In the beginning of August, Dropil saw a change go into effect for the Dex valuation system that was meant to ensure a more fair and sustainable platform. The end goal of the change was to account for, and protect against, unsustainable swings that often occur to tokens pinned to Bitcoin; in addition Dropil features measurements against fiat such as $USD compounding these swings. It has become clear that the solution put in place only protected the long term sustainability of the token from certain types of market movement, while leaving it susceptible in long running severe market downtrends, such as the one currently facing crypto. As always, we at Dropil were willing to put the satisfaction of our user base before short term financial burdens for the company and have continued to utilize the valuation at the expense of the company for sometime. The current system has been causing payouts at a 3-5x multiplier or more from the vault as the overall crypto market downtrend has continued. While we here at Dropil do wholly believe in the long term success of crypto, we must add an amendment to the valuation to make it a more accurate and fair system to preserve the sustainability of a project that still has much to bring to the community.

Currently the average user’s Dex funds are valued at around $0.005 and yet Dropil is paying out at approximately $0.001X which is causing payouts between 3-5x more than should be due to the price difference. The major cause of the lower price of the token stems from its BTC and ETH pairings dragging the price down and in is no way representative of a market sentiment against the token or project. This effect is seen across the entirety of the crypto market space sometimes to severe detriment and sometimes to astounding growth.

For example with current system in place: Dex earns you $100 USD value, yet we are paying you $400 in Drops because of the price difference in your Dex funds to current Dropil price. Example of payouts with new system in place, when your cycle ends and you get paid, you will receive X% of your total Drop balance in Dex, or X% of your total USD balance converted to Drops at current 24-h average, whichever is lesser. X being whatever your payout percent is for that cycle. The displayed $USD value and payouts from Dex will be calculated the same way as they are currently as that remains an accurate reflections of Dex’s earnings. The amount of Drops received at the completion of a cycle is the only part affected by this amendment.

This update will go into effect on December 11th at noon (12PM) PST. The Dropil team will continue to work tirelessly to bring the best possible products and services to market despite up or down trends, we are here for the long haul!