Distribution of Earnings

80% Incentivisation of Stability & Value Provision

80% of all Platform Earnings collected via token trading fees and ETH brokerage fees are used to market buy DROPS Token. These purchased tokens are then used to encourage the provision of value and stability to the ecosystem via their distribution to liquidity providers and token holders. This distribution occurs in accordance with the following tiered system.

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Tier 1: Liquidity Providers

Access Requirement: Staked DROPS UNI-V2 LP. | Total Tier Share of Earnings: 40%

DROPS Token liquidity providers bring both stability and value to the ecosystem. By strengthening the liquidity of the DROPS Token, liquidity providers facilitate its sustainable use within the marketplace by allowing for buys & sells to occur with minimal price impact.

Tier 2: Large DROPS Token Holders

Access Requirement: 50,000+ DROPS | Total Tier Share of Earnings: 30%

Large holders of the DROPS Token bring substantial value to the ecosystem. By increasing the value of the DROPS Token itself, large holders encourage its use within the marketplace.

Tier 3: All Drops Holders

Holding Requirement: DROPS Token (Any Amount) | Total Tier Share of Earnings: 10%

Other holders of the DROPS Token also bring value to the ecosystem by increasing the value of the DROPS Token itself. They both stimulate the Token’s economy and encourage its use within the ecosystem.

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20% Capital Injections (Buy & Burns)

20% of all platform revenue generated via ETH brokerage fees and token trading fees is used to perform “Capital Injections” on the DROPS Token, also commonly referred to as Buys & Burns.

This practice entails executing market buys on the DROPS Token and subsequently burning the totality of the purchased supply. This causes both price sustainability and sustainable deflation, simultaneously decreasing the total DROPS supply available on the market while increasing Token value.