Drip Network
Crypto Overview
Overview
Drip Network is a DeFi protocol launched in 2021 that operates on the Binance Smart Chain. The project claims to provide a 1% daily return through a tax-based system where transactions are taxed and redistributed to token holders.
Purpose and Utility
The stated purpose of DRIP is to create a sustainable reward system through transaction taxes and deposits. Users can 'hydrate' (compound) or 'claim' their rewards. The platform implements a tax system on transactions that helps maintain the reward pool.
Business Model Analysis
The core mechanism relies heavily on new deposits to sustain the reward system. The project charges a 10% tax on transactions which gets redistributed. There is also a referral system that rewards users for bringing in new participants.
Real-World Adoption
The platform has seen significant user adoption since launch, though activity levels have fluctuated. On-chain data shows regular transaction volume, primarily related to deposits and reward claims.
Development Activity
The project maintains an active development presence, with regular updates to the protocol. The team has expanded the ecosystem to include additional features like the DRIP Garden and Fountain.
Token Distribution
A significant portion of tokens is held in the contract itself, with the remaining distributed among users. The founder's wallet holdings are publicly visible on the blockchain.
Revenue Model
The primary revenue mechanism is based on transaction taxes and new deposits, which are used to pay existing participants. This structure closely resembles a high-yield investment program with elements of a referral system.
Crypto Impact
To assign a comfort level investing in Drip Network from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Drip Network.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.