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YouTube Video over this topic found here: A Guide To Pedestals - EP10: Dropper Upgrade

Crafting recipe

Crafted from any pedestal upgrade + dropper

Usage

Acts like vanilla dropper except it drops the item from the top side of the pedestal, although you can arrange the way the item drops by placing the pedestal in different angle :

Example

You can utilize the dropper to automate all sort kind of thing with an example inserting coal into a pedestal with smelting upgrade automatically, here's a gif showing how it can be done