Swipe’s native SXP token fulfills several use cases in Swipe’s payment ecosystem. Holders of the token can enjoy multiple benefits, ranging from paying for transaction fees to staking and getting discounts on the Swipe platform.
What is Swipe Token (SXP)?
While many DeFi tokens are considered to be speculative in nature, SXP primarily serves as a utility token. It powers the entire Swipe ecosystem. By providing utility to token holders, there are multiple incentives to either use or hold SXP.
One core aspect of the Swipe ecosystem is its Visa debit card. It isn’t the first nor the only cryptocurrency debit card in existence. However, unlike similar projects, users don’t need to stake 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 are able to obtain the higher-tier cards. The high-tier cards include benefits, such as subscriptions to Netflix or Spotify, no foreign transaction fees, and discounts through Starbucks, Uber, Apple Music, and Airbnb.
How to store Swipe Token (SXP)
Like most other DeFi projects on the crypto market today, Swipe doesn't have a native blockchain. Instead, the team decided to issue the SXP tokens on both Ethereum and Binance Chain blockchains.
SXP supply and issuance
A portion of the total supply is distributed to SXP users worldwide. In addition, the supply changes regularly, as outlined below:
- 600,000 SXP is allocated for company operations every month.
- 10,000,000 SXP is made available every year for the Swipe team and founders.
- 1,200,000 SXP is made available every month for ecosystem rewards, including staking and other incentives.
Based on those figures, it would appear as if the circulating supply of SXP would be increasing until the max supply is reached. That isn’t the case, as the developers opted to make SXP a deflationary asset. Tokens will be destroyed through coin burns as network usage increases.
To be more specific, 80% of the transaction fees on the Swipe network will be destroyed by the smart contract. The remaining 20% of the fees will remain a part of the ecosystem. According to the team, this amount will eventually be distributed among network validators, as they’ll earn SXP for providing valuable services to the network.
As mentioned, the token burns will continue until a total supply of 100,000,000 SXP is reached. From that point forward, there will be no further reduction in the supply. All fees collected by the network will then be distributed among network validators.
What is SXP used for?
The first use comes in the form of payments. The SXP asset is well-suited to pay at over 60 million locations worldwide. This is possible through merchants who accept cryptocurrency or the Swipe Visa card. In terms of transactions, SXP can be moved on both Ethereum and Binance Chain, which makes it a powerful asset for peer-to-peer transactions.
The second benefit is that holders can get various discounts on fees. Holders of SXP can use their tokens to cover transaction fees on the Swipe network, including transfers made through the Swipe Wallet and Swipe Visa Card.
Another use case comes when using the Swipe Visa debit card. With its four different tiers, there are incentives to hold or acquire SXP. The larger the holding, the higher the card tier.
Holding SXP can introduce extra benefits to cardholders, including shopping discounts and free subscriptions to popular streaming services. Users who stake 30,000 SXP for six months will also be eligible for a cashback of 8% on all purchases and other extra perks.
Users that do staking can also get SXP rewards in exchange for their contribution in securing the network. Last but not least, holders of SXP will be able to participate in network governance, creating proposals, and voting for protocol changes affecting the Swipe network.
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 attempting to make cryptocurrencies more useful and accessible to the everyday person.