Proof That Drip Is NOT a Ponzi!

There have been numerous articles claiming that Drip is a Ponzi or is based on so-called “ponzinomics” and it’s time to set the record straight because frankly I’m sick of hearing this kind of BS about Drip!

I’m a Drip enthusiast. I’ve made a lot of money from it. But just because I and a great many others have made a lot of money doesn’t mean it’s not a Ponzi. I’m well aware of that. So I’m going to explain to you in very simple, easy-to-understand terms why Drip is not a Ponzi scheme.

Ready? OK, please read this carefully. And if you’re one of the people who have written articles about Drip being a Ponzi, please read it slowly and let it sink in….

Any good developer can write a smart contract that produces a 1% return each day. Forget about price/value for just a moment and concentrate on the mechanics. It’s easy to create a smart contract that pays out 1% interest every day. Because it pays the interest in its native token, of which there is a huge supply AND, if that supply runs out, the contract can create (mint) new tokens as necessary.

But here’s the bit that so many people misunderstand: Until an investor makes a claim (withdraws some tokens from their account) it’s all just numbers on a screen. The smart contract updates the data in the blockchain which is then reflected in the user interface. And that’s all that happens. The daily rewards are just virtual ones.

Are you keeping up? I told you it was very simple. If you disagree with me already, please try and explain to me WHY you disagree. I’m eagerly awaiting your comments!

So with Drip we have a smart contract that pays interest daily based on the number of tokens an investor has staked. If you have 2500 tokens staked like I do then you will receive 25 tokens each day. But they don’t go into my wallet unless I hit the claim/withdraw button. They get recorded in the blockchain, sure, but they don’t have to exist as actual tangible tokens yet.

Taxes. And I know this is where some people throw their arms up in the air and say,

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