What is Swipe Token (SXP)?

Summary
Swipe's native SXP token enables a variety of uses in the Swipe payment ecosystem. Token holders enjoy a number of benefits. In the Swipe platform, they can pay transaction fees, stake, and receive discounts.

IntroductionAs part of the emerging 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 conversion 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). Currently, the Swipe Visa debit card service is available in Europe, and a US debit card is coming soon.
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, some of which are used to reward token holders, while the supply is reduced year by year through token destruction.

What is Swipe Token (SXP)?Many DeFi tokens are considered speculative, but SXP’s primary use is actually as a utility token that powers the entire Swipe ecosystem. Using or holding SXP comes with various incentives that give utility value to token holders.
One of the core features of the Swipe ecosystem is the Visa debit card. While this is not the only or the first cryptocurrency debit card, it is different from similar projects in that users do not need to stake SXP to use the debit card service.
There are several different versions of the Swipe debit card. Holding SXP is not a requirement to open the card, but SXP token holders can get higher-level debit cards. Premium debit cards come with many benefits, such as Netflix or Spotify subscriptions, zero fees for international transactions, and discounts at merchants such as Starbucks, Uber, Apple Music, and Airbnb.
The current amount of SXP assets staked in the native mobile app determines which benefits users can enjoy. Please visit this page to learn more about the different tiers of debit cards.

How to store Swipe Token (SXP)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 tokens (SXP) can be used as both ERC-20 tokens on Ethereum and BEP-2 tokens on Binance Chain. Therefore, SXP tokens can be easily deposited into all cryptocurrency wallets that support ERC-20 or BEP-2 tokens (e.g. Trust Wallet, MetaMask).

SXP Token Supply and DistributionThe Swipe team has decided to set the maximum supply of SXP at 300 million. However, token burns will cause the total supply to gradually decrease, eventually dropping to 100 million.
A portion of the total supply is distributed to SXP users around the world. In addition, the supply changes regularly, as follows:
600,000 SXPs are allocated to company operators every month.
10 million SXPs are allocated to the Swipe team and founders every year.
1.2 million SXP are distributed monthly to the ecosystem as rewards, including staking rewards and other incentives.
Based on the above data, it would seem that the circulating supply of SXP will continue to increase until it reaches a peak. However, this is not the case, and the developers designed SXP to be a deflationary asset. As network usage increases, tokens will be destroyed.
Specifically, 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 who provide important services to the network.
As mentioned earlier, SXP token destruction continues until the total supply drops to 100 million. After this limit is reached, the supply will no longer decrease. After that, all fees collected by the network will be distributed to network validators.

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What are the uses of SXP?First, 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. The applicable conditions are that the merchant accepts cryptocurrency or Swipe Visa card payment. In terms of transactions, SXP can be transferred between Ethereum and Binance Chain because it is an effective peer-to-peer transaction asset.
Second, token holders receive various fee discounts. SXP holders can use tokens to pay transaction fees on the Swipe network, including transfers through the Swipe wallet and the Swipe Visa card.
Once again, you can use the Swipe Visa debit card. This debit card is divided into four different levels, with different incentives for holding or purchasing SXP. The more SXP tokens you hold, the higher the level of the debit card.
Cardholders holding SXP will enjoy more benefits, including shopping discounts and free subscriptions to popular streaming services. If users pledge 30,000 SXP within six months, they will also receive an 8% cashback on all consumption and other additional subsidies.
In view of their contribution to network security, staking users will also receive SXP rewards. Finally, it must be mentioned that SXP holders are able to participate in Swipe network governance, create proposals and vote on protocol changes.

SummarizeThe Swipe ecosystem includes a wide range of products and services, all of which can use SXP tokens in one form or another. As the Swipe Visa debit card continues to gain popularity, it will become easier and more convenient for everyone to use cryptocurrency.
Considering the deflationary model of Swipe Token and many other factors, it is recommended to read the white paper in detail and pay close attention to the development trend of the project.