| 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.
