What is Swipe Token (SXP)?

Swipe’s native SXP token has several use cases in the Swipe payment ecosystem. Token holders can enjoy many benefits, from paying transaction fees to placing bets and receiving discounts on the Swipe platform.

Introduction

As part of the growing decentralized finance (DeFi) ecosystem, Swipe provides its users with a wide range of products and services. The Visa Swipe debit card and the multi-asset DeFi app allow you to instantly transfer funds between cryptocurrencies, fiat currencies and stable coins.

As of December 2020, the app supports four stable coins (USDT, USDC, BUSD and DAI) and two fiat currencies (USD and EUR). Visa Swipe debit cards are currently available in Europe and will soon be available in the US.

All Swipe products support the native SXP token, which serves as a decentralized digital currency. This native digital currency has many uses in the Swipe ecosystem. Among other things, SXP awards reward to token holders, with the total amount of SXP decreasing over time due to coin burning.

What is Swipe Token (SXP)?

While many DeFi tokens are considered speculative, the SXP coin is primarily a utility token. It supports the entire Swipe ecosystem. Benefits to 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, users do not need to stake the SXP in order to use it.

There are several versions of the Swipe debit card. Although SXP storage is optional, SXP token holders can receive higher tier cards. High-end cards offer benefits such as Netflix and Spotify subscriptions, no international transaction fees, and discounts at Starbucks, Uber, Apple Music and Airbnb.

The benefits available to you depend on the SXP balance used for staking in the mobile app. If you would like more information on debit card tiers, visit.

How to store the Swipe token (SXP)

Like most other DeFi projects in 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 on both the ERC-20 network (on Ethereum) and the BEP-2 network (on the Binance Chain ). This way you can easily store SXP on any cryptocurrency wallet that supports ERC-20 or BEP-2 tokens (e.g. Trust Wallet , MetaMask ).

SXP proposal and release

The Swipe team decided to cap the maximum SXP supply of 300 million tokens. The total supply will gradually decrease through the burning of coins until there are 100 million tokens left.

A portion of the total offering is distributed to SXP users around the world. In addition, the offer changes regularly, as shown below:

• 600,000 SXP are allocated monthly for company operations.
• 10,000,000 SXP are awarded annually to the Swipe team and founders.
• 1,200,000 SXP are earmarked monthly for ecosystem rewards, including staking and other rewards.

Based on these numbers, it would appear that SXP’s circulating supply will increase until the maximum volume is reached. This is not the case as the developers decided to make the SXP a deflationary asset. As network usage increases, tokens will be destroyed by burning coins.

More specifically, 80% of the transaction fees on the Swipe network will be destroyed by the smart contract. The remaining 20% ​​of commissions will remain part of the ecosystem. According to the team, this amount will ultimately be distributed among the network validators, as they earn SXP for performing important functions on the network.

As mentioned, 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 the supply. All commissions collected on the network will be distributed among the validators.

What is SXP used for?

First, SXP is used for payments. The SXP asset can be used to pay at more than 60 million points around the world. It can be used at points where cryptocurrency or Visa Swipe cards are accepted. In terms of transactions, SXP can be transferable to both Ethereum and Binance Chain, making it a powerful peer-to-peer transaction asset.

The second benefit is that SXP holders can receive discounts on commissions. Tokens can be used to pay transaction fees on the Swipe network, including transfers through the Swipe wallet and Visa Swipe card.

Another use case is the Swipe Visa debit card. There are four card levels in total, which encourage the storage and purchase of SXP. The more you hold, the higher the level of the card.

SXP storage provides cardholders with additional benefits, including discounts on purchases and free subscriptions to popular streaming services. Users with more than 30,000 SXP staking balances within six months will be eligible for 8% cashback on all purchases and other special bonuses.

Staking users can receive SXP rewards in exchange for keeping the network secure. Last but not least, SXP owners will be able to participate in network governance, propose improvements, and vote on protocol changes that affect the Swipe network.

Conclusion

The Swipe ecosystem includes many different products and services, all of which use the SXP token in one way or another. Swipe offers to make cryptocurrency more useful and accessible to the average person thanks to the Visa debit card.

Given the deflationary model of the token, there are several reasons to carefully study the whitepaper and follow how this project develops.