AMP (ETH: $AMP), the native token of the Flexa platform, is an Ethereum project that aims to make crypto payments for ordinary goods a reality.
While crypto payments are promising, uptake by merchants has lagged due to speed and scalability issues. One solution is using payment cards to hold crypto and pay merchants in fiat. However, this means that all the problems of electronic payment cards are transferred into crypto payments. For instance, merchants are exposed to chargeback risk and other issues. $AMP token is designed to resolve these issues with collateralized crypto payments.
How Collateralized Crypto Payments Work
$AMP is issued by the Flexa payments platform, which aims to facilitate direct crypto payments. The $AMP tokens are used to collateralize transactions on the Flexa platform. One reason $AMP is needed is card fraud, a major problem online merchants battle.
Another area for improvement is that when converting crypto to fiat, there is usually some lag time. Consequently, without collateral, the merchant is taking all the risk of the transaction failing. $AMP tokens act as collateral during a transaction. For instance, if the transaction is for $10, a $12 amount of $AMP tokens or any other amount greater than $10 would be held in a smart contract as collateral.
If the transaction fails, the $AMP will automatically be converted to fiat and sent to the merchant. The tokens come from those staking $AMP in any payment services utilizing the Flexa payment network. Currently, these are through the Apple / Android app, SPEDN, and 9 other apps that are coming soon.
However, $AMP is not restricted to collateralizing Flexa transactions. It can be used by any DeFi project for this purpose. The feature is known as collateral as a service. It makes creating apps that can lock and unlock AMP tokens on demand to secure transfers, facilitate lending, and make value transfer easier.
Staking $AMP Tokens
$AMP tokens can be staked on Flexa Capacity. As of July 26, there are 23,942,052,492 AMP tokens currently staked on the platform, valued at around $65.3 million. At one point, the staked tokens had a valuation of over $1.3 billion around February of 2023. Staking rewards are high, at around 6-7%, on average and there is no lockup period.
$AMP Tokenomics
The $AMP tokens have a market cap of around $152 million. There is a total supply of 99.44B AMP and a circulating supply of 56.12B AMP. Despite the huge market volatility in the price of the tokens, they have remained wildly popular on social media. For instance, the project’s Twitter account has over 53.4K followers.
[Click The $AMP Chart Above To Trade On DexTools]
Potential for Limitless Utility
$AMP tokens are designed to unlock and facilitate new use cases in the DeFi and online payment sectors. They aim to make decentralized crypto transactions as simple and efficient as existing electronic payment options. Consequently, the only limit to $AMP’s potential utility is the number of transactions taking place globally in every sector of the economy.
The utility of the $AMP tokens is important to its developers since the tokens are built to be low-volatility, with the value appreciation connected directly to their utility. $AMP tokens found their initial utility in the Flexa network, where they secure payments.
Flexa charges a small fee during each transaction, which is used to purchase $AMP tokens autonomously distributed to collateral smart contracts. Network participants receive the $AMP tokens based on their staked amount. As a result, all the value of the Flexa Network is captured within the $AMP tokens.
Summary
Crypto payments will no doubt be an important part of the payment infrastructure of the future. Flexa, combined with $AMP tokens, is making this a reality. By holding onto $AMP tokens, you are holding onto a stake in the future of payment networks.
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