profit

Drip – How often to claim to get most profit?

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Welcome to another episode of our Drip journey. Please feel free to read my other articles about drip like “I joined the Drip community – Ready to make millions“, “Drip – What is the BR34P token used for?” and “Drip – What are the risks?” if you are new to Drip.

Today we look at getting the maximum out of the 1% daily reward and how often should we claim. I am aware of the more complex strategies, but lets have a look at the simple technics today and cover the more complex strategies a bit later in our series.

So Drip pays out 1% on a daily basis on your deposited tokens in the faucet. So the more you deposit, the higher your reward. Have you read about compounded interest? Or interest on interest? This is exactly the big power of the system. The more often you compound, the higher your reward gets. You deposit every day your reward, your deposit increases and so does your daily reward. Exponentially.

But what happens if you re-compound just every other day, or weekly or even only once a month? How big is the difference in profit?

I did the calculations for exactly that.

The table above shows you the number of coins you will end up with if you re-compund daily, weekly or monthly with an initial investment of 10 Drip tokens. To my surprise the difference is not as big as I expected it to be. Of course you got the most profit out if you re-compound as much as possible. But you got also the fees you pay for each transaction. I ignored those for simplicity here. But as you can see, if you spend only a few minutes a month and re-compound only once every month you end up with only about 8% less coins after a year. With way less effort then pressing the buttons every day.

Conclusion

Daily reward is nice. Daily re-compound means you have to think about it each and every day and go to the faucet and claim. And pay the fees. To make it closer to passive income I think it is enough to re-compound just every other day, not having to think about Drip on really a daily basis. Unless you really enjoy. Then please, go for it.

Buddy/Team

If you are looking for a buddy and/or a team, feel free to use my link below. You are welcome to join:
https://drip.community/faucet?buddy=0xb3C253D80578f569cFd4fe2E916EDbF01B384577

Experiment completed – Ruby Mine is dead

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Remember when I started the experiment with Ruby Mine, a miner promising up to 8% profit daily? In this article? Well, the project is dead. Did I make money with it?

So I invested a tiny mount of roughly 20 USD in form of 0.25 Avax in Ruby Mine. With the 6:1 recommended – not to say enforced – methodology to reinvest 6 days in a row and only claim on the 7th day, I should have made my investment back into about 3 months. And I almost adhered to the 6:1 pattern as advised, only 1 exception, as you see further down.

So in the first week, I made the following rewards:

19.04.22Rewards0.00400
20.04.22Rewards0.01400
21.04.22Rewards0.01500
22.04.22Rewards0.01300
23.04.22Rewards0.01100
24.04.22Rewards0.01000
25.04.22Take profits0.01000

As you see, the rewards increased in the beginning, but already during the first week it started to slow down a bit. I took profits on the 7th day as advised. Here you also have to consider the transaction fee which were about 0.006 Avax, which leaves only 0.004, not only half of the claimed reward in reality. If my understanding is correct, these transaction are not only defined by the (Avalance) protocol, but also by the Ruby Mine smart contract. If you take profits, the fees where always roughly 3 times higher then rehiring.

Second week looked like this:

26.04.22Rewards0.00800
27.04.22Rewards0.00700
28.04.22Rewards0.00700
29.04.22Rewards0.00600
30.04.22Rewards0.00600
01.05.22Rewards0.00600
02.05.22Take profits0.00500

I guess you noted already the steady decline of the profits, didn’t you? Bravely as I am I took the “profit” on the 7th day again which was about 0.005 Avax with a transaction fee of around 0.01155. Correct, that is not a profit anymore; its a loss at the end.

Lets have a look at the third week:

03.05.22Rewards0.00400
04.05.22Rewards0.00400
05.05.22Rewards0.00400
06.05.22Rewards0.00400
07.05.22Rewards0.00300
08.05.22Rewards0.00300
10.05.22Take profits0.00400

Even so I increased my Rubies in the mine constantly due to rehiring, stayed stable or even decreased also in the 3rd week. I didn’t rehire on the 9th, as the transaction costs exceeded the potential amount to rehire. I processed the rehiring then the next morning expecting that a couple of hours do not “violate” the protocols expectation and at the same time not paying more transaction fees then the reinvested amount. That probably worked. Taking profits again, was not really taking profits: The transactions costs were again higher then the claimable amount: 0.004 and a fee of 0.01169. Again a loss.

I stopped the documentation then as the numbers declined even further. Well, as you know, the whole market dumped. And with these dumps, also the Telegram group and the Twitter account disappeared suddenly, Discord changed to Meta Miners, and with that Ruby Mine was and is a thing of the past. Not too many will miss it I guess…

Conclusion

So what did we learn from this little experiment:

  • If it sounds too good to be true, it probably is. Well, no one really believed in a sustainable project providing 8% profit daily in the long run without any other income stream besides bringing more people and their cash into the system.
  • If you still invest into a ponzi-scheme you have to be one of the first. But even then it is quite unlikely that you still make a profit as the system, like in this case, might run out of liquidity before you make your money back. Unless you bring a lot of referrals into the system and you profit from them indirectly in addition.
  • If you still like to invest, you have to ensure your profits are higher then the transactions costs. So don’t invest such a tiny amount into these systems as I did for this experiment.