Summary
Swipe's native SXP token enables various uses in the Swipe payments ecosystem. Token holders enjoy many benefits. Within the Swipe platform, they can pay trading fees, stake and receive discounts.
As part of the rising decentralized finance (DeFi) ecosystem, Swipe provides users with a variety of products and services. The Swipe Visa Debit Card and multi-asset DeFi App enable real-time exchanges between cryptocurrencies, fiat currencies and stablecoins.
As of December 2020, the App supports four stablecoins (USDT, USDC, BUSD and DAI) and two fiat currencies (USD vs. EUR). Currently, the Swipe Visa debit card service is available in Europe, and a US debit card will soon be available.
The native SXP token is a decentralized digital currency optimized for the functionality of all Swipe products. This native digital currency has a wide range of uses in the Swipe ecosystem, with some used to reward token holders while reducing the supply year by year through token burning.
People believe that many DeFi tokens have speculative properties, but the main purpose of SXP is actually a utility token, which provides a solid foundation for the entire Swipe ecosystem. System empowerment. Using or holding SXP comes with various incentives that give token holders practical value.
One of the core features of the Swipe ecosystem is the Visa debit card. While this is not a unique or unprecedented cryptocurrency debit card, unlike similar projects, users do not need to stake SXP to enjoy the debit card service.
Swipe debit cards come in several different versions. Holding SXP is not a requirement to open a card, but SXP token holders can obtain higher-level debit cards. Premium debit cards come with many benefits, such as a Netflix or Spotify subscription, zero fees for cross-border transactions, and discounts at merchants such as Starbucks, Uber, Apple Music, and Airbnb.
The current pledge amount of SXP assets in the native mobile app determines what rights users can enjoy. Visit this page to learn more about the different levels of debit cards.
Like most DeFi projects in the current cryptocurrency market, Swipe does not have a native blockchain. Therefore, the team decided to issue SXP tokens on the Ethereum and Binance Chain blockchains.
Swipe token (SXP) can be used as an ERC-20 token on Ethereum or as an ERC-20 token on Binance Chain. of BEP-2 tokens used. Therefore, SXP tokens can be easily deposited into all cryptocurrency wallets that support ERC-20 or BEP-2 tokens (e.g. Trust Wallet, MetaMask).
Swipe team decided to set the maximum supply of SXP to 300 million. However, token burning will cause the total supply to gradually decrease, eventually dropping to 100 million coins.
A portion of the total supply is distributed to SXP users worldwide. In addition, the supply changes regularly, as follows:
600,000 are allocated to company operators every month SXP.
10 million SXP will be allocated to the Swipe team and founders every year.
1.2 million SXP will be allocated to the ecosystem every month as rewards, including staking rewards and other incentives.
Based on the above data, it seems that the circulating supply of SXP will continue to increase until it reaches a peak . But this is not the case, the developers designed SXP to be a deflationary asset. As network usage increases, tokens are burned.
To be precise, the smart contract will destroy 80% of the transaction fees of the Swipe network, and the remaining 20% will remain in the ecosystem. According to the team, this amount will eventually be distributed in the form of SXP to network validators that provide important services to the network.
As mentioned previously, SXP token burning continues until the total supply drops to 100 million. Once this limit is reached, the supply will no longer decrease. Afterwards, all fees collected by the network will be distributed to network validators.
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First of all, it can be used as a payment method. SXP token assets can be used for payment at more than 60 million outlets around the world. Conditions apply if the merchant accepts cryptocurrency or Swipe Visa card payments. In terms of trading, SXP is transferable on Ethereum and Binance Chain as it is an efficient peer-to-peer trading asset.
Second, token holders enjoy various fee discounts. SXP holders can use the token to pay transaction fees on the Swipe network, including transfers through the Swipe wallet and Swipe Visa card.
Again, the Swipe Visa debit card can be used. This debit card is divided into four different levels, with different incentives corresponding to holding or purchasing SXP. The more SXP tokens you hold, the higher the level of your debit card.
Cardholders who hold SXP will enjoy more benefits, including shopping discounts and free subscriptions to popular streaming services. If users stake 30,000 SXP within six months, they will also receive an 8% cashback discount on all purchases and other additional subsidies.
Due to their contribution to network security, staking users will also receive SXP rewards. Finally, it must be mentioned that SXP holders can participate in Swipe network governance, create proposals and vote on protocol changes.
Swipe ecosystem covers various products and services, all of which can use SXP tokens in different forms. As the Swipe Visa debit card continues to gain popularity, it will become easier and more convenient for everyone to use cryptocurrencies.
Considering the deflation model of Swipe tokens and many other factors, it is recommended to read the white paper in detail and pay close attention to the development of the project trend.