Digital payment rails have existed in retail and institutions for decades. However, the evolution of these rails has developed much slower than the cutting-edge technology that uses them. Although the world continues to witness the mass adoption of cryptocurrencies and digital assets, users experience limitations on how to spend their preferred forms of payment.
Currently, most methods of engaging in cryptocurrency transactions are not very transparent and involve exchanging digital assets for fiat through centralized exchanges, which can cause a logistical challenge. Flexa is a digital payments network that allows merchants seamless options to facilitate cryptocurrency payments from various mobile applications and digital wallets. Flexa achieves this by using a hybrid approach utilizing a centralized framework and a decentralized network, the Flexa network.
Introducing the Flexa Network.
The Flexa network is a digital payments network that supports over 99 cryptocurrencies across 12 blockchain networks, supporting over 41,000 locations. The payments network was developed to remove costly intermediaries and enable the universal acceptance of various digital assets by integrating with existing payments infrastructure at the point-of-sale (POS). In real-time, Flexa’s payment solutions facilitate instant, economical, and fraud-proof settlements in-store, online, or through mobile applications.
Flexa utilizes existing centralized payment infrastructure like merchant POS systems and online and mobile applications to facilitate transactions. However, Flexa’s hybrid approach incorporates decentralized networks as a settlement layer to authenticate and validate transactions on-chain. Being on-chain eliminates the need for financial intermediaries and reduces transaction costs related to fraud while preserving transaction security and privacy.
The decentralized network is composed of permissionless collateral pools. Global participants can provide liquidity to these pools through staking, which is used to collateralize transactions made on the network. Flexa’s collateral token, Amp, is an ERC-20-compatible token used as a distinct type of collateral for staking in these collateral pools. This token decentralizes transaction risk on the Flexa network.
When transactions are initiated at the POS and users scan the Flexacode, the Amp from the collateral pool is locked against the fiat value of the purchase. Flexa uses a decentralized price oracle, Chainlink, to capture the locked conversion price of the chosen cryptocurrency and Amp token.
Because the time necessary to reach a final settlement can vary depending on the underlying asset, Amp is locked as collateral in Flexa Capacity smart contracts. The collateral is released once the transaction reaches economic finality on-chain and becomes available to use as collateral. This decentralized approach reduces transaction risk and merchant fees and eliminates fraudulent activity.
Amp Token Supply
Amp has a maximum fixed supply of 100 billion tokens and is the replacement of Flexacoin, which was fully migrated for a 1:1 exchange to support the additional features built within the Amp token, such as token partitions. The entire token supply is allocated to be used through 2045 and doesn’t possess any native burn functions.
- The Merchant Development fund received 25% of the fixed supply to support merchant integrations. These tokens were reserved in efforts to facilitate merchant acceptance of Flexa-enabled applications, including hardware and software deployment.
- Developer Grants received 25% of the fixed supply to help increase the adoption of Amp for payment collateralization. Starting in January 2020, 1 billion AMP will be allocated each year to developers interested in enabling Amp collateralized payments on their applications. These tokens will be stake-locked for 12 months upon granting, after which they will be unlocked for general circulation by recipients.
- The Founding Team and Employee pool were allocated 20% of the fixed supply to incentivize current and future Flexa team members. This allocation will be distributed over a four-year vesting schedule with a one-year cliff to ensure ongoing involvement with the project.
- A total of 20% of the fixed supply is allocated to Token Sales, including all tokens that have been externally distributed.
The remaining 10% of the fixed supply was allocated to the Network Development fund. The fund will be used to support the development of the Flexa network over the first decade of its operation, which will be disbursed at a rate of 1 billion tokens per year.
The Flexa team has been making strides and driving the needle in crypto payment solutions since 2018. The Flexa network supports over 99 cryptocurrencies across 12 blockchains and has plans to onboard more assets and blockchain networks in the future. Flexa has a live product working with their established point-of-sale and merchant partnerships, enabling seamless integrations for crypto payment settlements.
Flexa’s value proposition is in its hybrid approach, and it incorporates a centralized framework and decentralized network, differentiating Flexa from other crypto payments competitors. The Flexa network not only facilitates secure crypto payments but also allows rewarding participants to secure the network. New and existing crypto market participants will look for safe and secure real-world applications like Flexa to spend their cryptocurrencies as the adoption grows.
Source: https://messari.io/article/flexa-you-can-have-your-crypto-and-spend-it-too
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