How I’m Going to Become a Multi-Millionaire with DRIP
TL; DR: Summary of DRIP
Crash Course: The Basic History of Crypto
Decentralized Apps (dApps) and Decentralized Finance (DeFi)
What Is the DRIP Network?
Too Good to Be True? Tokenomic Analysis for Sustainability
How to Sign up for DRIP
Step-by-Step: How to Invest in DRIP Faucet
How to Top Off Gas (BNB Fees) in MetaMask
Is DRIP a Ponzi/Pyramid/MLM Scheme?
Whale Tax Explained
The Round-Robin Referral System Explained
Understanding the DRIP Dashboard & Stats
How to Buy BR34P Tokens
How to Turn Your DRIP Earnings into Actual Cash
Optimal DRIP Strategies for Regular Passive Income or Max Profits
Maximize Profits with Multiple Wallet Strategy
The Risks of DRIP: Is It Sustainable?
BNB Price Crashes
Centralized Exchange Freezes
Doomsday Scenario: What if DRIP’s Price Crashes 99%?
Conclusion: Your Next Steps

How I’m Going to Become a Multi-Millionaire with DRIP

If you were offered either $5,000,000 USD or a penny ($0.01) that doubled in value every day for the next 30 days, which would you pick?

At first thought, $5M might seem like a far better deal, but if you do the math, the penny turns into $10.737M. That’s more than DOUBLE the $5M—an insane $5.737M more!

$0.01 * 2^7 days = $1.28 (Dollar Store, anyone?)

$0.01 * 2^14 days = $163.84 (better but still not much)

$0.01 * 2^21 days = $20,971.52 (exponential growth, baby!)

$0.01 * 2^29 days = $5,368,709.12 (aaand we’ve surpassed $5M, but wait! There’s more!)

$0.01 * 2^30 days = $10,737,418.24!!! ($5.368M gain in a single day!)

The penny’s daily doubling doesn’t amount to much in the first 3 weeks, but in the final days, the amount skyrockets. By the end of Week 2, you’d only have slightly over $163.84. By the end of Week 3, you’d have almost $21k. But on Day 30, you’d gain $5.368M in that ONE single day alone for a grand total of over $10.7M!

That’s the power of compound interest. Albert Einstein once declared compound interest the Eighth Wonder of the World, but the important part of his quote was this: “He who understands it, earns it; he who doesn’t, pays for it.”

So if you didn’t understand compound interest and chose the $5M lump sum, you’d be $5.737M poorer. If you understood, you’d have $10.737M in the bag.

$10M is life-changing money for just about anyone, but earning it is a pipe dream, right?

What if I told you it’s not only possible but extremely plausible? Yup, making $10M in a few years is actually realistic—with the cryptocurrency project known as DRIP Faucet, which earns you 1% daily interest. If you compound that 1% with DRIP, you can turn a small investment—$5k, $1k, or even just $100—into multiple millions in 2 to 5 years.

Too good to be true? Ponzi/Pyramid/MLM scheme? Unsustainable, so time to run for the hills?

Before you hit that emergency eject button, let’s analyze DRIP’s mechanics and the game theory that makes this all possible. No, it’s not risk-free, but it’s low-risk in my opinion. The risk/reward ratio is simply too good for me to pass up.

DRIP even convinced a literal ex-NASA rocket scientist, Dr. Kelly Snook, to invest after she ran extensive calculations. She’s projected to comfortably make 6-figs in her first year of DRIP and 7-figs in her second year (more on her later; her spreadsheet calculator is pure gold).

With compound interest, you barely have to invest anything to achieve true financial freedom and join the one-percenters (the extremely wealthy).

Now, you won’t become a millionaire overnight with $5k or even $50k. It’ll still take years, but single-digit years—not decades—before we can reach 7-8 figures with DRIP.

So what exactly is DRIP Faucet? It’s a low-risk decentralized finance (DeFi) protocol that operates on a cryptocurrency blockchain. Its 1% daily compounding interest mechanism empowers everyday people to realistically become millionaires in a relatively short time (2-5 years).

Intrigued? You can sign up with my referral link so we can both get extra rewards: drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8

TL; DR: Summary of DRIP

The DRIP Faucet is a decentralized finance (DeFi) protocol that lets you earn 1% interest per day on their DRIP crypto token, which you can either claim daily to earn 365% APY or compound (which they call “hydrate”) to create an insane 3,778% APY—and far, FAR more over multiple years.

It’s entirely realistic to turn $1,000 or even just $100 into several million dollars in just 2-5 years, depending on your starting investment. And that’s just in ONE account (called a “wallet” in crypto terms). You can invest a little in as many wallets as you want, which can EACH foreseeably reach several million dollars.

The more you invest in a single wallet, the faster it’ll arrive at the maximum payout allowed, which is the same for every account: 100,000 DRIP tokens (after all of DRIP’s fees/taxes, your actual max payout is closer to 41,670 DRIP, but that’s still worth several million dollars USD at recent mid-March 2022 prices of $60/DRIP).

While such crazy profit sounds too good to be true, the innovative game theory mechanisms and tokenomics built directly into the DRIP smart contract (which is incorruptible because of blockchain’s decentralized nature) actually make such high earnings possible.

Of course, there are some risks, but DRIP has proven itself to be a reputable, sustainable project with over a full year of operations (an eternity in the crypto world, where most projects fail within 1-3 months). It just had its 1-year anniversary on April 22nd, 2022.

The developer, Forex Shark, has a solid track record of creating many long-lasting projects that have many investors wealthy, and he comes off as a transparent, intelligent, and upstanding guy, so the chances of a rug pull are slim (though of course, not impossible).

If you’d like to invest, DRIP requires signing up under someone’s referral link, which they call a “Buddy Link.” You can use my referral/buddy link HERE so we can both receive extra bonuses (you’ll receive lower taxes and free DRIP tokens).

Here’s my direct referral link: drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8

For step-by-step instructions to sign up, check out my “How to Sign up for DRIP” section below.

The referral element of DRIP often triggers people’s “scam radar,” but that’s because they don’t fully understand how DRIP actually works. The core product of DRIP is NOT a Ponzi/Pyramid/Multi-Level-Marketing (MLM) scheme because it offers every investor—even those with no referrals—the same 1% daily compounded interest rewards. If you prefer to invest in DRIP as a single person and invite absolutely no one, you will still earn the same returns promised (1% daily compounded interest).

The referral system is a completely separate system from the core DRIP investment. Every transaction within the DRIP Faucet (such as depositing, claiming rewards, and selling) incurs a tax, which is used to pay investors earnings and referral rewards. Under the referral system, referrers earn a percentage of each referral’s deposit and of the deposits of referrals under them (up to a certain level if the referrer holds enough special BR34P tokens).

But unlike in true MLM schemes, the deposit reward going to your referrer is not split among a long upline of multiple people above your referrer. It only goes to your direct referrer, so the buddy link functions like a typical affiliate link. That’s a common marketing incentive to encourage sign-ups. These referral rewards do NOT affect the core DRIP promise of receiving 1% daily compounded interest whatsoever. Instead, referral rewards only sweeten the deal by helping you earn faster, but not earn more (because everyone regardless of referrals has the same maximum earning potential in DRIP).

Furthermore, anyone who has 5+ direct referrals automatically forms what’s called a Team Wallet, which actually decreases referral rewards by 25%. Signing up under a Team Wallet like mine activates an automatic airdrop (i.e. free gift) to return some of your tax back to your wallet. I have no say in this matter because the DRIP contract forces me to give back that amount to you, which means you’re effectively being taxed 22.5% lower than normal. Thus, signing up under a Team Wallet like mine immediately and continually benefits you because all your future transactions are effectively taxed lower.

It’s completely up to you if you wish to further refer to earn your own referral rewards or not. Your choice does NOT affect your 1% daily compounded interest in any way, so you could just refer no one. Even without referring anyone, you’ll likely be a (multi) millionaire if DRIP lasts a few more years. If some unforeseen black swan catastrophe occurs, you’d still likely profit many thousands (probably 6-figures in a realistic doomsday scenario).

None of this is financial advice, but as a typically skeptical, highly risk-averse investor, I have invested thousands and thousands of dollars in DRIP. I believe DRIP has all the markings of a medium- to long-term sustainable project, which is enough time to become a (multi) millionaire.

Please always do your own research before investing! Reading this article fully would be a good start.

Crash Course: The Basic History of Crypto

Before you can invest in DRIP, you’ll need a basic working knowledge of crypto and decentralized finance (DeFi). You can skip this section if you’re already aware. If not, here’s a little background to get you ready to invest.

I’m sure you’ve heard of Bitcoin (BTC), the first cryptocurrency ever invented. Just like classic cash (called “fiat money”), Bitcoin is a store of value. But what’s so special about that?

Well, money is really a system of trust. In the past, we placed our trust in something tangible, like gold. Later, when we stopped using gold to back our money, we placed our trust in the government instead. Those numbers in our bank accounts have value simply because the government says they do, and we trust the government to honor its word.

But these days, people are losing trust in their governments, so millions of people are shifting their trust to something else—to technology, which is what cryptocurrencies are (technological money).

Cryptocurrency transactions are recorded by computer technologies called blockchains, which are online public ledgers of transactions that anyone can verify. Blockchains are designed to be decentralized, meaning these transactions are validated (in other words, agreed upon) by millions of people, rather than only a handful of central government agencies or banks, which are more easily corrupted.

With millions of participants all reviewing the transactions and coming to a consensus on what truly happened (such as how much money was transferred, when, and from/to whom), corruption is practically impossible. Thus, the blockchain’s decentralized nature creates immutability, transparency, and unhackable transactions, so the benefits of crypto over fiat money are obvious.

But beyond serving as currency, Bitcoin (BTC) has no other practical utility. So along came Ethereum (ETH), the second cryptocurrency in existence, which expanded the use cases for immutable public ledgers. Instead of merely verifying money transactions like Bitcoin, Ethereum’s blockchain also enabled the verification of computer code transactions.

Suddenly, developers could write computer applications (“smart contracts”) that would execute agreements between parties without fear of corruption. People have no choice but to uphold their end of the deal because smart contracts are entirely automated and verified by the decentralized blockchain. Even if someone wanted to break their promise, the blockchain makes doing so impossible.

A smart contract is more than a stated agreement. It’s also its own enforcer, executing the agreement exactly as programmed in the code itself. Since transactions executed by the contract’s code are validated by a massive number of people or computer nodes, the agreement is essentially incorruptible.

For a hacker to corrupt the blockchain, he would need to simultaneously take control of ALL 25,000+ nodes on the ETH blockchain and do so for every subsequent block on the chain forever. While it’s possible (though difficult) to bring down a centralized network like Google or Facebook/Meta, a sufficiently decentralized network with thousands of validators is virtually impossible to take down. That’s why blockchain is considered incorruptible for all intents and purposes.

Decentralized Apps (dApps) and Decentralized Finance (DeFi)

Although ETH pioneered decentralized smart contracts, the idea has since spread to multiple other blockchains, each utilizing different cryptocurrencies like Solana (SOL), Avalanche (AVAX), and more. On these various blockchains, computer developers have created countless decentralized applications (dApps), which are just like normal iPhone/Android apps, except dApps run on blockchains to ensure decentralization.

dApps enable people to do virtually anything from playing video games to financial investing, but we’re here to discuss money, so let’s focus on that. Using the incorruptible nature of blockchain, developers have created numerous decentralized finance (DeFi) protocols that attract many people to invest their cryptocurrencies.

So what’s the difference between investing in crypto and DeFi? Well, technically, crypto is a type of DeFi, since crypto is a digital, decentralized coin.

But when most people say they’re investing in crypto, they mean they’re trying to buy the coin at a lower price and hopefully selling it later at a higher price—the same way people invest in stocks. Crypto trading in this manner is similar to stock trading.

However, many people are scared to invest in crypto because cryptomarkets are far more volatile than stock markets, often changing by 50% or more in mere weeks or even days. This has minted many crypto-millionaires almost overnight, but the high risk scares the vast majority of people from dipping their toes into crypto.

Fortunately, many DeFi protocols offer safer, less volatile investment opportunities that can still achieve the same crazy high earnings as basic crypto trading. These protocols are far more sophisticated than simple buying and selling, so the technical nature and mechanisms confuse and intimidate many people. However, in return, you’ll enjoy incredible gains for relatively low risk.

(Important Sidenote: many DeFi protocols are extremely high-risk ventures, straight-up Ponzi schemes, or scams, but many others are not.)

For example, the low-risk Anchor Protocol allows users to earn approximately 19.5% APY on their deposited money. That sure beats the 0.01% you’re earning in your savings account at the bank, but how does 3,678% APY sound? And it can go far higher than that over multiple years.

That’s what the DRIP Faucet DeFi protocol offers—all with relatively low risk. Now, all things in crypto and DeFi are considered risky by traditional standards, but as I’ll explain, DRIP is among the lowest risk DeFi projects with one of the highest returns. The risk/reward ratio is simply jaw-dropping.

Imagine turning $5k into $25M+. With DRIP, this is entirely realistic. A little ventured for a lot gained, which is why many have deemed DRIP a “low-risk, high return” project.

I know. Your Spidey-sense is still tingling. Sounds too good to be true, right?

I felt the same way too, so I’ve spent 50+ hours researching and devouring everything I could about this project. I’m extremely risk-averse and hate losing my money (even $0.50 parking fees and $0.60 almond milk upgrades at Starbucks bother me to no end), so I needed to be more certain before I plopped down my hard-earned money.

After all my investigation, I’ve decided to make a major investment into DRIP, but read on and you can decide for yourself. As with any investment, do your own research (DYOR)! Nothing on Discerning Finance is financial advice, but whatever you decide, make your decision before it becomes another case of “I wish I’d bought Bitcoin back then…”

What Is the DRIP Network?

The DRIP Network is a collection of DeFi projects founded by an anonymous developer called Forex Shark. This isn’t necessarily a red flag because countless people choose to be anon in the crypto world, given that privacy is part of crypto’s core appeal. Within the DRIP Network, Forex Shark has launched numerous projects like the DRIP Garden and Piggy Bank, but his signature (and, in my opinion, safest and most sustainable) one is the DRIP Faucet, which is the focus of this article.

The DRIP Faucet allows investors to earn 1% daily interest on their deposited money, which can be compounded to insane returns.

You can deposit basically any amount you want into the DRIP Faucet protocol (the current minimum deposit is low, 1 DRIP, which has recently fluctuated between $30-60), which you immediately burn and will never get back.

