🤔 What is Amp token ?
Cryptocurrencies are not used as means of payment for day-to-day purchases because it takes a lot of time for the transaction to get confirmed.
Users will not want to wait in line for that much time till their transaction is confirmed.
Amp token act as collateral till the time the actual crypto transaction is confirmed. Merchants are compensated by Amp token in case the crypto transaction fails.
Hence users and merchants do not have to wait for long confirmation time until the transaction is finalized.
Once the transaction successfully settles, the Amp collateral is released and made available to collateralize another transfer.
📝 Origin of Amp token
Flexa was founded in 2018 by Trevor Filter, Zachary Kilgore, and Tyler Spalding. In early 2018 Flexa had its first funding round in the form of an ICO of the Flexacoin.
Less than a month after the last funding round, which was in April of 2019, Flexa released the SPEDN app which made it possible for U.S. residents to pay with cryptocurrencies Bitcoin, Ethereum, and Gemini’s GUSD stablecoin at over 30,000 locations.
In July 2020, Coinbase announced its plans to list Flexacoin which hours later was followed by a Flexa announcement of a new token, Amp token.
The reason for this was that apparently the technology behind Flexacoin couldn’t support staking without sending it to a smart contract.
Flexacoin holders were then able to swap their coins to Amp in a 1:1 ratio.
😌 What problems does it solve ?
When transferring digital assets, there is a natural push and pull between speed and security. With cryptocurrency transfers, the more confirmations the recipient waits for, the more permanent the transaction becomes.
However, waiting for several confirmations may not be practical in many real-life situations, such as payments, when speed is of the essence. This inherent tradeoff between speed and security has made it challenging to use cryptocurrencies in the real world.
By serving as collateral for asset transfers, Amp provides speed without compromising on security.
In essence, Amp becomes a universal clearing layer for transfers and unlocks assets that would otherwise require waiting for confirmations before being put to use.
This new ability to use any asset immediately upon transfer is a feature any asset can benefit from whether digital. physical or cryptocurrency.
🏛️ Governance model
Amp governance uses off-chain voting via Snapshot.
Amp users have the opportunity to vote on proposals presented by the community. However, with off-chain governance, votes serve as non-binding signaling rather than binding resolutions.
🤑 How much money does the project have for future development ?
- The project raised:
- $6.00M in private sale in Sep 2020.
- $14.10M in private sale in Dec 2018.
- The team has access to 80% of total Amp tokens that can be used to fund future development.
Amp token supply is capped at 100 billion, and allocated as follows:
- 25% Merchant Development Fund.
- 25% Developer Grants.
- 20% Flexa Founding Team and Employee Pool. The team funds are allocated to current and future employees.
- 20% Token Sales.
- 10% Network Development Fund.
These tokens will be released as follows:
Amp token solves a real problem that imits growth of crypto payments in daily life.
Moreover, value of Amp token is directly tied to its adoption:
- Amp tokens have fix max supply.
- Value of Amp token will grow as more users will acquire Amp token to stake as collateral for conducting payments.
- In the long run, market cap of Amp token will reflect the value of collateral required to facilitate payments using crypto.
Blockchain is a new technology, still under upgrade. It is possible that developers are successful in finding a solution for making blockchains fast, making Amp token useless.
Moreover, Amp token disrupts current system of payment infrastructure. Entrenched players will certainly not go down without a fight.