In brief

SXP is Swipe's native token, it serves multiple use cases in Swipe's payment ecosystem. Holders of this token can enjoy many benefits, from paying transaction fees to staking and receiving discounts on the Swipe platform.


Introduce

As part of the growing Decentralized Finance (DeFi) ecosystem, Swipe offers a wide range of new products and services to users. Swipe's Visa Debit Card and Multi-Asset DeFi App allows you to instantly convert 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 and EUR). Swipe's Visa debit card service is currently available in Europe and is launching soon in the US market.

All Swipe products use SXP tokens. This token serves as a decentralized digital currency. SXP serves multiple uses within the Swipe ecosystem. Some of them involve rewarding token holders, while its supply will decrease over time through cryptocurrency burning .


What is Swipe Token (SXP)?

While many DeFi tokens created are speculative in nature, SXP offers clear utility. It powers the entire Swipe ecosystem. By providing utility to token holders, traders have more incentive to use or store SXP.

A core product of the Swipe ecosystem is the Visa debit card. It is not the first and only cryptocurrency debit card in existence. However, unlike similar projects, users do not need to deposit SXP to be able to use the debit card service.

There are a few different versions of the Swipe debit card. While holding SXP is not a requirement, SXP token holders can receive higher tier tokens. The premium card includes benefits like free Netflix or Spotify subscriptions, free foreign transactions, and discounts on Starbucks, Uber, Apple Music, and Airbnb.

The benefits you are allowed to access will depend on the number of SXP tokens you hold in the native mobile application. If you want more information about the different debit card tiers, check out this page .


How to store Swipe Token (SXP)

Like most other DeFi projects on the market, Swipe does not have a native blockchain. Instead, the development team decided to issue SXP tokens on both the Ethereum and Binance Chain blockchains.

Swipe (SXP) is available as an ERC-20 token (on Ethereum) and a BEP-2 token (on Binance Chain). Therefore, you can easily store SXP in any crypto wallet that supports ERC-20 or BEP-2 tokens (e.g., Trust Wallet, MetaMask).


Supply and quantity of SXP released

The Swipe team decided to limit the maximum supply of SXP to 300 million tokens. However, token burning will gradually reduce the total supply of SXP until only 100 million tokens remain.

A portion of the total supply is distributed to SXP users worldwide. In addition, supply also changes frequently, specifically as follows:

  • 600,000 SXP are allocated for company operations each month.

  • 10,000,000 SXP provided annually to Swipe team and founders.

  • 1,200,000 SXP are provided monthly as ecosystem rewards, including staking rewards and other incentives.

Based on this information, it appears that the circulating supply of SXP will increase until the maximum supply is reached. However, the developers have determined SXP will be a deflationary asset. Tokens will be destroyed through coin burn as network usage increases.

Specifically, 80% of transaction fees on the Swipe network will be destroyed by smart contracts. The remaining 20% ​​of fees will remain part of the ecosystem. According to the development team, this amount will eventually be distributed to network validators, who will earn SXP for providing valuable services to the network.

As mentioned, the token burn will continue until the total supply of 100,000,000 SXP is reached. From that point on, the supply will not decrease anymore. All fees collected by the network are then distributed to the network validators.


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What can SXP be used for?

First, SXP can be used for payment. SXP assets can be used for payments at over 60 million locations worldwide. This can be done through merchants that accept cryptocurrency or Swipe Visa cards. In terms of trading, SXP is portable on both Ethereum and Binance Chain, which makes it a strong asset suitable for peer-to-peer transactions.

The second benefit is that owners can receive high transaction fee discounts. SXP holders can use this token to pay transaction fees on the Swipe network, including transfers via Swipe Wallet and Swipe Visa Card.

Another use case is on the Swipe Visa debit card. Holding or acquiring SXP is divided into 4 different levels. The larger the number of tokens you hold, the higher the card's rank.

Benefits of upgrading your card include shopping discounts and free subscriptions to popular streaming and entertainment services. Users who stake 30,000 SXP for six months will be eligible for 8% cashback on all purchases and other additional perks.

Staking users can receive SXP rewards in exchange for their contribution to securing the network. Last but not least, SXP holders will be able to participate in network governance, create proposals, and vote on protocol changes affecting the Swipe network.


summary

The Swipe ecosystem includes many different products and services, all of which use the SXP token in one way or another. With its Visa debit card, Swipe is trying to make cryptocurrency more useful and accessible to everyone.

Combined with the deflationary model, learning more about the white paper and following the development of this project could give you a good investment opportunity.

Still have questions about Swipe's SXP and other crypto assets? Follow our Q&A platform, Ask Academy. The Binance community will answer you.