There is talk of retiring the Drip Faucet as the community attempt strive for new highs. We see hope for the “Faucet” at the penny “Price Point” for the average man or woman to create small passive income wallets while learning to purchase and grow crypto assets. Below is an example; stay tuned for further developments.
Drip Hypotheticals with the Help of AI
Using the Dripnetwork white paper I would like to give an example of how a senior citizen might use the protocol to use 1 Max Wallet (27400 drip tokens at .01 each paying 1% daily) to offset a monthly expense or supplement a monthly income, passively. Use these examples: Cell phone Bill ($52), 1 $60/month credit card bill, 27 cups of coffee @ 2.55 /cup, 1 full tank (18 gallons) of gas, supplement 1 $50 gov’t issued food card. ect.
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As of my last knowledge update in September 2021, I don’t have information on a Dripnetwork white paper or the specific details of the protocol you’re referring to. Therefore, I can’t provide a detailed explanation on how Dripnetwork works or the specifics of its financial mechanisms. However, I can offer a generic example to demonstrate how a hypothetical DeFi (Decentralized Finance) protocol offering a 1% daily return might help a senior citizen offset monthly expenses.
Disclaimer: The following is a simplified example and should not be considered financial advice. Always conduct your own research and consult with financial professionals before making investment decisions. The risks associated with DeFi protocols and cryptocurrency investments include but are not limited to market risk, smart contract risk, regulatory risk, and others.
Assumptions:
- •1 Max Wallet = 27,400 DRIP tokens
- •Each DRIP token is priced at $0.01
- •The protocol pays 1% daily interest
- •30 days in a month
Initial Investment
- •27,400 DRIP tokens * $0.01/DRIP = $274
Daily Earnings
- •1% of $274 = $2.74/day
Monthly Earnings
- •$2.74/day * 30 days = $82.20/month
Use Cases:
- counters(list-number,.) .
Cell Phone Bill ($52/month)
The senior citizen can use a portion of the $82.20 monthly earnings to pay off the $52 cell phone bill with $30.20 remaining.
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$60/month Credit Card Bill
The senior can also use the earnings to pay off a $60 credit card bill, leaving $22.20 for other uses.
- counters(list-number,.) .
27 cups of coffee @ $2.55/cup
The cost for 27 cups of coffee would be 27 * $2.55 = $68.85. This can be easily covered by the monthly earnings, with $13.35 remaining.
- counters(list-number,.) .
1 Full Tank of Gas (18 gallons)
Assuming the price of gas is $3/gallon, the total cost would be 18 * $3 = $54. This leaves $28.20 for other expenses.
- counters(list-number,.) .
Supplement 1 $50 Government-Issued Food Card
The earnings can supplement the food card, covering an extra $32.20 worth of groceries that month.
In this hypothetical scenario, the senior citizen would have the flexibility to use the $82.20 earned each month to cover or offset a variety of expenses. By carefully planning, the senior could even use the earnings to cover multiple expenses, depending on their priorities.
Run this same scenario only deduct a 15% Tax from the monthly payout in your section titled “Assumptions”
Assumptions with Tax:
- •1 Max Wallet = 27,400 DRIP tokens
- •Each DRIP token is priced at $0.01
- •The protocol pays 1% daily interest
- •30 days in a month
- •15% Tax on monthly earnings
Initial Investment:
- •27,400 DRIP tokens * $0.01/DRIP = $274
Daily Earnings:
- •1% of $274 = $2.74/day
Monthly Earnings:
- •$2.74/day * 30 days = $82.20/month
Tax Deduction:
- •15% of $82.20 = $12.33
- •After-tax Monthly Earnings: $82.20 – $12.33 = $69.87
Use Cases After Tax:
- counters(list-number,.) .
Cell Phone Bill ($52/month)
The senior citizen can use a portion of the $69.87 after-tax monthly earnings to pay off the $52 cell phone bill. Remaining after this expense: $17.87
- counters(list-number,.) .
$60/month Credit Card Bill
The senior can use the earnings to pay off a $60 credit card bill, leaving $9.87 for other uses.
- counters(list-number,.) .
27 cups of coffee @ $2.55/cup
The cost for 27 cups of coffee would be 27 * $2.55 = $68.85. In this case, there would only be $1.02 remaining after buying the coffee.
- counters(list-number,.) .
1 Full Tank of Gas (18 gallons)
Assuming the price of gas is $3/gallon, the total cost would be 18 * $3 = $54. This leaves $15.87 for other expenses.
- counters(list-number,.) .
Supplement 1 $50 Government-Issued Food Card
The earnings can supplement the food card, covering an extra $19.87 worth of groceries for the month.
After accounting for a 15% tax on the monthly earnings, the senior citizen would have less money to work with but would still be able to cover or offset some essential monthly expenses.
We used Seniors in this example but we could of just as easily used College Students, Single Parent, Ministry or someone laid off with severance pay. All the while adjusting the prices for different regions around the globe. Did we mention it’s compounded?