“A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers.” ~https://www.investopedia.com/terms/p/ponzischeme.asp
You should know what a Ponzi Scheme is before you accuse Drip of being one.
First thing: a Ponzi relies on everyone referring, or bringing in new “investors”. DRIP does not require referrals, at all. While they do ask you to enter a Buddy Address, you can choose to just support marketing and development, if you wish.
Deposit 100 DRIP and get 1 back every day, for 365 days.
Unlike a pyramid scam, levels for each participant are capped at 15. 10% of deposits are distributed so that everyone up the chain benefits. If you received a Reward from someone that round, the Reward skips you, and goes to the next person.
Withdrawals over USD$1M receive what’s called a Whale Tax. This funds the program, as well as keeps the price stable from huge selloffs.
DRIP does look like a Ponzi, on the surface, if you don’t understand how it is funded.
Here are a list of ways DRIP funds its program.
10% tax:
- Sell
- Buy (outside of the Fountain)
- Depositing or Staking
- Transferring between wallets
- Airdrops
- Moving between ledgers
- Sending
- Claiming (withdrawing)
If you buy from the Fountain, the tax is waived.
Hydrating, otherwise known as compounding is taxed at 5%.
Let’s not forget about the Whale Tax. These are the taxes on withdrawals exceeding USD$1M and are added on to the fees listed above.
- >= 1M = 5%
- >= 2m = 10%
- >= 3M = 15%
- >= 4M = 20%
- >= 5M = 25%
- >= 6M = 30%
- >= 7M = 35%
- >= 8M = 40%
- >= 9M = 45%
- >= 10M = 50%
This tax also goes into funding the DRIP system, and keeps the huge withdrawals from selling off the system and cratering the price. It helps achieve price stability.
As you can see, this is not a Ponzi. Can it eventually all come crashing down? Well, the value of each token can, if there is a huge sell-off.
If you’re interested in joining, I’d really appreciate you using my Buddy Address.
DRIP FAUCET (Click on “Buddy Detected): https://drip.community/faucet?buddy=0x7070063D1C8819CF7Cca432CBc83bF2F1a9477E7
Or go to https://drip.community/faucet and enter by Buddy Address: 0x7070063D1C8819CF7Cca432CBc83bF2F1a9477E7
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