However, every 24 hours, you will receive rewards of a fixed, non-variable 1% of your deposit (minus the taxes that DRIP charges on every transaction to stay sustainable.)

If you claimed these rewards for one year straight, you’d have received a 365% APY. After around just 100 days, you’d have broken even (assuming DRIP’s price stayed flat), and everything after that is 100% risk-free pure profit. After 365 days, you’d have made 3.65x your initial investment. All of these calculations are pre-tax (DRIP’s taxes, not the government’s income tax), but even after DRIP’s tremendous taxes, you’d still profit handsomely because compound interest is that powerful.

For comparison, the S&P 500 (a stock index of America’s top 500 companies) only earns about 7-10% a year on average. It was 20-30% during the most recent bull run, but as of early 2022, we’re in a bear market that many believe will last for years.

But after one year in DRIP, assuming no price change, $1k can become $3,650 (pre-DRIP taxes), or $10k can become $36.5k (pre-DRIP taxes).

How do you like them apples? Show me a better deal…I’ll wait.

Oh wait, there is a better deal—a far, far, far better one. It’s the DRIP Faucet itself!

Let me explain. You see, while you could make your nice 365% APY by claiming your 1% every day, that’s not how we’re going to play this game. Not at all. Forex Shark designed DRIP to enable COMPOUNDING—the Eighth Wonder of the World, remember?

Instead of claiming your 1% daily rewards, you have the option to add that 1% reward to your initial deposit. Doing so increases your next day’s 1% amount because now it’s calculating 1% on a higher value! If you compound for 365 days straight, you would receive a mindblowing 3,778.34% APY. That means $1k becomes $37,783.43 now (much more than the previous $3,650).

And another thing—who says you have to stop compounding after just 1 year? In 2 years, that $1k becomes $1,427,587.91!

And yet another thing—what if we did this on multiple accounts (called “wallets” in the crypto world)? If you put $1k each in 5 different wallets, after 2 years, each of them has compounded to about $1.43M. That’s $7.138M in total! And we could keep going higher…are you realizing the massive potential here?

After you reach such a high number, you can choose anytime to stop compounding your rewards and instead claim your 1% daily reward. 1% of $1.43M = $14,275.87 per DAY! If you then claimed for 365 days straight, never compounding again, that’d be over $5.2M!

And if you did that with 5 wallets? That’s $26M! I’m retiring early now—how about you?

That’s what I meant when I made the bold claim earlier that $5k can turn into $25M+.

(Note: Keep in mind, the APYs mentioned above are calculated in DRIP tokens, not USD, so if the USD value of DRIP changes, so does your actual APY in fiat money. If the price of DRIP doubles, then your APY doubles to 730%. If the price of DRIP halves, then your APY halves to 182.5%.

However, Forex built in many mechanisms designed to encourage the price of DRIP to generally increase. I’ll discuss those in detail later. DRIP’s price doesn’t always increase, and we’ve actually been on a steady downward trend for quite some time because of external factors, but the protocol itself created DRIP as a deflationary token, which helps drive prices up.)

Too Good to Be True? Tokenomic Analysis for Sustainability

Before you say that’s too good to be true, consider that there must be good reasons why 100,000+ people have invested so far. DRIP was launched on April 22nd, 2021, and about 10 months later in late February 2022, one user even reached the maximum payout permitted by the smart contract—100,000 DRIP tokens per wallet. That’s worth multiple millions when converted into U.S. dollars. And he has multiple wallets!

I’ll admit, these crazy APYs sound utterly impossible. I’m highly skeptical by nature, which is why I missed the Bitcoin train entirely. I initially thought only the early DRIP adopters could possibly receive such massive payouts, which they’d rob from later investors. Classic Ponzi or Pyramid Scheme, right?

Wrong.

First of all, we have to applaud Forex Shark (the DRIP developer) for creating a DeFi protocol that has lasted more than a full year as of this writing in late-April 2022. In the crypto world, one year is considered an eternity.

Most projects fail within 1-3 months, even when the developer wasn’t deliberately scamming investors with a “rug pull” (pulling out the rug from under you by draining all the money out of the protocol into his own private wallet). DeFi projects that last 1+ years are generally considered reputable, proven projects. And Forex Shark has created many of these projects, not just one.

Although he is not doxxed (meaning he hasn’t revealed his real-life identity), his strong track record of multiple successful DeFi projects that have made many people wealthy mitigates concerns about the feared “rug pull.” Of course, a rug pull is still possible but unlikely.

He’s also participated in many AMAs (ask-me-anythings) on YouTube and elsewhere to answer people’s questions. So far, he’s behaving with far more transparency and dedication to the community than most developers.

But good intentions and past track record don’t guarantee DRIP’s sustainability, so let’s look into the mechanics of the project. Forex Shark envisioned a system that would benefit even much, much later investors, not just the early adopters. So I want to analyze why I believe DRIP is a sustainable project at least for the medium term (1-2 more years at least, possibly 3-5+ years).

It has to do with DRIP’s tokenomics, which refers to the economic game theory mechanisms that govern a project’s crypto tokens and how well a project can sustain itself. I don’t know Forex’s detailed background, but the way he’s designed the DRIP Faucet (and indeed, many of his other projects) reveals that he has applied lessons from game theory to help prolong the project’s lifespan.

Too many other DeFi projects simply promise insane APYs only to be forced to reduce rewards by 50-90% in a month or two just to sustain. In some cases, the project entirely collapses in weeks, leaving many investors holding the bag and losing their entire investment. Ignoring the deliberate developer scams, even these legit projects fail because their tokenomics had no chance of surviving greedy human behavior.

Forex seems to have studied the tokenomic shortcomings of these other projects and implemented many innovative safeguards to protect against such catastrophic failures.

So what are DRIP’s protections?

Essentially every transaction is heavily taxed to replenish the rewards pool (also known as the tax vault/pool because all rewards are paid from this pool).
1. Buying your DRIP token from somewhere like Pancake Swap (not recommended) costs 10% of your purchase amount unless you buy it directly from the official DRIP Fountain (https://drip.community/fountain), where that tax is waived. 0% tax. This is the ONLY transaction that isn’t taxed in the DRIP Faucet.
2. Your deposits are immediately taxed 10%, which goes into the rewards/tax pool. So you only begin with 90% as your true starting deposit, 10% of which is paid from the tax pool to your buddy as a referral reward. In effect, a buddy/referrer earns 9% of your full original deposit.
  1. Example: You deposit 10 DRIP into the Faucet. 10% of that, or 1 DRIP, goes into the tax vault, leaving you 9 DRIP as your true starting deposit that your 1% daily interest is calculated from. Your buddy/referral earns a 10% referral bonus on your 9 DRIP (not your original 10 DRIP) worth 0.9 DRIP, which is paid out of the tax pool.
    1. Every time you compound (which is called “hydrate”), there’s another 5% tax on the compounded amount. So you’re not really compounding a full 1% per day. You’re compounding 0.95% (which is still incredibly good).
    2. Every time you claim rewards (DRIP tokens), the rewards amount are taxed 10%, so you really only collect 0.90% rewards per day if you claim them, not the full 1%.
    3. Then when you go to sell your DRIP tokens to convert to cash, you’re taxed another 10% on the amount you’re selling. Combined together with the 10% claim tax, that’s 19% tax on the 1% reward (so you’re really earning 0.81% per day—still very good).
    4. I haven’t seen any other DeFi project that taxes so frequently and heavily, but these high taxes are precisely what keep DRIP sustainable for the medium-long term.

Given how quickly compound interest can reach insane levels, there’s a hard limit of 100,000 DRIP tokens payout per wallet (before subtracting DRIP taxes). This ensures you can’t compound forever and then quickly drain the entire fund for everyone, leaving thousands of people empty-handed.
You cannot earn more than an absolute total of 365% on the cumulative amount deposited, compounded, and airdropped (which means gifted to you by someone else, not to be confused with Apple’s AirDrop. That has special capitalization in its spelling, but a crypto airdrop does not).
1. This means you can’t claim your rewards forever. Once your wallet reaches 3.65x the cumulative amount deposited, compounded, and airdropped, you’re done. That wallet is dead, no longer earning any more rewards.

The previous two hard limits both apply together. Whichever limit you reach first instantly stops your wallet’s earnings. It’s game over (so hopefully you’ve earned millions by then, which I’ll show you how to do with some optimization strategies in upcoming sections). If you’re claimed less than 100,000 DRIP tokens, then the only way to keep earning more is to buy and deposit more DRIP.
There’s a heavy whale tax to slow excessive rewards pool drainage. People with huge amounts of crypto are called whales because they’re massive, like actual whales in the ocean. If your cumulative amount deposited, compounded, and airdropped is 1% or more of the total DRIP token supply (currently 1M tokens, so 1% is 10k tokens), you’ll be charged a progressively higher whale tax when you go to claim your rewards.
This tax, which ranges from 5% to 50%, is automatically applied before you can even press the claim button. And you still have to pay all the other taxes previously mentioned, like a 10% claim tax, 10% sell tax, and 5% hydrate/compound tax.

This whale tax mechanism ensures no one, not even whales, can drain the DRIP funds too fast, which has been the biggest problem with many other DeFi projects. Their early investors accumulate massive rewards, then suddenly all cash out at once, leaving later investors with no rewards left. Forex didn’t want that, so the richer you are in DRIP, the more in taxes you pay! Genius.
DRIP is a deflationary token (which is a good thing in crypto because it drives up prices by limiting or decreasing the token supply). As stated in DRIP’s whitepaper (the official document detailing the project), “Since DRIP [tokens] deposited into Faucet are sent to a burn address and DRIP is constantly being locked in the liquidity pool through the Reservoir contract, DRIP is the only deflationary daily ROI platform.” Currently, there are only 1M DRIP tokens, so as they are burned, the supply decreases, which thereby increases the price per DRIP according to Economics 101. There are other external factors that can lower the price, but at least we have the Law of Supply and Demand in our favor to help boost DRIP’s price.
These tokenomics help support DRIP’s self-sustainability to keep paying out 1% daily. In the unlikely event that the Faucet contract has run out of DRIP rewards, more DRIP tokens will be minted, so we can’t ever truly “run out.” However, putting more DRIP tokens in circulation drives the price lower. Everything has a balance.

You can read the whitepaper in full on drip.community or here: https://drip.community/docs/DRIP_LIGHTPAPER_v0.8_Lit_Version.pdf

Forex calls it a Lightpaper because it doesn’t explain all the rules in extreme detail, which did leave some confusion, so hopefully this article clears the details up.

If you’re math-inclined, Allisa Auld has performed far more intensive statistical analysis than my abilities allow, and she concluded that the DRIP Faucet is likely sustainable for several more years. That’s enough time to make serious money (at least multiple 6-figs, if not 7- or 8-figs). You can read her analysis in full here (use an incognito browser tab if Medium blocks you with a paywall):

PART 1: https://cryptozoa.com/checking-drip-sustainability-using-statistical-analysis-part-1-c48f79390d1d

PART 2: https://cryptozoa.com/checking-drip-sustainability-using-statistical-analysis-part-2-2edd8284117

If you’re still skeptical about DRIP, I’m glad you like to do your due diligence. You’re a lot like me. I encourage you to study all the risks, even small ones, so check out the RISKS section below. It took me considerable time to run my own risk-assessment before I decided to invest myself. None of this is financial advice, so do your own research, make your own decisions, and be okay with the risks.

If you’re ready to invest in DRIP, follow the steps below. First, DRIP’s contract was designed as an invite-only system, so you’ll need to use someone’s buddy link (referral link) to get started.

If you found this article helpful, I’d love if you used my referral link: drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8

Whoa, whoa, whoa…referral?! Smells like a Ponzi/Pyramid/MLM scheme, doesn’t it?

I thought so too at first. But after studying DRIP for 50+ hours, I saw that unlike real Ponzis, DRIP’s sustainability does NOT rely on a constant influx of new investors in order to pay previous investors. The referral link is just an affiliate link that awards both the referrer and referral extra DRIP for free, but it doesn’t affect the core DRIP Faucet earnings.

The most important thing is that you don’t have to invite anyone—not even one person—to earn your full rewards! This referral system is completely separate from the core DRIP product, so whether you refer 10,000 people or 0 people, you will still receive the same 1% daily compounded interest (same as everyone). You literally do not have to participate in referrals whatsoever!

Everyone is required to pay a 10% deposit tax (taken out of your initial investment) that goes directly into the rewards/tax pool. From there, if your referrer is a Team Wallet (which I am), both the referrer and referral receive a split of that deposit: 75% of the 10% deposit tax to the referrer, 25% to the referral (you).

If you sign up under a non-Team Wallet, you’d have to pay higher taxes. But under a Team Wallet like mine, you’d receive 25% of my rewards credited back to your account. That means lower taxes for you, and lower rewards for me (but that’s okay because I make up for that by having more referrals under me).

So you see, referral bonuses are simply icing on everyone’s cake. Why, then, do so many people get the uneasy feeling that DRIP is a Ponzi scheme? That’s because the referral system looks like a pyramid structure, branching down many levels. Higher level referrers can earn a percentage of the deposits from referrals down several layers. The “upline” and “downline” terminology DRIP uses just seems to trigger people’s Ponzi/Pyramid/MLM scheme radar. But after 50+ hours of deep research, I assure you it’s not.

The crucial difference is that in DRIP, you don’t have to refer a single person in order for you to earn your full 1% daily compounded rewards. This is the complete opposite of real Ponzi schemes, where the top people make exorbitant money while the bottom people lose their investment. In real Ponzis, the only way to earn is to refer more people because Ponzi schemes require continual injections of new cash to pay people higher up the chain.

Not so with DRIP! DRIP has sustained its rewards for a year now through the heavy taxes collected on every single transaction (see the TOKENOMICS ANALYSIS section early), NOT the deposits of new referrals.

Could there be a situation where DRIP’s taxes aren’t enough to cover all the rewards? Yes—that’s one of the risks. But in that unlikely case, DRIP will mint more DRIP tokens to keep paying everyone, so the contract can’t actually “run out.”

Of course, minting more tokens creates inflation, which lowers the value of each DRIP token. However, even if that happens, the power of compound interest allows us to earn such a massive number of tokens that even 90% lower DRIP prices can still make you a tidy profit. Someone even did the math; even if DRIP’s price crashes 90%, you’d still make 7,000x your initial investment given enough time.

Keep in mind, for DRIP’s entire lifetime so far (1 year), DRIP has never needed to mint any new tokens, and there’s no signs that we’re headed towards a situation where we might need to. Things could change, but in my opinion, that seems unlikely.

