TL;DR

Swipe's native token, SXP has several use cases in the Swipe payments ecosystem. Token holders can enjoy many benefits, from paying transaction fees to staking and getting discounts on the Swipe platform.


Introduction

As part of the growing Decentralized Finance (DeFi) ecosystem, Swipe provides a wide range of products and services to its users. The Swipe Visa debit card and multi-asset DeFi App allow you to instantly convert a variety of crypto assets, 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 a US debit card is coming soon.

All Swipe products use a native token, SXP, which functions as a decentralized digital currency. This native digital currency has many uses in the Swipe ecosystem. Some of this is related to providing rewards, while also using the mechanism of reducing supply over time through coin burning.


What is Swipe Token (SXP)?

While many DeFi tokens are considered speculative tokens, SXP primarily functions as a utility token. Empowering the entire Swipe ecosystem. By providing utility to token owners, there are many incentives you receive by using or holding SXP.

One of the core aspects of the Swipe ecosystem is its Visa debit card. This is not the first or only crypto debit card in existence. However, unlike other similar projects, users do not need to stake SXP to be able to use this debit card service.

There are several versions of the Swipe debit card. While holding SXP is not a requirement, SXP token holders can earn cards at higher rates. High-tier cards have several benefits, such as Netflix or Spotify subscriptions, no foreign transaction fees, and discounts at Starbucks, Uber, Apple Music, and Airbnb.

Which benefits can be accessed depends on your current SXP holdings staked in the mobile app. If you would like more information about the different tiers of these debit cards, check out this page.


How to store Swipe Tokens (SXP)

Like most other DeFi projects in the crypto market today, Swipe does not have a native blockchain. Currently, his team decided to issue SXP tokens on the Ethereum blockchain and Binance Chain.

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


SXP supply and issuance

The Swipe team decided to cap the maximum supply of SXP at 300 million tokens. However, gradual coin burning will reduce the total supply until only 100 million tokens remain.

A portion of the total supply is distributed to SXP users worldwide. Additionally, supply changes regularly, as outlined below:

  • 600,000 SXP is allocated to the company's operations every month.

  • 10,000,000 SXP unlocked every year for the Swipe team and founders.

  • 1,200,000 SXP unlocked every month for ecosystem rewards, including staking and other incentives.

Based on these numbers, it appears that the circulating supply of SXP will continue to grow until the maximum supply is reached. It turns out that's not the case. The development team chose to make SXP a deflationary asset. Tokens will be destroyed via coin burning if network usage increases.

To be more specific, 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 team, this amount will ultimately be distributed among the network's validators, they will earn SXP for providing valuable services on the network.

As mentioned, token burning will continue until the total supply becomes 100,000,000 SXP. From then on, there will be no further reduction in supply. All fees collected by the network will then be distributed among the network validators.


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What are the benefits of SXP?

The first use is in the form of payment. SXP assets are great for payments in more than 60 million locations worldwide. This is possible through merchants that accept cryptocurrency or Visa Swipe cards. In terms of transactions, SXP can be moved via Ethereum and Binance Chain, which makes it a powerful asset for peer-to-peer transactions.

Second benefit: token owners can get various fee discounts. Tokens can be used to cover transaction fees on the Swipe network, including transfers made via Swipe Wallet and Swipe Visa Card.

Another use case arises when using the Visa Swipe debit card. With four different tiers, there are incentives to save or own SXP. The greater the holding, the higher the card level.

Saving SXP can provide additional benefits for cardholders, including shopping discounts and free subscriptions to popular streaming services. Users who stake 30,000 SXP for six months are also entitled to 8% cashback on all purchases, and various other extra facilities.

Users who stake can also earn SXP rewards as a reward for their contribution to securing the network. Lastly, SXP owners will be able to participate in network governance, make proposals, and vote on protocol changes that impact the Swipe network.


Conclusion

The Swipe ecosystem includes a variety of products and services, all of which use SXP tokens in various ways. With its Visa debit card, Swipe is trying to make crypto more useful and more accessible to ordinary people.

Combined with the deflationary model of this token, there are several reasons you might be interested in reading the whitepaper, while keeping an eye on the development of this project.