2022-04-15 Update: DripDropz now provides an estimated asset value!
If you’re already familiar with cryptocurrencies then you’ve probably heard of Cardano. If not, check out Cardano Foundation to learn more. In short, Cardano is a first-layer decentralized cryptocurrency, like Bitcoin and Ethereum, and is the first to establish itself based on peer-reviewed research based on evidence-based methods. It is currently, as of 2022-04-10, the 8th traded cryptocurrency by volume, according to coinmarketcap.
Cardano assets are available natively on the Cardano blockchain which is a big difference between Cardano and other cryptocurrencies like Bitcoin and Ethereum. DripDropz takes advantage of this capability by supporting the distribution of various tokens that are distributed by Cardano dApps directly to Cardano wallets, and chain-wide distributions.
Cardano doesn’t currently have a functionality to deliver assets directly to wallets that have been initiated by a dApp. DripDropz acts as a broker for this process. Given your wallet address, DripDropz searches the Cardano blockchain to identify any assets that have been offered to your wallet address, and allows you to move the asset to your wallet, by storing it in transaction. Let me explain.
Assets on Cardano can’t be transferred by themselves. They are a second-layer of data that can only be moved from wallet to wallet as part of a first-layer transaction. In other words, Cardano assets can only be transferred when ADA is also moved in the transfer. This is why DripDropz requires you to send 3-5 ADA to obtain your assets. They take a small administrative fee, and the transaction fee that DripDropz is charged when they send you your tokens; about 1.9 ADA. They then send you back the remainder of your ADA, with your tokens attached.
DripDropz currently distributes over 20 tokens and that continues to grow each and every epoch.
How Does It Work?
It’s actually quite simple. You head on over to DropDropz.io, enter your Cardano Wallet, and hit ‘Check my Dropz’. The service will then search the blockchain to determine if any tokens are available. You must have a wallet that has staked for at least one epoch. The tokens available to your wallet will then be displayed. You can select 10 tokens at a time, a constraint of the current block size. Once you select the tokens you want, and claim them you’ll be asked to send 5 ADA as a transport vehicle (assets can’t move by themselves).
Your 5 ADA is used to pay for any transfer fees ~1.9 ADA, and the remainder is sent back to your wallet with the tokens you chose, attached. Your transactions will look a little something like this.
If you have fewer than 10 tokens to claim you may be asked to send less than 5 ADA. The transfer fees remain the same.
How Often Can I Drip?
Tokens distributed to your wallet during previous epochs can’t be claimed, at this time. So make sure you go back and claim your dripz every epoch!
What Are They Worth?
That depends. Many of the tokens distributed are meme assets which carry little to no value outside of other people interested in those assets. This type of meme economy doesn’t grow well.
Other assets available include in-game currencies for games built on the Cardano blockchain. These tokens are often used for in-game items and may carry more value over your standard meme coin as in-game economies can drive up the value of these types of tokens. These assets can be highly volatile.
The value of tokens is in the growth of the Cardano block chain. A higher usage of the blockchain means an increased demand on a decreased supply, which drives up the value of everything on it! As these tokens begin to reach the end of their distribution cycles their values will quickly become apparent.
What Assets Available on DripDropz Are The Best?
Again, that depends. The value of Cardano assets, like real assets are are completely dependent on how the real-world chooses to value them. Personally, I’m not interested in meme tokens, but do claim a couple of different one’s to diversify my asset holdings.
Recently, DripDropz added some categorization to tokens to allow you to distinguish asset types.
Each asset category will have value to everyone differently. Governance and DeFi assets hold the most inherent value by offering their holdings either voting powers, as is the case with governance tokens, and yield farming, as is the case with DeFi assets.
Utility and Game tokens have the same general purpose of providing a digital representation of a real world object. Utility and Game tokens allow you to take your ADA and transfer it into whatever local currency may be needed.
Meme tokens are the most volatile and typically hold the least value.
As of April, 2022, DripDropz.io now provides an estimated value on tokens where the value can be calculated. You’ll see the estimated value listed on each token card, in both ADA and US Dollars. Use the estimated values to decide whether a token will be of valuable to you, or others.
Can DripDropz Remember My Favourite Assets?
You bet! Sign-up for an account to gain access to the Token Preferences feature in the account dashboard. This will give you the option to choose assets that you like that will automatically be selected (up to 10) any time that you Drip It, and your least favorite assets that will be hidden completely.