There are 5 advantages of using my referral link: drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8

I offer airdrops (free DRIP) to welcome every new referral on my team, as well as random airdrops and targeted airdrops to members most in need of extra DRIP (so I may reward you for having a lower balance). Many referrers offer nothing. This effectively lowers your deposit tax further (paid by me).
You’ll pay lower deposit taxes, since I’m part of what’s known as a Team Wallet, which means there are 5+ direct referrals under me. The DRIP contract forces Team Wallets to kickback 2.5% of the referral’s starting deposit (that’s after the 10% deposit tax) to the original depositor (you), so instead of paying the normal 10% deposit tax, you’d effectively only pay 7.75%.

You’ll receive this same 2.5% bonus on ALL your future deposits, not just your initial deposit, so you’ll benefit forever by using my Team Wallet buddy link.

You’ll pay lower hydration taxes, since Team Wallet buddy links like mine also kickback 1.25% of your post-hydration amount (equivalent to 1.1875% of your pre-tax hydration amount) to your wallet.

Normally, every time anyone hydrates, they’re taxed 5%, which goes to the rewards pool. Then, if they’re NOT under a Team Wallett, the rewards pool sends their buddy/referral 5% of the post-hydration amount (which is 4.75% of your pre-tax hydration amount).

But if you ARE under a Team Wallet, then you receive a bonus: 25% of your buddy’s hydration reward goes back to you, effectively lowering your hydration tax from 5% to just 3.8125% of your pre-tax hydration amount.

Step-by-Step: How to Invest in DRIP Faucet

I’ll start with a high-level overview, then get into the details of each step below.

Sign up for Binance.us (most U.S. citizens) or Binance.com (most non-U.S. citizens), deposit fiat money, and buy BNB (Binance coin), which is needed to convert to DRIP. You can’t directly buy DRIP with fiat money, at least not yet.
Ensure your BNB is on the Binance Smart Chain network (BSC, also known as BEP20). Do NOT use the Binance Chain (BEP2) or the Ethereum chain (ERC20).
Install the MetaMask extension from https://metamask.io/download/ and create a new self-managed crypto wallet. Record your password and Secret Recovery Phrase (Seed Phrase) with pen and paper, NOT with digital means that can be hacked (no typing, copy/pasting, or screenshots/photos). Safeguard these secrets carefully, or you’ll lose your coins.
Add the Binance Smart Chain (BSC/BEP20) network to MetaMask.
Transfer your BNB from Binance to MetaMask on the BEP 20 (BSC) network.
Connect MetaMask to the DRIP Faucet at drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8 (my referral link).
Exchange BNB for DRIP at https://drip.community/fountain. Manually set a low slippage tolerance like 0.25% to save money (you may need to go higher if you get an error message that says transaction is expected to fail; do NOT waste money on trying to execute then). Make sure to save at least 0.1 BNB to pay for transaction fees. Click BUY.
Import the DRIP token into MetaMask by clicking “Import tokens” and pasting in the following:
1. Token Contract Address: 0x20f663cea80face82acdfa3aae6862d246ce0333
2. Token Symbol: DRIP (this should auto-populate, or type it in)
3. Token Decimal: (this should auto-populate, but if not, type in “18”)
  The warning message is to make sure you don’t input fake tokens, so make sure to copy/paste the above settings exactly, which is for the real DRIP token.

Go to my referral link (referral is required to join) at drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8andclick UPDATE under the “Get a Buddy” section.(Click CONFIRM on the MetaMask pop-up notification to pay the transaction fee of a few cents)

In the Deposit box, enter how much DRIP you want to invest (I’d click MAX). A 10% deposit tax is auto-deducted, or only 7.75% if you used my Team Wallet referral link: drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8
You’re invested! You’ll immediately start earning 1% daily interest on your post-tax deposit and airdropped amount.
Decide your personal compound/claim schedule to fit your financial goals and timeline. Read my OPTIMAL STRATEGIES section below for detailed strategies.
To sell DRIP rewards for fiat money, you need to first convert DRIP to BNB, then BNB to fiat. Click CLAIM (10% tax) on https://drip.community/fountain, which sends the DRIP into your MetaMask. Then on the DRIP site, adjust the slippage tolerance to 0.1% or something small. Type in how much DRIP to sell and click SELL and toggle “Approve DRIP” on—CONFIRM the MetaMask notifications. Selling costs another 10% tax, which keeps the DRIP Faucet sustainable.
Deposit/send your BNB from MetaMask into Binance.us or Binance.com using the BEP20 (BSC) network.
Trade your BNB on Binance for USD, which I suggest keeping at least a portion of inside Binance to deploy for future crypto investments with no waiting period. You could also transfer USD back to your bank now, but if you redeposit USD into Binance, you’ll need to wait 10 days before you can transfer those funds (or newly purchased crypto) out into MetaMask or elsewhere. The price changes in those 10 days can be dramatic, causing you to lose out on opportunities. Good luck!

DETAILED STEPS:

Sign up for an exchange/platform where you can buy the cryptocurrency BNB (Binance coin), which we need in order to swap for DRIP. Unfortunately, there’s no current way to directly buy DRIP with regular cash (fiat money like USD).
For most U.S. citizens, I recommend Binance.us (not to be confused with Binance.com, which is illegal for Americans). In general, Binance.us is the branch authorized to operate in the States, but some individual states have banned it, so check your local laws. To the best of my knowledge, Binance.us isn’t currently allowed in New York, Texas, Connecticut, Hawaii, Idaho, Louisiana, and Vermont.

I recommend Binance.us because it has the lowest fees around (0.075 – 0.1% purchase fee) and also because Binance invented the native BNB token.

Many other countries like Australia, Qatar, and the Philippines allow Binance.com, but check your local laws as these regulations may change anytime.

Here’s my referral link for Binance.us: https://accounts.binance.us/en/register?ref=56181632

And my referral link for Binance.com:

https://accounts.binance.com/en/register?ref=56181632

You’ll have to verify your identity by uploading a government ID (driver’s license, passport, etc.) and possibly a recent (within 90 days) utility bill or bank statement that shows your matching address and full name. This verification process is called KYC (know your customer) to help regulators keep people accountable.

After your identity has been verified, you can link your bank account to Binance and deposit fiat money (e.g. USD) using ACH transfer (up to $5,000 USD daily) or wire (up to $1M USD daily; wire fees are around $30 USD at most banks). There are no deposit fees on Binance.

However, I’ve personally seen a strange bug where Binance rejected a USD deposit for “insufficient funds,” despite there being more than enough funds in the bank. The bank representative verified there were no denied transactions on the bank’s end and that there certainly were enough funds. Luckily, depositing smaller amounts multiple times on Binance until reaching the full desired amount worked.

Detailed instructions for depositing USD into Binance.us for U.S. citizens: https://support.binance.us/hc/en-us/articles/360047428853-How-to-deposit-via-ACH

Detailed instructions for depositing AUD into Binance.com for Australians:

https://binancoins.com/how-to-deposit-and-withdraw-aud-on-binance-via-web-and-mobile-app-0513311

Or also here: https://www.binance.com/en-AU/blog/all/how-to-start-trading-on-binance-australia–stat-heres-a-quick-guide-to-getting-started-421499824684901634

TIP TO LOWER YOUR PURCHASE FEES

From your account homepage, scroll down to the bottom of your dashboard, where you’ll see a setting that allows you to pay the purchase transaction fees using BNB instead of fiat money, which lowers the purchase fee from 0.1% to 0.075% (saving you 25% on fees). Toggle that on so it shows green (see screenshot below).

I recommend keeping $20-50 USD worth of BNB inside Binance.us or Binance.com at all times to cover purchase fees, but the exact amount is up to you. Buying $5,000 USD worth of BNB should cost $3.75 (charged in BNB) or $5 (charged in USD).

PURCHASE BNB

There are two ways to purchase BNB:

Option 1 (far easier, but 5x more expensive): Instant Buy.

Click the “Buy Crypto” button at the top banner inside Binance after logging in. This is the easiest way, but it’s 5x more expensive at 0.5% instead of 0.075 – 0.1%. See the screenshot below if you prefer this option.

Option 2 (more complicated, but 5x cheaper): Spot Trading.

This method is more advanced but lowers the purchase fees significantly by 5x or more to just 0.1% if paid with USD or 0.0075% if paid with BNB.

Do NOT click the white “Buy Crypto” link from the top banner once you’re logged into Binance, nor the big yellow “Buy Crypto” button. Those are for Option 1: Instant Buy (0.5% fees).

Instead, from the Binace top banner, Click “Trade > Advanced Trading” (see screenshot below).

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That will take you to the Bitcoin/USD exchange, so you need to switch it to BNB/USD. Click “BTC/USD” and type in “BNB” in the search bar, then click “BNB/USD.”

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Follow the screenshot below to buy BNB at “Market” value.

If you understand “Limit” or “Stop-Limit” orders (same as with stocktrading), you can also do that instead of placing a “Market” order. The fees are the same (0.075 – 0.1%).

To learn more about those order types, read the official Binance explanation here: https://academy.binance.com/en/articles/understanding-the-different-order-types

ALTERNATIVE EXCHANGE TO GET BNB

If your local laws permit, you could buy BNB elsewhere, like KuCoin (my referral link: https://www.kucoin.com/ucenter/signup?rcode=rB9XSSM), but I prefer to buy it directly from Binance, the token creator itself.

Unfortunately, Kucoin.com doesn’t accept fiat money deposits, so you’ll need to first purchase USDT (a stablecoin pegged 1:1 to the U.S. Dollar) from another crypto exchange like Coinbase Pro (which doesn’t sell BNB), send that USDT to Kucoin, then swap it for BNB. It’s a huge headache with so many steps. Plus, you’ll incur extra transaction fees every step of the way and risk losing your coins forever if you make a misstep.

It is CRITICAL that you buy BNB on the correct network, which is Binance Smart Chain (BSC, also known as BEP20). BSC and BEP20 are the same thing, so people use the terms interchangeably. You may see it written as “BEP20 (BSC)” or some variation thereof.
NOTE: Do NOT buy BNB on the Binance Chain (BEP 2). That doesn’t have the word “smart” in it. Also do NOT confuse BEP20 (the correct network) with BEP2 (the wrong one). Definitely do NOT buy BNB on the ERC20 network, which is the Ethereum network (they charge one of the highest transaction fees around). If you buy or send BNB on the wrong network, you will waste money converting your BNB to the proper network.

If you buy BNB from Binance.us or Binance.com, you don’t have to worry about choosing the right network. You won’t have a choice because the Binance exchange platform automatically picks the right BSC/BEP20 network for you. However, when you later transfer BNB out, you must ensure you’re selecting the BEP20 (BSC) network.
Go to https://metamask.io/ and install the MetaMask extension for your Chrome, Firefox, Brave, or Edge internet browser. Sign up for a new account if you don’t already have one. You can also get the MetaMask Android app from the Google Play store or the Apple Store (coming soon). However, everything is much easier on the computer, which offers a better interface than the phone.

Detailed MetaMask set-up guide here (written by someone else): https://medium.com/@alias_73214/guide-how-to-setup-metamask-d2ee6e212a3e

The most important things to keep private are your MetaMask password (which you’ll pick yourself), and even more importantly, your MetaMask Secret Recovery Phrase (also called a Seed Phrase). You cannot pick your own seed phrase, and it can NEVER be changed. Keep this extremely private and protected. Do not give your Secret Recovery Phrase out to anyone, not even official MetaMask support people (they don’t need it). Anyone with your phrase can steal all of your cryptocurrencies. Anyone asking for your Seed Phrase is a scammer!

You MUST physically use pen and paper to write your Secret Recovery Phrase (Seed Phrase) down. Any form of digital record can be hacked (you’ll lose all your crypto), so NEVER save your Seed Phrase as a digital file or picture on your phone, computer, or cloud drive.

Do NOT write your Seed Phrase down around cameras, not even a webcam or phone cameras (cover those all up). NEVER type the Seed Phrase on your computer, tablet, or phone. NEVER use Google Docs, Microsoft Word, Notepad, or anything digital to record or store your Seed Phrase. NEVER use a password manager app. NEVER print out your Seed Phrase because printers keep records of what’s printed. Especially do NOT take a picture of your Seed Phrase with your phone/camera.

Some people worry that paper can get damaged/burned or that ink can fade, so they even use more permanent solutions like steel or titanium plates to record their Seed Phrases and store them in a safe or bank safety deposit box. These metal solutions are pretty expensive (around $25-50+ each), so think about how safe you want to be. But just remember, if you lose your Seed Phrase or anyone gets access to it, no one (not even MetaMask developers) can help you recover your wallet if your computer crashes/gets hacked. You’ll likely lose all your funds.

The Seed Phrase is stored locally on your own internet browser/computer, NOT on MetaMask servers. Technically though, because the Seed Phrase was generated online, it’s insecure if your computer has already been compromised/hacked.

Security Tip: I recommend using an offline physical hard wallet like the Keystone Pro (https://keyst.one/), which is 100% air-gapped, meaning it has no ability to connect to a computer or the internet. You can later sync your Keystone wallet to MetaMask. Hardware wallets are an additional cost and require extra steps, but they are far safer than MetaMask alone.

I do NOT recommend the popular Ledger or Trezor hard wallets (their screens are too small and Ledger even had a data breach). Ledgers are not even 100% air-gapped because they use Bluetooth. You have to weigh your own convenience versus security.

Add the Binance Smart Chain (BSC/BEP20) network to MetaMask. Here’s a step-by-step guide from the official Binance site: https://academy.binance.com/en/articles/connecting-metamask-to-binance-smart-chain

Copy and paste the settings:

Network Name: Binance Smart Chain (BSC/BEP20)
New RPC URL: https://bsc-dataseed.binance.org/
ChainID: 56
Symbol: BNB
Block Explorer URL: https://bscscan.com

Go to the Wallet tab on Binance to withdraw your BNB on the BEP 20 (BSC) network to your MetaMask Wallet address, which must be first connected on the BEP 20 (BSC) network.

In Binance’s Wallet tab, look for the BNB row and move your mouse cursor over to three dots to make “Deposit” and “Withdraw” appear. Click “Withdraw.”

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Open your MetaMask Wallet and make sure you select the Binance Smart Chain Network (or whatever you named it when you first added the BSC/BEP20 network).

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Now copy your MetaMask address (see screenshot below) and paste that address into the proper “Recipient Address” box on in the “Withdraw BNB” pop-up box on Binance (see two screenshots above).

