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- 1 AMP works through Flexa, which provides a framework that facilitates payments.
- 2 AMP Holders can stake their tokens through the Flexa Capacity network.
Cryptocurrency networks face a blockchain trilemma – balancing security, scalability, and decentralization. That can lead to longer transaction times, hindering scalability for payments.
A beginner’s guide to AMP token
Amp is a platform built on Ethereum that uses the AMP token as collateral to speed up transaction time while waiting for network confirmations.
It operates through Flexa, a partner payment network that enables merchants to accept cryptocurrency payments through standard point-of-sale and online systems. By collateralizing payments through AMP, merchants can verify the funds supporting the transactions, even when the blockchain has not yet reached transaction finality.
The AMP token is not only collateral but also serves as the main form of reward for users who stake their AMP as collateral to the network. It also serves a role in governance in the Amp community, helping to guide the project’s development.
The development of the Amp token is a collaboration between the Flexa payment network and ConsenSys, a blockchain development enterprise known for its work on the MetaMask crypto wallet.
Flexi is a New York City-based company co-founded by Tyler Spalding, Trevor Filter, Zachary Kilgore, and Daniel McCabe in 2018. Spalding, Filter, and Kilgore were previously employed at Raise, a FinTech firm providing digital prepaid and retail services. McCabe is Flexa’s general counsel and Chief Compliance Officer.
Flexa provides a framework for payments between customers and merchants, powered by its software development kit (SDK). SPEDN is one such app powered by the SDK that can be used for payments.
For each transaction, Flexa generates a unique barcode (flexcode) scanned by retailers to enable direct payments to merchants. It can be done even in fiat currency while adjusting the crypto balance in the customer’s digital wallet. This process occurs independently of blockchain confirmations, regardless of whether the user’s digital assets are on Bitcoin, Ethereum, or another chain. In the unlikely event that the transaction is not validated, the AMP token collateralizing this service can be liquidated to ensure payment.
AMP Token and its Distributions
The ERC-20-based Amp token (AMP) is primarily used as a collateralization asset on the Ethereum blockchain. Its primary objective is to streamline payment settlement, particularly for Flexa.
When users stake their tokens as collateral, they are incentivized with AMP. Additionally, the token can also be leveraged for the governance of the Amp token community.
Regarding the token distribution, the maximum supply of AMP tokens is 100 billion. During the launch, the total supply of FXC tokens (later rebranded as AMP) was allocated as, 25% to a merchant development fund, 25% to developer grants, 20% to the founding team and employees, 10% to a network development fund, and 20% to be sold in token sales. The first tranche of team/employee tokens was subjected to a four-year vesting schedule when initially released and vested in 2019.
Summary
Amp is a platform that uses AMP tokens as collateral to speed up transactions on Ethereum. It operates through Flexa, enabling merchants to accept crypto payments. AMP token is primarily used to streamline payment settlement, particularly for Flexa. The maximum supply of AMP tokens is 100 billion.
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