Carefully! Lots of text.
Swipe's native SXP token has multiple use cases within the Swipe payment ecosystem. Token holders can enjoy a variety of benefits, from paying transaction fees to placing bets and receiving discounts on the Swipe platform.
Introduction
Swipe provides its users with a wide range of products and services within the growing ecosystem of decentralized finance (DeFi). Swipe's Visa debit card and multi-asset DeFi app allow you to instantly exchange cryptocurrencies, fiat 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 Swipe cards will soon be available in the US.
All Swipe products are embedded with their native SXP token, which serves as a decentralized digital currency. This native digital currency can be used in a variety of ways within the Swipe ecosystem. For example, it can be awarded to token holders. However, over time, its supply will also decrease due to the burning of coins.
What is Swipe Token (SXP)?
Many DeFi tokens are considered speculative, but SXP is primarily a utility token. It supports the entire Swipe ecosystem. The benefits for SXP token holders are provided by its use and storage.
One of the main components of the Swipe ecosystem is the Visa debit card. This is not the first or only cryptocurrency debit card. However, unlike similar projects, participation in SXP staking is not required to use it.
There are several versions of the Swipe debit card. Although holding SXP is not a requirement, SXP token holders can receive higher level cards. High-tier cards come with benefits like Netflix and Spotify subscriptions, no international transaction fees, and discounts at Starbucks, Uber, Apple Music, and Airbnb.
The benefits available will depend on your current SXP assets used for staking on the mobile app. Find out more about debit card tiers on this page.
How to Store Swipe Token (SXP)
Like most other DeFi projects on the cryptocurrency market, Swipe does not have its own blockchain. Instead, the team issued SXP tokens on the Ethereum and Binance Chain blockchains.
The Swipe token (SXP) is available as both an ERC-20 token (on Ethereum) and a BEP-2 token (on the Binance blockchain). Thus, you can store SXP in any cryptocurrency wallet that supports ERC-20 or BEP-2 tokens (for example, Trust Wallet or MetaMask).
Offering and release of SXP
The Swipe team has decided to limit the maximum supply of SXP to 300 million tokens. However, coin burning will gradually reduce the total supply until there are 100 million tokens left.
A portion of the total supply is distributed to SXP users around the world. In addition, the offer changes regularly as shown below:
600,000 SXP are allocated monthly for the company's activities.
10,000,000 SXP is allocated annually to the Swipe team and founders.
1,200,000 SXP is allocated monthly for ecosystem rewards, including staking and other rewards.
Looking at these numbers, it can be assumed that the circulating supply of SXP will increase until the maximum volume is reached. This is not the case as the developers decided to make SXP a deflationary asset. As network usage increases, tokens will be destroyed through coin burning.
More specifically, 80% of transaction fees on the Swipe network will be wiped out by the smart contract. 20% commissions will remain part of the ecosystem. According to the team, this amount will eventually be distributed among validators on the network as they earn SXP for performing important functions on the network.
As we have already said, the token burn will continue until the total supply reaches 100,000,000 SXP. From this point on there will be no further reduction in supply. All commissions collected on the network will be distributed among validators.
➟ Thinking about where to start working with cryptocurrencies? Buy Bitcoin (BTC) on Binance!
What is SXP used for?
Firstly, SXP is used for payments. SXP can be used to pay at more than 60 million locations around the world. It can be used in places that accept cryptocurrency or the Visa Swipe card. In terms of transactions, SXP can be transferred to both Ethereum and Binance Chain. This makes it a powerful asset for peer-to-peer transactions.
The second benefit is that SXP owners can receive discounts on fees. Tokens can be used to pay transaction fees on the Swipe network, including transfers through the Swipe wallet and Swipe Visa card.
Another use case is the Swipe Visa debit card. There are four card levels that provide incentives for holding and purchasing SXP. The more you “hold”, the higher the level of the card.
Holding SXP provides cardholders with additional benefits, including discounts on purchases and free subscriptions to popular streaming services. Users who maintain a staking balance of more than 30,000 SXP within six months will be eligible for 8% cashback on all purchases, as well as other special bonuses.
Users who participate in staking can receive rewards in SXP in exchange for maintaining the security of the network. Last but not least, SXP owners will be able to participate in network governance, propose improvements, and vote on protocol changes that affect the operation of the Swipe network.
Summary
The Swipe ecosystem includes many different products and services. All of them use the SXP token in one way or another. Swipe is an attempt to make cryptocurrency more useful and accessible to the average person through a Visa debit card.
Given the deflationary model of the token, there are many reasons to carefully study the Whitepaper of this project and follow its development.