Do NOT transfer all of your BNB out of Binance because you need to save a small amount for transaction fees, known as “gas fees.” Usually, 0.05 – 0.1 BNB is enough for making a few transactions, though you may want to save more if you plan on making many transactions. You can always buy more BNB later too.

Don’t freak out if you don’t immediately see your BNB deposited inside your MetaMask Wallet, even if you’ve refreshed it several times. Transactions in the crypto world are not instantaneous and can take a few minutes (sometimes hours if the network is congested). However, BSC is pretty fast, so if you don’t see your BNB showing up within 5 minutes, there’s a good chance something went wrong.

If you’re using a hardware wallet like Keystone Pro or Ledger, then there will be different, more complicated steps, but if you’re an advanced user like that, you probably know what to do.

After you see your BNB deposited in MetaMask, head to drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8 and click the CONNECT WALLET button at the top-right of the site.

Note: The screenshots in this article are for DRIP Version 1. Forex Shark is almost ready to launch Version 2 of DRIP’s user interface (UI), which looks much nicer, but that means the entire website look will be different. Look around for CONNECT WALLET.

After clicking CONNECT WALLET, you’ll see a pop-up with different wallets you can connect. Click MetaMask. You’ll see a pop-up MetaMask notification asking you to CONFIRM this transaction. Click CONFIRM. This allows DRIP to interact with the funds inside your MetaMask Wallet.

Note: If you see “Incorrect Network,” switch MetaMask’s network to the proper Binance Smart Chain (BSC/BEP20) network and connect again.

If you’re connected properly, the upper corner of the DRIP page will show your MetaMask Wallet address (this is public information, so anyone can see this address). The only things you must keep secret are your Seed Phrase and password.

A buddy/referral address is required to join DRIP, so go to drip.community/faucet?buddy=0x084933793fA5885E0c684ee3BeA20dd9829D64A8 and click “Buddy Detected” under the “Get a Buddy” section. This which will auto-populate the Buddy Address field

Or you can manually copy and paste the following into the Buddy Address field:

0x084933793fA5885E0c684ee3BeA20dd9829D64A8

Now click UPDATE. A MetaMask pop-up notification will pop up, so click CONFIRM to pay a tiny transaction fee (a few cents) to sign up under the buddy address.

Now you’re ready to exchange your BNB for actual DRIP. Click “SWAP” in the top banner of the DRIP page.

Then under the “Buy DRIP” box, click the gear icon to adjust the slippage tolerance. The slippage means how much fluctuating price changes you’ll accept from the listed price above the box. Higher slippage percentages are more likely to process the transaction successfully, but you may lose more money in the swap.

I like to use 0.25%, but the lower you go, the more likely you’ll get an error message on MetaMask that the transaction is likely to fail. If that happens, do NOT confirm. Reject, and adjust your slippage higher until the error disappears. You may need to go as 1.0%, or maybe even more depending on how much DRIP activity is happening at the moment.

Type in how much BNB you want to exchange for the DRIP token. Don’t input 100% of your BNB because you need to keep a small amount (recommended at least 0.1 BNB) inside your MetaMask to pay for transaction fees (called “gas fees”). Click BUY, then on the pop-up MetaMask notification, click CONFIRM to approve the purchase.Note: If you see a message that says the transaction is expected to fail, do NOT confirm. It usually means you’re trying to swap too few BNB, so increase your purchase amount. Or maybe you have insufficient funds, so add more BNB.

You might also see a MetaMask message that says a new address was detected, asking you to add it to your address book. This new address is the DRIP Faucet contract wallet address, so if it’s your first time interacting with DRIP, MetaMask doesn’t recognize the address.

If you add it to your address book, MetaMask will remember that it’s a trusted address, which you can label as “DRIP Faucet” or something. It’s up to you if you want to add it to your address book. It helps with identifying the contract address.

Import the DRIP token into MetaMask, so you can actually see that you now own some DRIP. Without importing this custom DRIP token, you might think you just lost all your BNB and received no DRIP, when in reality, you just didn’t tell MetaMask to make the DRIP appear. To import DRIP, open your MetaMask extension and under your Assets tab, you’ll see your BNB. Scroll down a bit and you’ll see “Don’t see your token? Import tokens.” Click that.

Type in the following:

Token Contract Address:
0x20f663cea80face82acdfa3aae6862d246ce0333

Token Symbol:

DRIP (this should auto-populate; otherwise, type in “DRIP”)

Token Decimal:

(this should auto-populate; otherwise, type in “18”)

The warning about fake versions of existing tokens is just letting you know not to import from contract addresses that you don’t know/trust. The one I listed above is the only correct DRIP token contract address.

Click the blue “Add Custom Token” button. Your newly purchased DRIP tokens should appear within a few moments inside MetaMask.

In the Deposit box, type in how much DRIP you want to invest. I’d click MAX to put in 100% of your DRIP, unless you want to save some DRIP to invest in other DeFi projects like the DRIP Garden or Piggy Bank (which I won’t talk about in this article). Click DEPOSIT (current minimum deposit is 1 DRIP). Click CONFIRM on the MetaMask pop-up notification to approve the transaction and pay the gas fee.Normally, everyone depositing is charged a 10% deposit tax. But if you’ve joined with my referral link, 25% of that tax is automatically returned to you as an airdrop (free gift), so you’d only effectively pay a tax of 7.5%. Only special Team Wallet referral links like mine offer this discount. On top of that, I also offer additional free DRIP as a welcome bonus for everyone using my referral link.

That’s it! You’re invested. Your full deposit is burned, so you cannot get that back, but you’ll immediately start earning 1% per day on the deposited amount shown in the DRIP dashboard. Remember, this amount is post-deposit tax, so it’ll be less than your actual deposit.

Keep in mind, your DRIP rewards are stored at the DRIP Faucet contract address, not your own MetaMask Wallet until you claim your DRIP (10% claim tax). That means you won’t see your DRIP balance go up inside MetaMask unless you’ve already claimed the rewards. Hydrations are charged a 5% tax.

All of these taxes are counted towards your max payout of 100,000 DRIP per wallet, but you probably haven’t deposited enough to see 100,000 displayed yet. The more you deposit, hydrate, and receive airdrops, the more your displayed Deposits increase, which then increases the Max Payout displayed. The displayed Max Payout is always 3.65x (365%) your displayed Deposits until you reach the hard cap of 100,000 DRIP.

Now it’s up to you to decide a personal strategy to either HYDRATE (compound) or CLAIM your rewards every day. Technically, you could click those buttons anytime, even multiple times per day, but you need to take transaction fees into consideration and optimal strategies. I’ll cover some popular strategies to help you determine the best hydrate/claim schedule for your personal situation in a following section below.

To turn your DRIP rewards back into regular cash (fiat money), you’ll need to first convert it back into BNB, which you can then deposit back into Binance.us or Binance.com or another crypto exchange platform that lets you swap BNB for USD (or another fiat currency or cryptocurrency if you prefer).

Make sure you’ve first claimed your DRIP into your MetaMask Wallet. Then go to https://drip.community/fountain, and under the SELL DRIP box, adjust the slippage tolerance to your preference. You don’t have to click their suggested values. I prefer typing in a smaller amount like 0.1% slippage.

Then type in the amount of DRIP you want to sell and click SELL. Click CONFIRM on the MetaMask pop-up notification. You’ll also need to toggle the Approve DRIP button and click CONFIRM on the MetaMask pop-up, which will cost a small transaction fee (a tiny bit of BNB). Remember, selling DRIP costs a 10% sell tax, so you’ll only receive 90% of your DRIP back into MetaMask. All these taxes help keep DRIP Faucet sustainable.

After you see your DRIP tokens show up in your MetaMask Wallet, click the Assets tab, click BNB, then click the blue Send icon to send BNB to Binance.us or Binance.com.

In the “Send to” box in MetaMask, paste in your Binance wallet address where you’ll receive your BNB. You can find your Binance wallet address under the Wallet tab on the Binance site.

Locate the BNB row and click on the 3 dots (far-right of the screen, next to the “Trade” button), then click “Deposit,” which will display your BNB address. The QR leads to the same BNB address.

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Choose the BEP20 (BSC) network or your money might disappear (or need to be retrieved in complicated ways, which cost fees)!

Click CONFIRM on the MetaMask pop-up notification to approve the transaction and gas fee. In a few moments, your BNB will be deposited into your Binance Wallet.

Now inside Binance, under the Wallet tab, identify the BNB row. Click on “Trade” and you’ll see a dropdown menu appear, showing you that you can trade your BNB for USD (or a few stablecoin options like USDT or BUSD, or even Bitcoin.) If your goal is to have regular cash, click the BNB/USD pair.

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This will take you to the trading tab, where you can execute a limit order, market order, or stop-limit order. To learn about order types, read the Binance explanation: https://academy.binance.com/en/articles/understanding-the-different-order-types

Click the red “Sell BNB” button to execute, and after it succeeds, you now have regular USD inside your BNB Wallet. Congrats, you’ve realized your profits in regular cash!

Now you can transfer USD back to your bank, but I recommend keeping at least some inside Binance, so you can deploy that cash for future crypto investments. If you withdraw it back to your bank, then redeposit USD later for future crypto plays, you’ll need to wait 10 days before Binance allows you to transfer your money or newly purchased crypto out to an external wallet address like MetaMask, which is needed for many DeFi investments.

In 10 days, prices can change dramatically, so you might miss out on good opportunities. I learned that the hard way, so now I like to keep some USD or stablecoins inside various centralized crypto exchanges (CEX) or non-custodial wallets like MetaMask to instantly deploy without a waiting period. There are pros and cons of keeping your coins inside CEXs versus non-custodial wallets, so do your own research to make that decision.

But keep in mind the saying “Not your keys, not your coins.” You don’t have the keys to a CEX wallet, but you do own the keys (your Seed Phrase) to MetaMask, so the question is who do you trust more with handling security: the CEX with a dedicated security team (though many have still been hacked) or yourself? There are also gas fees to transfer crypto from your wallet to a CEX, where you can more easily trade/sell, so also consider those fees.

How to Top Off Gas (BNB Fees) in MetaMask

You need to always maintain a small amount of BNB within your MetaMask Wallet (specifically in the account you used to sign up for DRIP) to pay for every transaction. Every crypto transaction, not just in DRIP, requires a separate gas fee. You need to top off your gas BEFORE trying to carry out your transactions!

It’s critical to plan ahead to replenish your BNB because there’s a 10-day waiting period inside Binance before you can transfer out the BNB to MetaMask. In that time, you can’t do anything in DRIP if you can’t afford the gas fees. You’re losing all your compound/claim days. Furthermore, the price of BNB and DRIP may fluctuate dramatically while you’re waiting.

So what do you do if you’re running low on BNB for gas, or you get a message in MetaMask that says the transaction is expected to fail (which typically means your desired action will NOT be executed, but you will still lose the gas fee)?

You buy more BNB by going toBinance.us or Binance.com, and remember to toggle on the setting that lets you save 25% on purchase fees by paying with BNB instead of fiat money.

I recommend keeping $20-50 USD worth of BNB inside Binance.us or Binance.com at all times to cover purchase fees, but the exact amount is up to you.

Inside Binance.us or Binance.com, click the “Wallet” link in the top banner.

Find the USD (US Dollar) row, and scroll your mouse cursor to the right side of the row until “Deposit” and “Withdraw” appear.

Click deposit to transfer fiat money from your bank (ACH transfer or wire) into Binance.

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It may take a few moments for your money to appear inside Binance, but once it does, you’ll wait 10 days to transfer it out to MetaMask. Unfortunately, Binance makes you wait these 10 days to avoid chargebacks, so you cannot transfer out your newly deposited fiat money (or BNB, or any crypto, purchased with it) immediately.

That’s a lesson I learned the hard way, so I now leave some USD that has vested for 10+ days inside Binance to deploy whenever I want without a waiting period (and I’ll replenish it asap if I do transfer it out).

Alternatively, you can keep some stablecoins (cryptocurrencies like BUSD, USDC, USDT, etc. which are pegged 1:1 in value to USD), but they also need to be vested for 10 days if you just purchased them with newly deposited fiat money.

When your 10 days are up, follow the screenshot below to buy some BNB the same way you originally bought BNB.

Option 1: Instant buy with the “Buy Crypto” button seen below) costs 0.5%.

Option 2: Spot Trading under the “Trade > Advanced Trading” section) is cheaper at 0.075 – 0.1%.

After purchasing some BNB, you need to withdraw it on the BEP 20 (BSC) network to transfer to your MetaMask Wallet address, which must be first connected on the BEP 20 (BSC) network.

Open your MetaMask Wallet and make sure you select the Binance Smart Chain Network (or whatever you named it when you first added the BSC/BEP20 network).

Now back in Binance’s Wallet tab, look for the BNB row and click the three dots on the far right to make “Deposit” and “Withdraw” appear. Click “Withdraw.”

Copy your MetaMask Wallet address (see screenshot below) and paste that address into the “Recipient Address” field in the “Withdraw BNB” pop-up on Binance (see screenshot above).

If you don’t immediately see your BNB deposited inside your MetaMask Wallet, don’t worry. Transactions in the crypto world can take a few minutes (sometimes hours if the network is congested). BSC is pretty fast though, so if you don’t see your BNB showing up within 5 minutes, there’s a good chance something went wrong.

If you followed the steps right, you should see more BNB inside your MetaMask for gas now though!

Note: You could trade other cryptocurrencies (instead of newly deposited USD) for BNB too. If those cryptocurrencies were NOT bought with newly deposited USD, you can swap to BNB and immediately withdraw out to MetaMask—even if you just deposited those cryptocurrencies into Binance from a different wallet or exchange a few seconds ago.

Is DRIP a Ponzi/Pyramid/MLM Scheme?

When most people learn about DRIP, they immediately think Ponzi scheme because a buddy/referral link is required to participate. But this referral link operates much more like a traditional affiliate link, which rewards both you and your referrer with extra bonuses (free DRIP). It’s like those websites that offer a $10 free bonus to each new sign-up, as well as $10 to the person who referred the newcomer.

But true Ponzi schemes are designed so that new sign-ups are only able to earn by recruiting more referrals. That’s why Ponzi scheme investors who get in too late have no chance of making money and often lose their entire investment.

This is absolutely NOT the case with DRIP. Even if you refer nobody, you’re still entitled to earn the 1% daily compounded interest promised to every DRIP investor—no more, no less. That’s completely fair.

