of DRIPs you can ever claim.

Basic example

I will first keep things simple and not introduce the various taxes. We will look at them a bit further.

So let’s say you deposit 5 DRIPs (approx. $450 at time of writing). That goes into your Deposit bucket and cannot ever be claimed back.

After one day, you earn 1% of that deposit : 5 * 1% = 0.05 DRIP.
That 1% goes into your Available bucket and it will keep accumulate there every day if you don’t touch it.

From there you have two options :

• claim whatever is in your Available and it goes straight into your pocket (or wallet)
• or reinvest it in your Deposit

Let’s first see what happens when you claim it

Your maximum payout is 3.65 times your deposit of 5 DRIPs :

5 * 3.65 = 18.25 DRIPs

You won’t be able to claim more than that.

But as you only earn 1% of your deposit every day, how many days will it take for you to reach that max payout ?

18.25 / 0.05 = 365 days

You will have to wait for 365 days until the accumulated interest of your deposit reaches 18.25 DRIPs. Or you could claim that 1% every day, which ever way you choose. Taking into account that claiming induces gaz fees (fees to run the contract)

But that is if you don’t do anything at all and just wait.
But there is another option: you can also reinvest your interest into your deposit. The deposit will grow and when your deposit does, your interest grow as well as your max payout.

The taxes

At this point, it is important to understand that absolutely every transaction on the DRIP network is taxed at 10%. Except for when you reinvest your interest back into your deposit. That is taxed at 5%.

So, in the example above, instead of claiming back the whole interest of 1%, you will actually get 90% (10% tax) of that 1% :

1% * 90% =0.9%

And when you sell your DRIP for BNB on the DRIP liquidity pool, you will also be taxed at 10%. That’s another 10% you take off your remaining 0.9% :

0.9% * 90% = 0.81%

In the end, after 365 days, instead of getting 18.25, you will actually get 14.7825 DRIPS (81% of your accumulated 1%).

Taxes are one of the ways the system tries to maintain its sustainability

There is also a “Whale” tax. It is calculated upon your deposit and is added to the previous taxes. More on that later.

Gaz fees

Running (or calling) a contract on the blockchain has a cost. It is called the gaz fee. For this contract and based on my observations, it is usually between 0.0008 and 0.0015 ($0.4 to $0.8) the transaction (calling a contract is always done within a transaction).

So it has a cost, if you multiply it for 365 days, it can easily reach $200. This needs to be taken into account when you take your decision as how much you invest and for how long.

What happens to my initial deposit ?

As I said earlier, this is forever lost. You will never be able to claim that deposit back, only the interest that come out of it. That value’s only purpose is to calculate your interest and your max payout.

I’m not entirely sure if that deposit is sent back to the pool of available DRIPs in the network or if they are burnt.

Exponential growth

3.65 times your initial deposit in 365 days is nice but you may want more. If time is not too much of a problem for you.

See, the main rule is: you can only claim 3.65 times your current deposit. If that deposit grows then your max payout and interest do as well. And that’s how you will, given some time, be able to make more profits.

Of course, to prevent infinite earnings, that max payout is capped at 100000.

How does that work ?

Simple, all you need to do is to reinvest your interest back into your deposit. And that has a cost. But instead of the usual 10% tax, reinvesting (or hydrating as they refer to) only costs 5%.

It is up to you to reinvest whenever you want. You could do it every minute, every hour, every day or every month. It is all entirely up to you but I suggest doing so every day.

As a quick example, imagine that your reinvest your first 1% (0.05 DRIP) into your deposit :

0.05 – 5% (tax) = 0.0475

Your deposit is now 5 + 0.0475 = 5.0475. The next day you will earn 1% of that new amount 5.0475 * 1% = 0.050475 (instead of 0.05).
You can see how your deposit and interest slowly increase as you reinvest them into your deposit.

When you reinvest, that amount (before tax) also increases your Claimed bucket.

A practical and real example

A picture is worth a thousand words so here is a chart.

The horizontal axis represent the number of days, the vertical one the final amount of DRIPs you will be able to claim if you reinvest your interest every day (24 hours).

This is over a period of 365 days and all amounts are after taxes. Those are the final amounts you will get in your wallet.

You can see that the more days you reinvest, the bigger the final amount is.

If your reinvest your interest every day for 365 days, the final amount of DRIPs you will be able to claim will be 335 DRIPs. That’s 67 times your initial deposit of 5 DRIPs.

Let’s look at another chart, this time over a life span of 2 years.

You can better see the exponential growth in your profits. It truly takes off after 400 days.

After 2 years of reinvesting your interest, you will be able to claim 10466 DRIPs. That’s over 2090 times your initial deposit.

But you can’t claim it all at once. All you did was to reinvest your interest in your deposit. And that deposit is forever lost. But you still earn 1% of interest every day… and that’s how you’re going to do it, 1% every day until you reach your max payout.

After 2 years, your deposit has grown to a value of 4972. 1% of interest of that value is 49.72 (before taxes). That’s what you will earn every day from now on.

To make it simple, I did all the calculations for you, here is the current state of your “buckets” after 2 years :

• Deposit : 4972
• Claimed : 5229 (everything you reinvested was added to that bucket)
• Max payout : 18150

Those numbers are rounded for simplicity.

From there, you can calculate how many days it will take to claim your full amount :

18150 – 5229 = 12921 (what you can actually claim)

12921 / 49.72 = 260 (the number of days)

After 2 years, it will take 260 days to claim your interest and reach your max payout.

Don’t forget that these numbers are before tax. After tax, the full amount would be :

12 921 * 81%=10466

And 10466 * $90 = € 941940

You can either wait 260 days or claim your 1% (or $3622) every day for 260 days. Whatever suits you best.

But I haven’t reached the 100000 max payout cap you mentioned earlier

That’s right. You can still grow your deposit until you reach a max payout value of 100000. Once your reach that value, you can’t go higher.

Based on an initial deposit of 5 DRIPs, you will have to reinvest your interest for 917 days to reach the max payout cap.

If you do so, this will be the current state of your “buckets” :

• Deposit : 27 410
• Claimed : 30 256
• Max payout : 100 000

If you redo the calculation above with the current data, after 917 days, you will be able to claim 50720 DRIPs over a period of 256 days.

50720 DRIPs * $90 = € 4564800 or € $17831 per day.

That’s a lot, I know, but it’s a lot of time also. Many things could happen in between. The price could go up or down.

Whale taxes

In the chart 3 above, around day 800 and a bit before day 900, the amount of what you can claim goes down. This is because of the Whale tax.

Once your deposit reaches a certain value, a whale tax is applied on your interest, whether you reinvest or claim them. It goes as follow :

• below 10 000 : 0% tax
• below 20 000 : 5% tax
• below 30 000 : 10% tax
• below 40 000 : 15% tax
• … until your reach 100 000 : 50% tax

What happens if I deposit a bigger amount

The bigger your deposit, the faster it will go. But the 100000 cap for your max payout still remains. It means that you will always end up earning the same amount if you reach that cap.

This chart shows you what happens if you start with a deposit of 100 DRIPs.

You reach your full capacity at day 601. That’s 300 days less than with 5 DRIPs.

This article is a comprehensive guide to DRIP, how it actually works, how much profit you can make and how long it takes. Before I took the decision to invest in DRIP (I personally put € 2500), I read tons of articles about it. I needed to understand every bits and pieces of it before I…