Redefining DROP, Cryptophyl’s native exchange token

Redefining DROP

On August 29th this year, we announced Cryptophyl’s own, native SLP-based token called DROP. The value proposition was simple yet attractive: get token airdrops when Cryptophyl lists a new token. This has proved very popular, helping grow our userbase and trading volume.

As part of our mission to grow the token economy, we constantly strive to deliver value to our users. Over the last months we’ve received constructive feedback from the Cryptophyl community. We’ve taken this feedback and combined it with our own innovative ideas to better the value proposition of DROP: from the issuance model to features for holders, we’ve redefined DROP.

Summary

  • 25% discount when using DROP to pay for trading fees
  • Earn up to 50% for referring users by holding a minimum of 1500 DROP in your account
  • New issuance model to distribute DROP over three years, increase scarcity and reward early adopters
  • Minimum airdrop amount introduced for holders of DROP

Discounted fees for holders of DROP

Starting from February 29th, 2020, you’ll be able to pay trading fees in DROP for a 25% fee discount. Fees will be automatically deducted in DROP should you opt-in for this on your settings page, charged at the 1-day average market price.

Referral bonuses for holders of DROP

Starting from February 29th, 2020, holding more than 1500 DROP in your Cryptophyl account will allow you to earn 50% of the fees paid by referred users, instead of the current 25%. This incentivises holding DROP and rewards dedicated Cryptophyl users for inviting their friends.

Issuance

Our proposed issuance model when we first announced DROP was as follows:

  • 300,000 DROP tokens distributed in an airdrop to early adopters, based on trading volume
  • 600,000 DROP tokens to be distributed on a monthly basis over 12 months, based on trading volume
  • 100,000 DROP tokens retained by the Cryptophyl team for marketing and ecosystem development

Having considered the long-term sustainability of this model, we’ve decided to change how we’ll be issuing DROP. DROP will now be issued over a three-year period, starting from the first distribution of DROP we held, which was 21st Steptember 2019. The same number of tokens will still be airdropped to users.

New issuance model

  • 400,000 DROP tokens distributed in 3 airdrops to early adopters, based on trading volume, from September 2019 until December 2019
  • 500,000 DROP tokens to be distributed monthly until September 2022, using an exponential decay model, starting December 2019
  • 100,000 DROP tokens retained by the Cryptophyl team for marketing and ecosystem development.

The new distribution model of DROP will support long term value growth and allow future users to benefit. Better yet, DROP will use an exponential decay model for issuance, similar to that of Bitcoin, so those who get in early will receive more Drop than those who get in later. The exponential decay will begin after the planned Drop airdrop on 30th December.

The DROP issuance plan and relevant calculations can be viewed here.

Minimum airdrop listing amount for holders of DROP

When we list a new token, we conduct an airdrop of the incoming token, on a voluntary and as-available basis, as a reward for holding DROP. This is a listing requirement to list a token on Cryptophyl, however sometimes it is not possible to meet this target, particularly when the token team has other commitments or price discovery has not yet taken place for the token.

Starting from February 29th, 2020, token airdrops on Cryptophyl will have a minimum value of £10,000 (approx. $13,000 or €12,000).

Rebranding DROP and new official DROP Telegram Channel

We’ve given DROP a new, more refined look. You’ll notice this has been reflected throughout our branding. There’s a dedicated channel for those interested in learning more about DROP and Cryptophyl, available here.


Any questions? Send us a message in our Telegram group or an email to support@cryptophyl.com

We do not provide advice
We provide our services on an execution-only basis. This means we do not provide investment or financial advice for any product. Where we provide factual information, market commentary, transaction procedure guidance or methods of managing risk, you should not construe these as advice. You are solely responsible for any decision to enter into any transaction.