Now, if you choose to refer people (the operative word is choose, because you really don’t have to), then you can earn extra reward bonuses on top of your incredible returns of the core DRIP product.

In fact, in some sense, DRIP’s design actually discourages referrals by reducing the rewards a referrer earns once he gains 5+ direct referrals. Getting 5+ referrals automatically classifies the referrer’s wallet as a Team Wallet, which lowers the referrer’s own reward percentage, while simultaneously increasing the rewards to his referrals.

Doesn’t that sound like the OPPOSITE of how Ponzi schemes function (normally, you’d think the more referrals you bring in, the higher the rewards you’d earn from them)?

But DRIP does things differently. These counterintuitive mechanisms are precisely what have kept DRIP sustainable for a year (an eternity in the crypto world, where most projects collapse in 1-3 months with many investors losing all their money).

NOTE: Earning referral bonuses does NOT increase your maximum earning potential. Everyone, regardless of their referral count (even people with 0 referrals), has the exact same max payout: 100,000 DRIP (before DRIP taxes). Wallets are programmed to stop earning anything once they reach that payout.

That means people earning massive referral bonuses simply reach this max payout sooner because they have a higher amount to compound with. However, given enough time, even people with no referrals can compound enough to earn the same max payout. Everyone ends up earning the same amount of DRIP if they continue to the max payout.

Now some people argue that the high taxes keeping DRIP sustainable are paid for by new investors piling on, which is true. But taxes are also paid by old/current investors. Everyone pays them.

Sure, if suddenly no one invested any further into DRIP, then the project becomes a closed system where the people cashing out are taking money from the others. That’s the big fear many investors worry about. But that’s how the traditional stock market (and ALL of economics) works too!

What causes the share prices of TSLA or AAPL or AMZN to go up? More people investing. If suddenly everyone stopped investing in those stocks and people only sold, then you have the same situation as the dreadful DRIP scenario above: people cashing out are earning their profits from the money from the other investors who previously bought the shares.

So you believe DRIP is a Ponzi, then by that same logic, you believe the stock market and entire economic system at large are also Ponzis. They all require more capital flowing in to boost the current price of stocks or everyday items like gasoline or milk. People buying the same thing at higher and higher prices creates natural inflation. I mean, are you paying the same for gasoline as you did a few years ago? This mechanism is a natural part of economics, not a Ponzi scheme.

The good news is that there are tremendous incentives for people to continually invest in DRIP. Not only are DRIP investors who’ve already reached their max payout re-investing in DRIP by starting new wallets, but there are multiple reasons people are buying DRIP for other projects in the DRIP Network ecosystem.

Whale Tax Explained

A “whale” is someone who holds a large amount of crypto. The danger of a DRIP whale is that he/she can sell huge amounts of DRIP at once, significantly affecting the balance of supply and demand. If a whale sells, DRIP’s price will drop significantly because the large DRIP supply being offered for sale decreases demand, which in turn, lowers the price.

In most other DeFi projects, early investors DeFi often become whales by accumulating massive rewards early. When these whales later sell, it’s to the detriment of the whole ecosystem, particularly later investors who bought the tokens at a high price, only to see the token’s price plummet. This is why it’s so important to do something to limit the amount of sell pressure (and lower price action) that whales can create.

DRIP handles this problem by implementing an ingenious “whale tax” protection that helps maintain the DRIP Faucet’s sustainability. When price is falling like a rock, investors become scared to buy, which in turn, creates even greater desire to sell all around, thereby creating a death spiral as the price plummets towards zero. When people are scared to buy, liquidity also becomes a problem, meaning it’s difficult for someone wanting to sell their DRIP to exchange it for BNB and ultimately fiat money.

DRIP’s whale tax ranges from 5% to 50% on top of all other taxes in the DRIP system, which are as follows:

10% buy tax (if purchased from Pancake Swap, so avoid this by buying directly from the DRIP Fountain).
10% deposit tax (lowers to 7.75% if you sign up under a Team Wallet)
5% hydration tax (lowers to 3.8125% if you sign up under a Team Wallet)
10% claim tax
10% sell tax
5 – 50% whale tax

This whale tax goes directly to the rewards pool to ensure the whale can’t sell the full amount of DRIP he/she earned, thus reducing the sell pressure and downward price action.

From DRIP’s whitepaper, we can see the whale tax tiers as follows:

So the whale tax starts applying when the figure shown under “Deposits” (that’s the sum of the DRIP you deposited POST-deposit tax + hydrated POST-hydration tax + received via airdrops) reaches 1% or more of DRIP’s total supply.

Currently, the total DRIP supply is 1 million tokens, so 1% of that is 10,000 DRIP tokens. If there ever comes a case that more DRIP tokens are minted, then you’ll need more DRIP to reach 1% of the total DRIP supply.

So let’s pretend a whale has 10,000 DRIP under “Deposits.” Normally, he/she is supposed to earn 1% of that (100 DRIP) per day, which would show up as an extra 100 DRIP under “Available.”

However, with the whale tax, he just reached the 5% whale tax tier, which means only 95% of that earnings (so 95 DRIP, not 100) will appear under his “Available” to hydrate/claim section. However, the full pre-whale tax earnings (100 DRIP) will be added under the “Claimed” section once the 95 DRIP from “Available” is either hydrated or claimed.

In summary, the amount under “Available”:

Has ALREADY removed the whale tax, even before you click “HYDRATE” or “CLAIM”
Has NOT removed the 5% hydration tax (or 3.8125% if you signed up under a Team Wallet)
Has NOT removed the 10% claim tax (or 7.75% if you signed up under a Team Wallet)
Has NOT removed the 10% sell tax (since you haven’t even claimed the DRIP yet, much less sold it yet)

Let’s take a look at Stunna Breezy’s account, which was the first person to ever reach the max 100,000 DRIP payout, which occurred in February 2022. The top part of the screenshot shows his stats right before claiming, while the bottom half shows the results very soon after claiming.

At this point, Stunna Breezy already had 31,330 DRIP deposited. 1% daily interest of that is 313.3 DRIP, so he’s actually claiming before his full 24 hours is up. But it doesn’t matter; we can still see how the whale tax works.

Keep in mind the 23,459 DRIP he has already claimed previously. This number will increase after he clicks “CLAIM” to take his 206.546 DRIP earnings shown under “Available.”

After claiming, notice how his “Claimed” number jumped to 23,702 DRIP. That’s an increase of 243 DRIP claimed. But wait, didn’t he only have 206.546 DRIP “Available” to claim? So how come the “Claimed” figure jumped up higher than 206.546?

That’s because the whale tax was already taken out, so the figure shown under “Available” is POST-whale tax. His deposits are 31,330 DRIP, which puts him at the 15% whale tax tier.

The full claimable rewards he was trying to claim was 243 DRIP (which is what we see added under his “Claimed” section after clicking “CLAIM”). After the 15% whale tax, he keeps 85% of 243 DRIP = 206.55 DRIP (very close to the 206.564 shown!). The small difference is simply because the dashboard rounds off numbers for convenience, but rest assured, exactly 15% was taken for the whale tax.

Remember, there is also a 10% claim tax, so since he is claiming 206.564 DRIP, he will only receive 90% of that into his MetaMask Wallet.

Before claiming, we see his wallet balance for DRIP was 124.4651 or so. After claiming, we see it jumped up approximately 185.91 DRIP to 310.47245 DRIP or so.

Why only 185.91, not the full 206.564? Because 90% of 206.564 = 185.91 DRIP!

Important: the 10% claim tax is calculated off the “Available” to claim figure (which is POST-whale tax), NOT the full 1% daily earnings that gets added under “Claimed.”

Remember, the max claimable rewards per wallet is 100,000 DRIP, which is being counted under the “Claimed” section. However, with all the taxes, an investor is truly only taking out a far lower number. That’s why the true max payout per wallet is around 43,600 DRIP before selling, or 39,240 DRIP after the 10% sell tax. So that’s approximately a 60.76% tax in total to ultimately sell DRIP back into BNB.

The more you hydrate/deposit, the more whale taxes you’ll have to pay. Eventually, all of us will have to pay these whale taxes, but that’s a good thing because it means we’re getting closer to our max payout, while simultaneously giving increasing larger amounts of our rewards back to sustain the project for other investors who haven’t gotten as far as we have.

One interesting thing to note is that Stunna Breezy exceeded the magical 27,397.26 DRIP under “Deposits” needed to reach the max 100,000 DRIP payout. He had 31,330 DRIP, so the max he can earn is 3.65x that, or 114,245 DRIP. Unfortunately, that exceeds the 100,000 DRIP cap, so he still can only earn 100,000 DRIP.

Essentially, he wasted his money depositing or hydrating to 31,300 DRIP—not sure why he did that. Maybe he overshot the number because of all his referral rewards. The extra 3,902.74 DRIP he deposited is basically a free gift to the rest of the DRIP network for all other investors like us.

Another thing is, if you play the game right, no one should ever reach the 15% or higher whale tax tier. At 27,397.26 DRIP deposited, that’s only a 10% whale tax tier. Play it smart and don’t let your deposits go above this, not only so you’ll pay lower whale taxes, but also because you’re literally wasting money and time after 27,397.26 deposited DRIP!

The Round-Robin Referral System Explained

Remember, you don’t need to refer anyone—not even one person—to earn your 1% daily compounded interest (which alone is enough to make you a multi-millionaire in a few years).

The referral system is quite confusing, so it’ll take some explaining. Read on if you’re interested in earning extra referral bonuses to reach your max payout sooner; otherwise, you can skip this section and continue earning your 1% daily.

First things first: referring people does NOT allow you to earn more than someone who refers nobody. Everyone, regardless of referrals, has the same max payout of 100,000 DRIP maximum per wallet. The referral rewards simply allow you to reach the maximum faster.

Secondly, before you can begin receiving any referral rewards, you must first buy BR34P (pronounced B-reap) tokens and have them deposited in the same wallet address associated with your buddy/referral link. Without these BR34P tokens, you’ll earn nothing from referrals.

I made the mistake of forgetting to buy any BR34P when I first began, so I missed out on many rewards and ended up impulse purchasing BR34P when it was insanely expensive to not miss out on further rewards. Don’t make my same mistake.

This BR34P requirement is another of Forex Shark’s ingenious implementations. BR34P came from one of his previous projects, for which he’s always striving to create longevity. This gives me confidence that he’s not here to pull a fast one on us investors. His actions support the idea that he’s not a rug-pull kind of guy (although anything is possible).

Even with DRIP Faucet, he’s found ways to use the DRIP tokens for his subsequent DeFi projects. He’s creating an entire ecosystem, not a pump-and-dump operation.

Depending on how many levels deep you wish to collect referral bonuses from, you’ll need to hold exponentially more BR34P tokens, which gets prohibitively expensive fast. However, holding a few BR34P tokens is probably realistic, depending on the current price.

You’ll need a minimum of 2 BR34P tokens to receive referral bonuses from people you’ve directly referred (they’re the first downline under you). If you also want to earn rewards from the referrals of your direct referrals, you’ll need 3 BR34P. The more downlines you want to earn rewards from, the more BR34P you’ll need based on the chart below.

I’ll explain exactly how to buy BR34P tokens in the section right after this one, but for now, let’s focus on how much referral rewards you actually make.

IMPORTANT: The amount of rewards given and taxes paid depend on whether your direct referrer (e.g. buddy) is a Team Wallet or not.

A Team Wallet is an account with 5 or more direct referrals. A non-Team Wallet has 0-4 direct referrals.

Virtually every transaction in the DRIP Faucet is taxed, but referral rewards are only taken from two of those taxes (the deposit tax and the hydration tax).

To lower your taxes, you’ll want to sign up under a Team Wallet like mine. That means I’ll lower rewards (because some of those rewards are used to lower your taxes), but I make up for the loss by referring more people.

REFERRAL REWARDS FROM THE 10% DEPOSIT TAX

After you initially purchase and deposit DRIP tokens into the DRIP Faucet smart contract, you’re immediately taxed 10%.

If you signed up under a non-Team Wallet, 10% of your leftover DRIP (i.e. your post-tax deposit) is awarded to your referrer/buddy, which is the same thing as 9% of your full 100% pre-tax deposit or 90% of your 10% deposit tax. You can think of it either way because the math works out the same.

The important thing to understand is that your non-Team Wallet buddy is NOT earning 10% of your pre-tax deposit, but 10% of your post-tax deposit. 1% of your pre-tax deposit always goes to the community rewards pool.

But under a Team Wallet, things are different. Instead of the full 10% reward on your post-tax deposit going to your buddy, he only gets 75% of that. The remaining 25% is automatically airdropped (i.e. directly credited) back to you. This effectively means under a Team Wallet, you’re only taxed 7.75% to deposit, not the full 10%.

But if you’re getting 2.5% back, wouldn’t that mean you’re only paying 7.5% deposit tax, not 7.75%? Well, that’s actually a misconception. Remember, you are NOT getting 2.5% of your initial pre-tax deposit back. You are only getting 2.5% of your post-tax deposit back, which means you’re paying a 7.75% deposit tax if you do the math.

Let’s run the numbers in an example so it’s easy to understand.

Pretend you initially deposited 100 DRIP. The 10% deposit tax on that would be 10 DRIP, leaving you 90 DRIP post-tax. The 10% reward on that 90 DRIP is 9 DRIP. This 9 DRIP is the referral reward.

Under a non-Team Wallet, the full 9 DRIP (which is 9% of the 100 DRIP pre-tax deposit or 90% of the 10 DRIP tax) is given entirely to your buddy.

But under a Team Wallet, the 9 DRIP reward is split 75/25. So 75% of 9 DRIP is 6.75 DRIP awarded to your buddy, and 25% of 9 DRIP is 2.25 DRIP awarded to you.

You originally paid 10 DRIP in taxes, but now you’re getting 2.25 DRIP back. So 10 – 2.25 = 7.75 DRIP ultimately paid in deposit taxes. And 7.75 DRIP tax from your initial 100 DRIP deposit is 7.75%, not 7.5%.

Note: Your buddy only earns this referral reward on your FIRST deposit, if he has at least 2 BR34P tokens, and if he has a positive Net Deposit Value (NDV).

NDV = [Deposits (pre-tax) + Rolls (compounded/hydrated DRIP) + Airdrops (gifted DRIP)] – Claims (DRIP taken out of Faucet and back into one’s Metamask Wallet)

In other words, positive NDV is when you have added more to the Faucet than you’ve taken out.

After that, rewards are given out according to a round-robin system, so your buddy must wait his turn to receive rewards again.

