“Wen DRIP?” — What Will Happen When DRIP Goes Deflationary?

Ryan
8 min readSep 24, 2023

| IF you haven’t already heard, DRIP is about to undergo a drastic structural change. Compounding is about to be disabled, and new Faucets are about to be discontinued. But DRIP will live on through DDD and future utilities. Read about it here!

DRIP has made many people millionaires. I think a lot of projects have the potential to do this … at least in the early days of any token’s history. This is because, initially, supply is low, but demand is high.

As time goes on, however, virtually all alt tokens diminish in value due to emissions to either pay out rewards for staking, or for other utilities. This constant emission to allow the smart contracts to function is called inflation.

So, by an unfortunate series of events, most crypto tokens diminish in value due to increased or inflated supply, or “inflation.”

The same kind of thing is happening in the economy even now. Governments keep printing money without proper collateralization, so the buying power of the dollar decreases. In other words, it appears to cost more dollars to buy something than before, only because the value of the dollar has decreased. The value of the dollar is still called $1, but it’s the relationship relative to the cost of goods and services that perceivably changes.

So, imagine our our dismay as DRIP reached a peak of something like $164, and has dropped in value, due to a combination of paying out rewards by minting or “inflation”, to a disappointing $0.02 cents (at the time of this article).

You could say it’s one of those “glass half empty, glass half full” situations. For most, the value of our overall investment has dropped to nil, but to newcomers, one could buy DRIP at 2 cents, and if the plan works and DRIP even goes to 4 cents, then they doubled their money.

In this article, I will talk more about my thoughts on:

  • What is Planned for DRIP and Why?
  • The Good and Bad Ways This Could Go
  • What I Plan To Do

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Ryan

Insider Tips & Resources for passive income w/ focus on trading, crypto, and affiliate marketing. Top Writer on Medium.com for Investing and Finance