#### What is Drip Network? Drip Network (DRIP) is a unique platform in the [cryptocurrency](https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency) space that aims to provide a daily return on investment through its deflationary mechanism. The DRIP token, a BEP-20 token on the Binance Smart Chain, is designed to provide users with a 1% daily return on their principal for up to 365%. This is achieved through a 10% tax on all transactions, which is then [distributed](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/distributed) as rewards. The platform's unique approach to rewards and its deflationary nature make it an intriguing player in the cryptocurrency market. #### How does Drip Network work? Drip Network operates through a unique system of daily rewards, a referral system, and a compounding mechanism. Users can acquire DRIP [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token) either from its native "fountain contract" on the site, thereby avoiding the 10% deposit tax, or from [Pancakeswap](https://www.coinbase.com/how-to-buy/pancakeswap), where the tax applies. Once acquired, these tokens can be deposited into "The Faucet", a feature of the Drip Network that provides daily rewards. The deposited tokens are sent to a burn address, contributing to the deflationary nature of DRIP. Additionally, users can increase their principal investment and daily reward through a process called "hydrating", which incurs a lower tax rate. #### What are the potential use cases for Drip Network? Drip Network seeks to provide a unique investment opportunity for users in the cryptocurrency space. By offering a daily return on investment, it aims to attract users looking for consistent rewards. The platform's referral system also encourages user growth and community building, as users can earn rewards from newly referred parties. Furthermore, the platform's "Reservoir" feature allows users to provide [liquidity](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/liquidity-) to the DRIP/BNB pool and receive a share of the transaction tax, creating another potential use case for the platform. #### What is the history of Drip Network? Drip Network was launched in July 2021 by two anonymous accounts known as "Forex_Shark" and "BB". Despite the anonymity of its founders, the platform has managed to establish itself in the cryptocurrency space. The platform's roadmap includes plans for a cross-chain bridge to expand beyond the Binance Smart Chain and [NFT](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/nft) rewards for investors that achieve specific goals. However, as with any cryptocurrency project, potential users should proceed with caution due to the inherent risks associated with investing in projects launched by anonymous accounts.