For your next deposit (after your initial one), the rewards system applies again but to the account directly above your buddy’s, assuming that account also has enough required BR34P tokens and a positive Net Deposit Value (NDV).

For the deposit after that, the reward goes to the account immediately above the previous reward recipient. However, for every deposit you make under a Team-Wallet (regardless of whose turn it is in the round robin), you’ll always earn an extra 25% of the reward amount back each time.

In all cases, a person can only earn rewards if 3 requirements are ALL met:

Holds enough BR34 tokens in the proper wallet (the one trying to earn the rewards)
Has a positive Net Deposit Value (NDV)
It’s that person’s turn to receive rewards in the round-robin system

If these requirements are not met, it simply skips that person and awards the person next in line instead (assuming they qualify).

It’ll keep going up the line until a maximum of 15 qualifying levels above you, or until it reaches the top (the highest position in the whole network, Forex Shark’s wallet). After that, it cycles back to your direct buddy again and the process repeats.

Remember, my wallet is directly under Forex Shark’s account, so for you to earn your rewards, you have one of the shortest round-robin cycles possible (only 2 levels above you: Forex and me).

Take a look at the Round Robin illustration below.

Rewards from your hydrations or deposits will either go to me (your buddy) or Forex Shark’s account, depending on whose turn it is. But let’s say you hold at least 2 BR34P tokens and get people to sign up under you. Those people are your Level 1 referrals. The rewards from the initial deposits of your Level 1 referrals will go to you, but all their subsequent deposits and hydrations will cycle up to you, me, and Forex. Then after Forex, it’ll go back to you again, then me, then Forex again. If you hold enough BR34P tokens, you can also earn rewards from Level 2 and below (up to 15 levels). So let’s say a Level 4 referral hydrates. Rewards from that will go to the Level 3 referral. Then the next hydration/deposit the Level 4 referral makes will go to Level 2, then level 1, then you, then me, then Forex. This is all assuming everyone has enough BR34P tokens and has a positive Net Deposit Value (NDV) because both of those are required to earn rewards. If the conditions aren’t met, the wallet is skipped and goes up and up until it hits the next qualifying wallet. REFERRAL REWARDS FROM THE 5% HYDRATION TAX Unlike the 10% deposit tax, the hydration (compounding) tax is only 5% of the full compounded amount. That’s the amount you see under the “Available” section in the DRIP dashboard. Since the hydration tax is lower than the deposit tax, the referral reward percentages are also lower. Under a non-Team Wallet, the remaining 95% is added to your total deposits, which begin to compound immediately. An upline wallet qualified to receive rewards will earn 5% of your post-tax hydration amount, and nothing extra is returned to you. So you’d end up paying the full 5% hydration tax. But under a Team Wallet, you’d only end up paying a 3.8125% hydration tax. That’s because the referral reward is split 75/25 between the upline wallet and your wallet. The referral reward is still 5% of the post-tax hydration amount. But then 75% of that reward goes to the upline wallet, while 25% of that reward to your wallet. I’ve created a chart below to illustrate an example with 1 DRIP pre-tax hydration amount.

After your initial deposit, the first action that triggers referral rewards (either hydrate or deposit) will award your Buddy again. After that, your next rewardable transaction (either hydrate or deposit) will go up the chain to the next qualifying wallet. After that, it goes to the qualifying wallet above that, and so on for each subsequent rewardable transaction. Remember, a qualifying wallet that can receive rewards must meet all 3 conditions:

Holds enough BR34P tokens in the proper wallet (the one trying to earn the rewards)
Has a positive Net Deposit Value (NDV)
It’s that person’s turn to receive rewards in the round-robin system

If a wallet does not qualify, the reward goes to the next qualifying wallet above, up to a 15 levels at maximum. After that, the cycle resets beginning with your Buddy again.. Since signing up with my buddy link gives you one of the shortest uplines possible with only 2 wallets above you (me and Forex Shark), you don’t have to wait 15 turns before you earn your rewards. You only have to wait 3 turns. NO REWARDS ON CLAIMS/SELLS, BUT WATCH OUT FOR TAXES No one earns any referral rewards from DRIP claims or sells, so those don’t count as turns in the round robin cycle. But claiming incurs a 10% tax on the amount of DRIP you’re claiming (the amount under “Available”), which puts the DRIP back in your MetaMask Wallet. Selling that DRIP in the DRIP Fountain incurs another 10% tax on the amount you’re selling for BNB. These two taxes together means you only get to keep 81% of the DRIP under the “Available” section (0.9 after claiming * 0.9 after selling = 0.81 ultimately received as BNB, no longer DRIP). You’ll actually lose a bit more than that depending on the slippage tolerance you set and from the gas fees. So let’s just estimate you only get to keep around 80% of the DRIP you’re claiming and selling.

BE CAREFUL: NEW DEPOSITS TRIGGER AUTO-HYDRATIONS Adding a new deposit also immediately and automatically hydrates (compounds) your unclaimed rewards, adding both your post-tax hydration amount and your post-tax deposit to your total deposits. So if you know you want to both hydrate and deposit, do NOT hydrate first. Simply make your deposit, which automatically hydrates also for you, to save a little gas. You’ll only have to pay gas for that one single transaction (deposit and hydrate simultaneously) instead of two transactions (deposit and hydrate separately). However, if you intend to wait longer to allow greater growth before hydrating, or if you want to claim your “available” earnings instead of hydrating, you need to do so BEFORE you make your new deposit. As soon as you deposit, you lose the option to hold off on compounding or claiming your DRIP. So the order of actions matters!

Understanding the DRIP Dashboard & Stats

The screenshot below shows what the DRIP Faucet dashboard looks like (note: the user interface will be completely redone in version 2, so it’ll look much different)

DEPOSITS: this refers to the total sum of amount of DRIP tokens you have deposited, hydrated (compounded), or received via airdrop (free gift). The amount displayed is the POST-DEPOSIT and POST-HYDRATION TAX amount. So if you initially deposited 100 DRIP, you would only see 90 DRIP displayed because of the normal 10% deposit tax, or 92.25 DRIP displayed because of the lower 7.75% Team-Wallet deposit tax. The displayed number has already taken out the normal 5% hydration tax, or the 3.8125% Team Wallet hydration tax. You will earn your daily 1% rewards on this displayed number (which again, is POST-TAX). AVAILABLE: This number refers to the accumulated rewards you’re earning, updated every few seconds or minutes. It accumulates at a daily rate of 1% of your deposits shown. Think of this section as the DRIP earnings “available to claim” at the current moment. Remember, you won’t actually keep this entire number because after you hydrate or claim, taxes will be assessed and removed from the displayed figure. Also note that whale taxes are ALREADY removed before displaying the number under “Available,” but hydration and claim taxes are NOT included yet. CLAIMED: This is how many DRIP you have claimed or earned so far PRE-TAX. This figure is the sum of your hydration awards, referral rewards, and airdrops (all PRE-TAX). The max you can claim is 100,000 DRIP. REFERRAL REWARDS: This is a running total of how many DRIP you’ve earned from your referrals. You earn a small percentage of their initial deposit, hydrations (if it’s your turn in the Round Robin system), and subsequent deposits (if it’s your turn in the Round Robin system). This number is automatically included under the “Claimed” section. MAX PAYOUT: This is how much your wallet is currently allowed to earn, which depends on how much you have under your “Deposits” section. The rule is you can only earn a maximum of 3.65X of your “Deposits.” As your deposits go up because you’ve hydrated more or simply bought more DRIP and deposited it, so does your max payout. Our goal is to reach 100,000 DRIP max payout, which we achieve by reaching 27,397.27 DRIP under “Deposits.” The math works out like this: 27,397.27 DRIP x 3.65 = 100,000 DRIP. Anything more than that will NOT increase your max payout, so you’d be wasting time and money after 27,397.27 DRIP deposited. TEAM: This shows how many referrals you have. The first number is how many wallets have directly signed up under your wallet (direct referrals), one level lower. The second number is the total number of referrals under you, including the referral of your referrals. Keep in mind, simply having a big number of referrals doesn’t mean you will earn rewards from them—you must first hold the required amount of BR34P tokens in your wallet. Also remember that earning referral rewards does NOT increase your max payout of 100,000 DRIP. Everyone’s max payout is the same, regardless of referrals. However, earning referral rewards helps you compound to the max payout faster. DRIP BALANCE (right side box): This shows how much DRIP you contain inside your connected MetaMask Wallet, NOT how much DRIP you have sitting inside the DRIP Faucet contract. Generally, you want to deposit 100% of your DRIP into the Faucet, rather than letting it sit there in your MetaMask because DRIP inside MetaMask is not earning any interest. You should only see a positive Drip Balance in your MetMask if you’re claiming DRIP with the intention to sell or airdrop (gift) members on your team free DRIP.

How to Buy BR34P Tokens

You can purchase BR34P tokens at Pancake Swap V1 here: https://v1exchange.pancakeswap.finance/#/swap?outputCurrency=0xa86d305A36cDB815af991834B46aD3d7FbB38523 You’ll see a warning that says you should go to the V2 Exchange instead, but DO NOT DO THAT! Stay on V1 because that’s where the proper BR34P tokens are purchased. Getting BR34P from Pancake Swap V2 is actually faaaaaar more expensive, more than double the price last I checked in mid-March 2022. Tick the “I understand” box and hit the “Continue to V1 Anyway” button.

Then you’ll see another warning about fake versions of existing tokens. Ignore that because we are using the genuine token address. You can confirm the first few and last few digits with the address for BR34P on the immutable blockchain here: https://bscscan.com/token/0xa86d305A36cDB815af991834B46aD3d7FbB38523 Tick the “I understand” box and click “Continue.”

Now click “Connect” in the top-right corner of the Pancake Swap V1 site to link it to your MetaMask. Then click CONFIRM on the MetaMask pop-up notifications.

Now go back to Pancake Swap V1 and fill out the “Swap” section to trade whatever currency you want to BR34P. You’ll need to enter a slightly higher amount of BR34P than you want because you’ll lose some of that BR34P to pay for transaction (gas) fees.

You can adjust the slippage tolerance if you want, but I just left it alone on the recommended value. Because BR34P is an older token, you can expect high slippage for the transaction to succeed.

After you’ve purchased your BR34P, you’ll need to import the token so you can see it inside MetaMask. Under the “Assets” tab of MetaMask, scroll down and click “Import tokens” if a BR34P row isn’t visible yet. Then copy and paste the following into the “Token Contract Address:” 0xa86d305a36cdb815af991834b46ad3d7fbb38523 This will auto-populate the Token Symbol (BR34P) and Token Decimal. Click “Add Custom Token,” and the amount of BR34P tokens you purchase will appear (minus gas fees).

I had to pay gas fees three times because I kept getting slightly under the amount I wanted, so it’s worth it to slightly overestimate the BR34P amount you’re buying. That way you’ll only make one transaction and pay gas once. Congrats, you now have BR34P! Assuming you hold enough BR34P, referral bonuses are rewarded based on the Round Robin system described in the previous section above.

I offer airdrops (free DRIP) to welcome every new referral on my team, as well as random airdrops and targeted airdrops to members most in need of extra DRIP (so I may reward you for having a lower balance). Many referrers offer nothing. This effectively lowers your deposit tax further (paid by me).
Lower deposit taxes, since I’m part of what’s known as a Team Wallet, which means there are 5+ direct referrals under me. The DRIP contract forces Team Wallets to kickback 2.5% of the referral’s starting deposit (that’s after the 10% deposit tax) to the original depositor (you), so instead of paying the normal 10% deposit tax, you’d effectively only pay 7.75%.

Some people incorrectly believe 7.75% should be 7.5%, but no, because your 2.5% kickback is calculated on your post-tax deposit, which is 90% of your full pre-tax deposit. 2.5% of 90% of your pre-tax deposit = 2.25% of your pre-tax deposit, so 10% – 2.25% = 7.75% taxed on your pre-tax deposit. Even though I’d make less per person, I hopefully make up for it by receiving the bonus from more people. You receive this same 2.5% bonus on ALL your future deposits, not just your initial deposit, so you’ll benefit forever under the DRIP system if you sign up under my Team Wallet buddy link.

Lower hydration taxes, since Team Wallet buddy links like mine also kickback 1.25% of your post-hydration tax compound amount (equivalent to 1.1875% of your pre-tax hydrate/compound amount) to your wallet.

Every time you hydrate, you’re taxed 5%, which goes to the rewards pool that then pays a non-Team Wallet buddy/referrer 5% of your post-hydration tax amount. But for Team Wallets, you’ll get 25% of my 5% reward, which effectively lowers your hydration tax from 5% to just 3.8125% of your pre-tax hydration amount. You gain these rewards every time you hydrate, so you’ll earn more DRIP in your wallet, which lets you compound faster and receive higher rewards sooner. Given the power of compound interest, these small amounts quickly grow to massive amounts.

As the Team Wallet leader, I’m here to educate you, clear up any confusion, and help you optimize your strategy. Whether it’s helping you set up your account (crypto and DeFi can be very technically confusing) or consulting you on optimal DRIP strategies, I’ll do my best because it’s in my interest for you to succeed. I’ll even coach you to set up your own team if you’d like. Your success (and mine) helps keep the whole DRIP system more sustainable for years to come.
I’m signed up directly under Forex Shark’s wallet (the developer wallet and highest position in the pyramid), so joining under me gives you the 2nd shortest upline possible. This means you’ll receive your own referral rewards faster and more frequently due to DRIP’s Round Robin referral system design (described in detail in a later section). That’s more and faster money in your pocket. The only way to have a shorter upline is to sign up under Forex Shark directly, but he doesn’t offer free DRIP or personal consultation.

How to Turn Your DRIP Earnings into Actual Cash

While hydrating (compounding) is great to quickly increase your earnings, at some point, you’ll want to turn your DRIP into actual cash. First, make sure your MetaMask Wallet is connected on the Binance Smart Chain (BSC/BEP20) network.

Then head to the DRIP Fountain and click “CLAIM” and confirm the MetaMask pop-up notification (and pay the gas fee). You can’t choose how much to claim. It will always claim the amount shown under “Available,” minus a 10% claim tax, so you’re only receiving 90% of the displayed figure.

