Finding The DRIP

It's there, constantly flowing, in a steady rhythm. Whether you see it, hear it, or choose to ignore it, it's there. Some are actively looking for it. I'm one of those always looking for the DRIP.

(Created with Bing)

No, I'm not talking about a leak, or a faucet left on somewhere. I'm talking about Dividend Reinvestment Plans, with respect to tokens on Hive Engine and Tribaldex. There are quite a few tokens that will pay out tokens as rewards, but this article will focus on the ones that pay you in Hive, and reinvesting their dividends back in to compound my returns.

Before going any further, let me preface everything I'm about to say with:

• I'm not a financial/investment expert
• I'm still new to Hive, so these are just personal experiences and findings

I prefer tokens that pay me daily Hive dividends, but I'm not opposed to those that pay weekly. It all depends on who's running the project, their track record and the market's sentiment about the token in terms of price and price volatility. I've mainly limited my focus to three tokens. Purely for convenience, they're listed alphabetically and not in order of best to worst, or anything else like that.

DAB
Holding this token pays you daily Hive dividends. I currently hold 606 and the dividends I get are about 3 Hive per day. I mint roughly 6 per month staking DBOND, and I actually save up these dividends to pay out prizes in HSBI in my weekly Pay It Forward posts.

Breakdown:
~0.005 Hive earned per token
~0.25% yield at a cost of ~2 Hive per DAB

DRIP
Holding this token pays you daily SWAP.HIVE dividends. They're also currently paying 150% dividends in additional DRIP tokens for staking them, but I believe they intend to stop that in June. I currently hold 80 and the dividends I get are about 0.0236 SWAP.HIVE per day.

Breakdown:
~0.000295 SWAP.HIVE earned per token
~0.022% yield at a cost of ~1.3 Hive per DRIP

EDS
Holding this token pays you weekly in Hive dividends. I currently hold a little over 100 and the dividends I get are about 0.48 Hive per week, or 0.0685714 Hive per day.

Breakdown:
~0.0048 Hive earned per token
~0.369% yield at a cost of ~1.3 Hive per EDS

Looking at the numbers, EDS gives a slightly higher yield per token than DAB, which gives a slightly higher yield than DRIP. Where things get interesting is when you factor in the "tokenomics" of DAB.

DAB Tokenomics
DAB can be purchased on the open market, but you can also mint it by buying DBOND and staking it (You need around 215 DBOND staked to win at least one mining lottery per day). It has a cap of 10,000,000 but only maybe 10,000 have been minted so far.

DBOND currently costs 1 Hive each, but there is only a small amount for sale at that price and then no more will be sold by the developers. After that, the market dictates the price. There's a maximum mintage allowed of 1,000,000 DBOND. Only about 100,000 is in circulation with about maybe 5,000 left on the market. The rest can only be minted by staking DAB. Interesting symbiotic-esque relationship, right?

EDS Tokenomics
EDS has cap of 500,000 which is far less than DAB. There are currently a little over 50,000 in existence between the market and people holding them. The only ways you get it are by buying it on the market, delegating to @eds-vote, buying EDSM or EDSMM to mine it, or sending HBD to @eds-d to get EDSD tokens and mint them that way.

My Strategy
Due to the more limited mintage of EDS, and because there are a larger variety of ways to mint/mine it, I'm going after it a bit harder and faster than DAB.

I will still build up my investment in DAB, but I have more time on this one and my main concern will be acquiring as much DBOND as possible, since the supply of that will run out long before we get anywhere near the 10,000,000 cap on DAB.

Conclusion
If you're looking for options, all three are great. If you're looking to start investing with the least amount of capital, I'd recommend starting with building a stash of EDS by delegating to @eds-vote or sending HBD to @eds-d. If you have more capital to work with, I'd buy DBOND as close to 1 Hive each as possible, stake it, and start minting DAB.

I hope this article was helpful. Good luck with your investments!

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