Economics Of DriipCoin

4 min readJun 16, 2021

Driipcoin is a digital asset designed to work as a currency.

Classification

DriipCoin is a digital asset designed by its inventors to work as a currency. It is commonly referred to with terms like: digital currency, digital cash, virtual currency, electronic currency, digital gold, or cryptocurrency.

The question whether driipcoin is a currency or not is disputed. Driipcoins have three useful qualities in a currency, according to One Of DriipCoin Economist : they are “semi-hard & semi-easy to earn, semi-limited in supply based on driipcoin economics and lock ups and verifications”. Economists define money as a store of value, a medium of exchange and a unit of account, and agree that driipcoin has some way to go to meet all these criteria. It does best as a medium of exchange, the ability of driipcoin to act as a stable store of value, and retailers accepting driipcoin using other currencies as their principal unit of account.

Though the fact is “Driipcoin may have some attributes in common with what we commonly refer to as money, but differ in many important aspects, they are certainly not tangible wealth and cannot be hidden under a mattress like cash and gold bars.” stating “Driipcoins are funds within the plain meaning of that term. — Driipcoins could be accepted as a payment for goods and services or bought directly from an exchange with a bank account. They therefore function as pecuniary resources and are useable as a medium of exchange and a means of payment” as a decentralized virtual currency.

Crypto-Economics

Crypto-economics brings together the fields of economics and computer science to study the decentralized marketplaces and applications that can be built by combining cryptography with economic incentives.

It focuses on individual decision-making and strategic interaction between different participants in a digital ecosystem (e.g. users, providers of key resources, application developers etc.), and uses methodologies from the field of economics — such as game theory, mechanism design and causal inference — to understand how to fund, design, develop, facilitate the operations and encourage the adoption of decentralized marketplaces and related services and digital assets.

The resulting “digital economies” often require the definition of a monetary, fiscal, privacy and innovation policy. Moreover, they need effective governance to ensure that the platform maintainers can upgrade the underlying software protocols over time in response to changes in the environment, technology or market needs.

Crypto-economics or Tokenomics (token economics or crypto-economics) study the economic institutions and policies of the distribution, production, and distribution of goods and services that have been tokenized. Blockchain technology has become the driving force of innovation on the internet. This includes such things like token distribution as well as how they can be used to incentivize positive behavior in the network.

In the case of DriipCoin

50% of supply is allocated for Public sale

LP is 25%

10% Strategic partnership

5% supply to ecosystem

5% of the total supply to be distributed for free in form of Donation, Utility Rewards, Bounty & Airdrop Supply

5% : Team allocation

Buying and selling

Driipcoins will be available to buy and sell on and offline. Participants in online exchanges will be able to offer driipcoin buy and sell bids. Using an online exchange to obtain cryptocurrencies entails some risk but driipcoins wallet security system though not perfect but could secure your funds if your security access is not been exposed by you, and, according to a study published in April 2013, 45% of exchanges fail and take client crypto with them.

Exchanges that driipcoin will be listed on will have to follow the measures to provide proof of reserves in an effort to convey transparency to users. Offline, driipcoins will offered to be purchased directly from an individual or at a Crypto ATM. Driipcoin supported machines will however not work like traditional ATMs. Crypto kiosks are machines connected to the Internet, allowing the insertion of cash in exchange for cryptos like driipcoins. Crypto kiosks do not connect to a bank and may also charge transaction fees as high as 1–2% and exchange rates US$5 over rates from elsewhere. Depends on the company that bring them up.

Acceptance by merchants

Delays processing payments through the blockchain of about 3 seconds make driipcoin use very easy in a retail setting. Though, most driipcoin transactions will take place on a cryptocurrency exchange, rather than being used in transactions with merchants.

The transaction speed, little fee, user-friendly wallet and exchange UI makes it very easy and good for merchants implementation.

Political economy

The decentralization of money offered by virtual currencies like driipcoin has its theoretical roots in the Austrian school of economics such as subjective theory of value especially with Friedrich von Hayek in his book Denationalization of Money: The Argument Refined, in which he advocates a complete free market in the production, distribution and management of money to end the monopoly of central banks.

Driipcoin appeals to tech-savvy libertarians, because it so far exists outside the institutional banking system and the control of governments. “who perceive the state and banking sector as representing the same elite interests, […] recognizing in it the potential for collective direct democratic governance of currency” [ Proof of Communism], Driipcoin has been described as “remov[ing] the imbalance between the big boys of finance and the disenfranchised little man, potentially allowing early adopters to negotiate favorable rates on exchanges and transfers — something that only the very biggest firms have traditionally enjoyed” about freeing people from the tyranny of centralized trust.