This claimed amount will then show up inside your MetaMask Wallet. Make sure you’ve previously imported the DRIP custom token already; otherwise, you can’t see it. After claiming, you need to click “SELL” to swap the DRIP inside your MetaMask for BNB. Type in the amount of DRIP you wish the sell, click the gear icon and change your slippage tolerance (too low may make the transaction fail and you waste your gas, but I think 0.5% is safe). Remember, there is also a 10% tax on selling. So you’re paying two separate 10% taxes: once to claim, and again to sell. Together, that’s a 19% tax (because 0.9 left after claiming * 0.9 left after selling = 0.81 left total, meaning a 19% tax).

After you click “Confirm” on the MetaMask pop-up notification and pay the gas fee, you’ll see the BNB show up inside your MetaMask. Now keep in mind, BNB is volatile, so if you don’t convert BNB quickly back to fiat money (e.g. USD) or a stablecoin (e.g. USDC, USDT, etc.), then the value of your BNB can go up or down. To lock in your sell, you need to immediately move your BNB from MetaMask back into Binance.us (most U.S. citizens), Binance.com (most non-U.S. citizens), or some other centralized exchange where you can easily sell BNB for USD or a stablecoin. Even in the few minutes that process takes, the value of BNB could be different by a few percentage points, for better or worse. You’ll also incur transaction fees from Binance (around 0.075 – 0.1%) to swap BNB for something else. Now that you have cash or stablecoin inside Binance or your centralized exchange, you can either move that back to your bank account or just let it sit in the exchange, ready to deploy for future transactions without Binance’s pesky 10-day waiting period for new fiat deposits. It’s good practice to keep a decent amount of cash or stablecoin inside a centralized exchange at all times, but if you need the money, go ahead and transfer it back to your bank account using ACH withdrawal (free and takes a few business days) or wire (not free but usually executes on the same or next business day). That’s now! Now you understand the entire DRIP Faucet mechanics. The rest is all strategy, depending on how you want to play the game.

Optimal DRIP Strategies for Regular Passive Income or Max Profits

There are infinite ways you can play the DRIP game. It’s all a matter of your personal financial goals and how soon or often you wish to claim rewards instead of compounding. You have to balance your own risk, but here are some suggested strategies for your consideration. FASTEST PATH TO MAX PAYOUT Let’s say you won’t miss the amount you invested and don’t need to earn profits anytime soon. Then you might want to take the fastest path to reach the max payout of 100,000 DRIP per wallet. To do that, just hydrate (compound) once every day and never claim until you’ve reached over 27,397.26 DRIP tokens under the “Deposits” section. Why such a specific number? Because recall that the max you can earn is 365% (or 3.65x) of your total deposited, and the other hard limit is 100,000 DRIP claimed per wallet. 100,000/3.65 = 27,397.2602739726. We’ll just round that to 27,397.26 DRIP. If you keep hydrating after that, you are wasting your time and tons of money. As soon as you reach the goal of 27,397.26 DRIP deposited, you should start claiming every 24 hours for 365 days straight to earn the max payout of 100,000 DRIP. You’ll be able to earn 1% of that 27,397.26 DRIP per 24 hours, so after 365 days, you’ll have claimed the max 365% APY. At this level, 1% is 273.9726 DRIP claimed per day. Of course, remember there is the claim tax, whale tax, and sell tax, so you’re actually receiving significantly less. If you do the math, the max 100,000 DRIP actually turns into 43,600 DRIP or so (before the 10% sell tax). But at $50/DRIP, that’s still over $2 million.

Maximize Profits with “Multiple Wallets” Strategy

Remember the ex-NASA rocket scientist I told you about earlier in the beginning of this guide? Dr. Kelly Snook. She created an incredible Google Sheets DRIP calculator to help everyone determine their best investment strategy. She did round some numbers off, so it’s not entirely accurate. For example, instead of the magical 29,397.26 DRIP, she rounded to only 29,300 DRIP. Not sure why she didn’t round to 29,400, but whatever, the results will be pretty close to reality. Her complex calculator allows you to play around with various hydrate/claim schedules and shows you the various profits you’re projected to make. The key concept she presents is that starting with more money does NOT make you a higher max profit. It merely helps you reach your max payout faster. But every wallet, regardless of referrals, has the same max payout of 100,000 DRIP, so one ingenious idea she had was to create multiple wallets (which you can easily do in MetaMask by clicking “Create Account”). Each wallet can be worth millions of dollars, so if you create many wallets, you can earn insane profits. Of course, the risk is that splitting up your initial deposit across several wallets considerably slows down your compound speed for every wallet. So the risk is that if the DRIP Faucet dies before your wallets can reach max payout, then you’ll earn far less than projected or perhaps not even make your initial investment back. The decision you have to make is whether you want to de-risk by compounding faster or de-risk by pulling out profits every so often, or de-risk simply by not investing too much to begin with. Each strategy will increase risk in one way while decreasing risk in another way, so there truly is no “best” or “right” strategy. Have a look at her analysis and download her free DRIP calculator: https://cryptozoa.com/dripping-with-confidence-simple-rules-for-success-with-drip-part-1-7e3070c18ae7 Here’s her YouTube video explaining how to use her calculator: Have fun experimenting and imagining your riches!

Child-Parent Wallet Strategy (Self-Referral)

Because of the referral rewards, many people think they can simply sign up under their own buddy link to earn extra rewards. You create one account (under someone else’s Buddy link), then add at least 2 BR34P tokens to your wallet, which will serve as the parent wallet. Then under this parent wallet of yours, you sign up additional child wallets underneath. So the initial deposit from your child wallets will earn rewards for your parent wallet. Your parent wallet (on its proper turn in the Round Robin system) also earns rewards from the hydrations and additional deposits of the child wallets. So yes, with self-referral, you do get some extra rewards, although the Round Robin system was designed to combat this. Rather than gaining the rewards every time, you have to wait your turn. All other times, rewards will be given to someone else. But one little-known strategy is to time your new deposits to ensure those rewards will go to your parent wallet, not someone else. This can increase your gains by around 10%. Say you plan to deposit a decent amount of DRIP, which you’d like to earn the deposit referral rewards on. What you need to do is track whose turn it is in the Round Robin chain. For every hydration your child wallet does, see if your parent wallet received the reward. If not, keep hydrating (you can do this over several days) until you see that your parent wallet did receive the rewards. Call that Hydration #1. Then for each hydration your child wallet makes after that, increase the hydration count by 1. So your next hydration will be Hydration #2, and so forth. See how many hydrations it takes for your parent wallet to receive the rewards again. If that happens on Hydration #3, then your upline is 2 links long (one less because Hydration #4 is already the first action of the new Round Robin cycle). By the way, if you sign up under me, you know that your upline is exactly 3 links long because you’ll have only me and Forex Shark above you. So right before you make your next deposit into your child wallet, make sure the rewards from your most recent hydration (of your child wallet) go to the wallet that should receive them right before it’s your parent wallet’s turn again. Now, when you go to make your deposit into your child wallet, your parent wallet will gain the majority of the rewards. Why reward someone else if you can earn the rewards yourself, right? It takes some careful tracking, but it’s worth the effort. Unfortunately, you can never earn rewards from the actions of your parent wallet because those rewards will go upline. Self-referral only works if you have at least one child wallet. Also, don’t put a child wallet under another child wallet; otherwise, each of your child wallets except the lowest one will need more BR34P!

The Risks of DRIP: Is It Sustainable?

DRIP Price Crashes The most obvious risk is, of course, if the price of DRIP crashes. As the effects of compounding take place, more and more people will earn insane DRIP returns, which naturally makes people skeptical how this project is even sustainable. Well, we already discussed how—the massive taxes on every transaction, especially the anti-whale tax. Still, people often wrongly believe DRIP is a Ponzi scheme, requiring ever more new investors to deposit into the Faucet (or old investors to return). While more investors obviously helps the price of DRIP go up because more money is being spent to buy DRIP, we don’t actually need the price of DRIP to go up to ultimately be profitable. Imagine you bought DRIP at $170 (which is around the all-time high on January 26, 2022)—the worst time to buy in. Say you bought 100 DRIP = $17,000 USD. After all the taxes, you’ll end up with 43,593.56 DRIP (before selling). Let’s say you sold those at a huge loss for just $0.50/DRIP. That’s a 99.7% crash. You’d still make $21,796.78 – 10% tax = $19,617.10. Even after say $1,500 in gas fees (estimated), you’d still have $18,117.10, which is a $1,117.10 profit from your initial investment of $17,000! What other investment can drop in value by 99.7% and still earn you a profit?! Unless the price of DRIP went significantly below $0.50, you’ll be okay because of the power of compounding. That’s also why the price you get into DRIP isn’t all that important in the long-term. Waiting extra days, weeks, or months for the DRIP to drop to an attractive low point means missing out on all those days of compounding, which would have more than made up for the higher price you pay to get in now. The scenario I described above is pretty much the worst case—buying at all-time highs and selling at a 99.7% loss. And yet, you still end up slightly profitable. Today’s DRIP price is around $29-60/DRIP, so you can bear to sell for even lower than $0.50 and still break even—around $0.10-0.30. To be fair, if the price drops far enough, say single digit cents, you could lose money, but that’d be a 99.99% or more crash. If that happens, we’re truly out of luck, but I think the chances of that are extremely low. Illiquidity Risk I think the far bigger risk than the crashing price of DRIP is illiquidity—the inability to move our money out of DRIP and into something more trusted, like BNB or USD. Our DRIP becomes illiquid (frozen) because few people are willing to buy our DRIP tokens, even for pennies. So if we own 100,000 DRIP, but we can’t sell it, then obviously, we’ve lost some or all of our initial investment or at least a substantial amount of our potential profits. This situation would happen if people en masse have lost confidence in the project and believe the DRIP token is worthless. So they wouldn’t even pay $0.50/DRIP…maybe not even $0.01/DRIP. But what would cause people to lose confidence to such an extreme level that they’d refuse to buy DRIP even for just a few pennies? The psychological death spiral. It’s the same emotional greed/fear emotions that drive the traditional stock and crypto market. As the price of DRIP goes down, people become increasingly scared, so they begin selling off their current DRIP to at least claw back some money before their DRIP becomes even less valuable. The more they sell, the lower the DRIP price goes, which in turn, panics more people into selling. When they sell, this drives the price even lower. It becomes a death spiral towards $0.00/DRIP. Basically, it’s a bank run when everyone is trying to get their money out of DRIP and redeem it for cash (or a more trusted crypto coin). According to the Law of Supply and Demand, there should be a low enough price that people will begin buying again, thereby driving the price of DRIP back up. But if the overwhelming sentiment of investors is negative towards DRIP, then it’s possible that even $0.01/DRIP is too expensive for enough people to start buying back in. At that point, the DRIP Faucet is effectively dead, leaving investors with losses on their initial capital. The good news is that when this begins to happen in most other DeFi projects, it happens virtually overnight—sometimes in mere minutes (literally). But fortunately, DRIP’s smart contract doesn’t allow this to happen because each wallet can only take out 1% per day instead of selling all 100%. This dramatically slows down the decay of DRIP’s price. In fact, we saw this happen very recently when DRIP was on a 3-month straight decline with no signs of recovery, not even a small rise. At that time, so many people were spreading F.U.D. (fear, uncertainty, doubt) about DRIP, causing most people to pull out as quickly as they can. The broad crypto market was in free fall around this time, with Bitcoin, Ethereum, and other major cryptos losing massive percentages (50-80%). Russia invaded Ukraine, causing macroeconomic turmoil that also affected crypto prices (though it’s since recovered). My point is that this long decline of DRIP wasn’t just isolated to DRIP; it was a broader economic trend. Sure, there were additional individual factors unique to DRIP that also drove the price down. However, because DRIP only allows a 1% daily withdrawal of your total deposits, the price of DRIP only gradually declined, rather than jumped straight off a cliff.

Let’s compare DRIP’s chart to a DRIP clone called Splassive (do not invest in Splassive; they already lost all their money). You can see that Splassive’s token jumped off the cliff (nearly 90 degree drop) and never recovered. Although this drop was because some hackers found an exploit in Splassive code that allowed them to remove nearly all of Splassive’s liquidity immediately, this cliff phenomenon is very common for projects that allow investors to sell all their tokens at once. Maybe it won’t be a 90 degree drop, but it’ll still be a very steep, very fast drop.

To be fair, the slow steady decline of DRIP was still an understandably worrying time for investors. Indeed, many lost faith and exited the project. But this was the exact WRONG move—we have to remember the power of compounding and remember that the price of DRIP can drop 99.7% and we’d still be okay. Plus, we can see that after a low enough point, people have decided DRIP is worth buying again and began purchasing to drive the price up. We’re currently (early April 2022) seeing the beginning of an uptrend again, so it may be the time to buy for as low as we’ll likely see ever again. See the first week of April 2022 (the price is shooting back up).

Ultimately though, you have to be mindful of the possibility of DRIP’s illiquidity. If enough people (the vast majority, like over 90% of investors) believe DRIP is doomed, they won’t buy DRIP at any price, not even 1 cent. At that point, you will lose your money. Fortunately, you won’t be blindsided by this because you can see the slow decline of DRIP. If you truly believe DRIP is doomed because the chart is headed downwards, you can always choose to start claiming and get back as much money as you can (which hurts the whole ecosystem and drives the price down even lower, but hey, it’s your right). You’ll have months to decide whether you want to start pulling out or stick to your guns and see the project through until your max payout. No New Investments into DRIP This fear stems from the belief that DRIP is a Ponzi scheme. In an actual Ponzi scheme, the project is only able to pay investors by signing up new investors, whose investments go to pay earlier investors. So later investors are screwed, while early investors become handsomely rich. But DRIP doesn’t operate like that at all. If no new investors come into DRIP, everyone already invested will continue to earn 1% daily interest. However, the total value locked (TVL) in the DRIP contract will now no longer increase, since no new investments are coming in. If rewards continue to accumulate for everyone, yet there is no extra money to actually pay those rewards, then yes, some people are going to lose some/all of their investment. The total supply of money within DRIP becomes fixed (because no new money is flowing in), merely redistributed among the existing current investors. The earlier you sell and fully exit, the more likely you can earn money. The last remaining investors end up holding tons of DRIP but with no one to buy them—essentially worthless tokens, since no one wants to buy them anymore. The previous investors already exited, and no new investors are coming in. This is the illiquidity risk discussed earlier. But that doesn’t make DRIP a Ponzi. It’s the same risk as any other investment—if no new investors are buying a particular crypto like Bitcoin or stock like Tesla or Apple, then the total value locked remains the same. But as the existing investors begin selling to earn their money, the last remaining investors will be the ones holding onto ultimately worthless coins or shares (since there will be no one left willing to buy). Therefore, DRIP is not risk-free, but the risk of no new investors is the same risk you take on with more traditional investments like stocks or regular crypto trading. However, one thing to always be aware of is the 10% deposit tax (or 7.75% if you join under a Team Wallet). You begin at a negative 10% (or 7.75%) position because of this tax, unlike purchasing traditional crypto or shares, which starts you at a neutral position (0%). But unlike traditional investments that only profit if the price of the asset rises, DRIP allows you to profit in that same way as well as through the power of compounding. For me, the potential of compounding far outweighs the 10% deposit tax. DRIP Tokens Minted Out of Thin Air With such high rewards, many people worry that the current 1M supply of DRIP won’t be enough to keep paying people out. Compounding quickly turns into massive gains for investors, so what happens if there aren’t enough DRIP tokens left to reward investors their daily 1%? First, the reason there isn’t enough DRIP to pay rewards is that new investments have slowed or stopped. That’s why many people believe DRIP is a Ponzi, but that’s false because if money stops pouring into ANY project (stocks, crypto like Bitcoin, etc.), then the price cannot go up anymore. Now most other investments don’t have an obligation to pay rewards to investors when this happens, but DRIP does. This obligation makes people who don’t understand DRIP mechanics accuse DRIP of being a Ponzi. But to handle not having enough DRIP rewards, the protocol simply mints more DRIP tokens out of thin air to continue paying investors. So you’ll continue getting the daily 1% rewards, but with the increased supply of DRIP, the price of DRIP will lower substantially. That’s just basic supply and demand: the more supply available, the lower the price. But as discussed early, the falling price of DRIP doesn’t matter all that much if we just keep compounding. The compound effect will ultimately outweigh even huge drops in DRIP’s price (up to a 99.7% crash). That’s why running out of DRIP tokens and minting more out of thin air isn’t really a risk at all; it’s a misconception. Moreover, it’s a FEATURE designed to protect the DRIP Faucet. This is unlike other projects where if the money runs out, they simply don’t pay you the rewards. (Side note: that’s how I lost nearly $7k in another project that simply ran out of rewards, which would have been worth $10k+ now). Smart Contract Hack or Exploit Because all of crypto and DeFi are essentially computer code, there is always a risk of hacking. This is a risk for ALL crypto and DeFi, not just the DRIP Faucet. If a hacker manages to find a vulnerability in DRIP’s code and exploits it, he/she could drain all the money out in an instant. This has happened to the tune of hundreds of millions of dollars (billions taken together) for several DeFi projects before. However, Forex Shark is an experienced developer with multiple projects under his belt, none of which (at least so far) have been hacked. The fact that the DRIP Faucet has been running for nearly a full year also speaks volumes to the code’s security. Usually, if there is a vulnerability, some hacker would have found it by now. Of course, this is not a guarantee that a vulnerability doesn’t exist (maybe no one found it yet). But the code is open-source, so anyone can inspect it. This is a double-edged sword, since both ethical whitehatters and malevolent blackhatters can easily access the code. The DRIP code has further been audited (reviewed) by Slither, a professional company specializing in finding vulnerabilities in computer code. The report returned no finds of any vulnerabilities, which you can read for yourself here: https://dripcommunity.org/wp-content/uploads/2021/07/Slither-Technical-Audit-DRIP-Network-v7.pdf You can see DRIP passed the Slither audit with flying colors (all vulnerability categories were marked as “PASS”).

The only two issues found were acknowledged by Forex Shark but unchanged because they aren’t actually issues at all. See below for the clarification on these two issues.

While a long history of no hacks/exploits and a successful audit are no guarantees for the future, they are signs that can make us feel comfortable that the code is probably safe. Again—not guaranteed, but likely. However, if a hack does occur, we’re probably going to lose most/all of our investment nearly instantly. That’s why you should not invest more than you’re comfortable losing. Rug Pull A rug pull is when the developer “pulls the rug” from under us. Basically, Forex Shark would take all the money out of the contract and funnel it to his own accounts or wherever he wants. This is always a risk for DeFi projects, since DeFi is largely unregulated and anonymous. We don’t actually know who Forex Shark is (he is NOT doxxed, meaning his real life identity is not public info). However, he has done a KYC (know your customer) with auditors, which means submitting proof of his identity and being verified. Only the company knows his real identity, and in the case of illicit conduct, investors are supposedly able to turn to the company to ask for accountability, so we can sue Forex Shark for pulling the rug. That’s all in theory. In reality, many past DeFi projects also had KYCed (or even fully doxxed) founders/developers who performed a rug pull, and there was no help given to go after them legally. So it’s debatable whether KYC is even a legitimate protection for investors. It’s an extra expense on the developer’s part because he needs to pay for this KYC service, which may have been money better spent on developing, marketing, or anything else. In any case, Forex Shark is KYCed but not doxxed, so there is some level of assurance here. User Error This is by far the biggest risk to crypto/DeFi investors. By no fault of the project, inexperienced (or even experienced) investors lose their money because they interacted improperly with the project or got phished/scammed. If you purchase BNB on the wrong network (the correct network is Binance Smart Chain, also known as BEP20/BSC, not BEP 2 or Binance Chain without the word “smart”) and try to transfer it to the wrong account, you may lose your coins (or need to pay fees to bridge them to the proper network chain). If you click “Confirm” in your MetaMask on fake phishing websites, you’re basically approving the scammers to steal your money. If you reveal your Secret Recovery Phrase (aka Seeed Phrase) or password to anyone, including scammers posing as MetaMask or DRIP official support staff, you will lose all your coins! If you screenshared, took a picture, typed the Seed Phrase on the computer, copy and pasted it, printed it out, etc., then you are likely screwed. It takes time learning the technical intricacies and safety practices of crypto, so test out small amounts at first until you are comfortable with what you’re doing. Then you can start transacting with large amounts. Crypto Gets Banned Currently, the crypto and DeFi space are largely unregulated, but that will slowly change. If your government bans or restricts your DeFi interactions, that could potentially affect DRIP. Fortunately, if crypto does get banned in your local region, you’ll probably have enough time to pull out of DRIP and convert to fiat money. However, you might not have reached anywhere close to your max payout yet, so you may be forced to convert at a loss. These black swan events are out of the control of the DRIP network, so it’s a systemic risk, not a DRIP-specific risk. Just be aware that it’s a possibility.

BNB Price Crashes

Since we cannot convert DRIP directly into fiat money but must first convert to BNB, which we then convert to fiat (or any other crypto), there will be some slippage (loss due to conversion rates) during the minutes you’re trying to exchange from DRIP to BNB to fiat. People worry about the price of BNB crashing, which it certainly can and has before. However, this is actually a small risk because the price of BNB doesn’t affect the price of DRIP. It simply changes the exchange rate between DRIP and BNB. If 1 DRIP used to be worth 0.095 BNB, but then the price of BNB crashes, now the same 1 DRIP might increase to be worth 0.19 BNB. But you have to act quickly to swap your BNB for fiat (or other crypto) because the longer you wait, the more BNB’s price fluctuates. Unless BNB crashes dramatically in a few minutes, you won’t lose more than a tiny percentage (maybe 1-2%, possibly less, even during wild swings). Act as fast as you can after you’ve sold DRIP for BNB, because you need to turn that BNB into fiat asap to lock in your rate. However, if you believe BNB’s price will go up, then you may want to hold onto BNB instead of selling it for cash. If BNB’s price goes up, then you also earn more. But this is outside the realm of DRIP now. Now you’ve entered traditional crypto trading. My main point about the risk of BNB’s price crashing is that it’s a small risk. You only risk a small slippage (exchange rate loss) if you get your BNB from MetaMask into Binance (or another exchange where you can easily sell BNB) and quickly swap for fiat money.

Centralized Exchange Freezes

Occasionally, centralized exchanges like Binance will freeze investors from making transactions on a particular network/chain or for a particular coin/token. Recently, Binance froze Solana (SOL) withdrawals because of high congestion on the Solana network. This angered many people because the price of SOL is fluctuating during this freeze, so they are unable to interact at the price points they desire. The risk is small but there. If you want to sell BNB for fiat and then withdraw back to your bank, but Binance (or your centralized exchange) has placed a temporary freeze, then you’re out of luck. You simply have to wait and hope when they allow transaction again, the price is still in your favor. Otherwise, you lose some money due to the fluctuating prices. This is a risk for ALL cryptos being transacted on centralized exchanges, not a DRIP-specific risk. Risks Conclusion Like all investments, there are risks to DRIP, but I feel they are relatively low-risk. In my opinion, the biggest risk is the illiquidity risk (caused by no new money flowing in), which is why many call DRIP a Ponzi. But it’s not a Ponzi; this risk is the same risk as any traditional stock or crypto investment. If no new money is entering the contract, then the total value locked (TVL) remains constant. And as people sell, this fixed TVL is redistributed among the existing investors, so some will profit, while others will lose. This is the reality of ALL investments, not just DRIP. The second biggest risk is a smart contract hack, which there isn’t much we can do as investors. So don’t invest more than you can bear to lose! For the potential of such high returns and immense protections to at least break even, I think DRIP is well worth investing in, but do your own research and make your own responsible decisions. None of this is financial advice, just my analysis and opinions for you to decide on your own. I take no responsibility for the results of your investment, so invest carefully!

If you’re ready to invest, though, please use my Team Wallet Buddy Link to lower your tax, help reward me a bit, and join my team. You’ll receive my direct support in setting everything up and talking strategy.

Doomsday Scenario: What if DRIP’s Price Crashes 99%?

The power of compound interest is so strong that you can buy high, sell low at a 99%+ loss, and STILL profit. WORST CASE Let’s take an exaggerated worst case scenario. Say you bought 100 DRIP tokens at the all-time high of $170/DRIP = $17,000. And let’s assume you did not sign up under a Team Wallet, so you are paying higher taxes. Also, let’s say you are not participating in the referral rewards program. So your only earnings are the 1% daily interest. After the 10% deposit tax, your 100 DRIP becomes 90 DRIP deposited. After you compound long enough, you’ll eventually reach your max payout of 43,600 DRIP tokens or so (after taxes, but before selling.) A 10% sell tax brings that to 39,240 DRIP. Let’s say you sold all of those at a 99.7% loss ($0.50/DRIP). That’s still $19,620. Then subtract your BNB gas fees (estimated $1,500) = $18,120. Let’s say there was 2% slippage (pretty high) to convert DRIP to BNB to fiat money. That leaves you $17,756.60. That’s still a $757.60 profit from your initial investment of $17,000! Do you know of any other investment that can crash 99.7% and STILL make you a profit? This is the power of compound interest at play. MEDIUM CASE Let’s assume a more realistic scenario now. Say you bought 100 DRIP at $50 = $5,000 initial investment. At the end, you earn 39,240 DRIP. Say there was some loss, but not a crazy amount. Let’s say the price crashed to $25 (50% crash). That’s still 39,240 x $25 = $981,000. Even with a 2% slippage from DRIP to BNB to fiat money, that’s still $961,380, leaving you a profit of $956,380! Nearly a millionaire! AMAZING CASE Forex Shark is working hard to improve and increase the utility of DRIP. He’s out there securing partnerships, launching new projects that utilize DRIP, and marketing. All of this is intended to help increase DRIP’s popularity, so the price can increase. Let’s assume you invested at $50/DRIP and purchased 100 DRIP tokens = $5,000 initial investment. Now say the price of DRIP doubled to $100 (which is still far lower than the $170 all-time high). 39,240 x $100 = $3,900,240. After 2% slippage from DRIP to BNB to fiat money, that’s 3,822,235.20. Subtract the initial $5,000, and your profit is $3,817,235.20. Nearly $4m! You’re officially a multi-millionaire. The risk: reward ratio for DRIP is just too good for me to pass up, which is why I invested. If you like what you’ve read, maybe you’ll join my Team.

Conclusion: Your Next Steps

Do your own research—this article is a good start. Only invest what you can bear losing. Even if you deem the risk of losing it all to be extremely small, wild and unexpected things happen in crypto and DeFi, so be prepared to lose it all. If you understand the risks, feel free to join my Team by following the detailed steps in the “Step-by-Step: How to Invest in the DRIP Faucet” section above. The first step is to open a Binance account and deposit your money (10-business day waiting period before you can begin investing in DRIP), as well as a MetaMask Wallet. Please reach out to me at [email protected] if you have any questions! Good luck!

How I’ll Make Millions With DRIP

How I’m Going to Become a Multi-Millionaire with DRIP

TL; DR: Summary of DRIP

Crash Course: The Basic History of Crypto

Decentralized Apps (dApps) and Decentralized Finance (DeFi)

What Is the DRIP Network?

Too Good to Be True? Tokenomic Analysis for Sustainability

Step-by-Step: How to Invest in DRIP Faucet

How to Top Off Gas (BNB Fees) in MetaMask

Is DRIP a Ponzi/Pyramid/MLM Scheme?

Whale Tax Explained

The Round-Robin Referral System Explained

Understanding the DRIP Dashboard & Stats

How to Buy BR34P Tokens

How to Turn Your DRIP Earnings into Actual Cash

Optimal DRIP Strategies for Regular Passive Income or Max Profits

Maximize Profits with “Multiple Wallets” Strategy

The Risks of DRIP: Is It Sustainable?

BNB Price Crashes

Centralized Exchange Freezes

Doomsday Scenario: What if DRIP’s Price Crashes 99%?

Conclusion: Your Next Steps

Safely 2-3x Your Investment in 1 Year: Yield Nodes

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How I’m Going to Become a Multi-Millionaire with DRIP

TL; DR: Summary of DRIP

Crash Course: The Basic History of Crypto

Decentralized Apps (dApps) and Decentralized Finance (DeFi)

What Is the DRIP Network?

Too Good to Be True? Tokenomic Analysis for Sustainability

How to Sign up for DRIP

Step-by-Step: How to Invest in DRIP Faucet

How to Top Off Gas (BNB Fees) in MetaMask

Is DRIP a Ponzi/Pyramid/MLM Scheme?

Whale Tax Explained

The Round-Robin Referral System Explained

Understanding the DRIP Dashboard & Stats

How to Buy BR34P Tokens

How to Turn Your DRIP Earnings into Actual Cash

Optimal DRIP Strategies for Regular Passive Income or Max Profits

Maximize Profits with “Multiple Wallets” Strategy

The Risks of DRIP: Is It Sustainable?

BNB Price Crashes

Centralized Exchange Freezes

Doomsday Scenario: What if DRIP’s Price Crashes 99%?

Conclusion: Your Next Steps

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