A Comprehensive Understanding of the Economic Models and Application Scenarios of 5 Wallet Tokens such as TPT and MATH
The tokens of cryptocurrency wallets continue to rise. What is the economic model behind this, and how do the tokens capture value?This article is an original piece by Chain Catcher, authored by Loners Liu.
As the infrastructure of the cryptocurrency world and the traffic entry point for numerous DApps, wallets provide users with convenient asset management tools. The activity level of users on wallets is closely related to market trends. However, the business models and governance of digital wallets are still in the early exploration stage. Currently, many wallets have chosen to issue their own native tokens, and several wallet tokens have seen significant price increases recently. Chain Catcher has compiled statistics on five wallet applications with a circulating market value of over 100 million USD, analyzing the economic models and uses of these five wallet platform tokens. Below are the current prices, circulation, and market values of these tokens, which should not be considered as any investment advice.
Introduction to SafePal
SafePal is a digital currency wallet designed to provide a secure and user-friendly platform for managing crypto assets. SafePal supports 20 blockchains, including Binance Chain and Binance Smart Chain (BSC), and over 10,000 tokens and NFT assets. SafePal offers hardware and software wallet products managed by the SafePal App, allowing users to easily store, manage, and trade their crypto assets.
The Swipe wallet executes all wallet functions and utilities through the Swipe token (SXP), including using services and canceling orders. Users can buy, sell, and pay with cryptocurrencies directly within the wallet app, purchase gift cards, and instantly swap between all supported assets. Users can utilize their SXP tokens at launch, and there are tiered discounts based on holding the wallet contract's SXP.
SFP Token Distribution
According to SafePal's whitepaper regarding SFP, SFP is SafePal's BEP-20 native functional token. The total issuance is 500 million, with approximately 108 million currently in circulation. The specific token distribution rules are as follows:
SafePal Fund Reserve: 20%
Team: 20%
Community and Airdrop: 15%
Product and Marketing: 15%
Seed Round Fundraising: 2%
Public Fundraising: 10%
Individual Investors: 4%
Strategic Fundraising: 9%
Ecosystem: 5%
What are the uses of the SFP Token?
SFP primarily has four functions: fee discounts, staking rewards, airdrop rewards, and community governance. The specific uses are as follows:
Fees and Discounts: Pay fees on SafePal products and receive discounts. This includes but is not limited to: discounted purchases of SafePal hardware wallets and accessories, fees for custom wallet solutions, discounts on SafePal Swap transaction fees, and fees for advertising in the DApp store.
Staking Rewards: Stake SFP tokens and earn rewards from the SafePal Earn program.
Rewards and Airdrops: SFP token holders are entitled to special coupons, exclusive events, and special collectibles from SafePal and its ecosystem partners.
Community Governance: SFP token holders can initiate proposals and vote on the use of the treasury and new features (e.g., adding new public chains to SafePal products). A minimum of 500,000 SFP is required to submit a new proposal, and 1 SFP equals 1 vote, with a voting period of at least 5 days.
Introduction to Trust Wallet
Trust Wallet is a digital currency wallet that allows users to buy, store, trade, and earn digital currencies. Trust Wallet currently supports 40 blockchain protocols and over 160,000 digital assets. It also supports staking on Cosmos, Tezos, Kava, and other blockchain protocols. Additionally, Trust Wallet provides an easy way to store and access all digital collectibles in one place.
TWT Token Distribution
TWT is the native token of Trust Wallet, existing in both BEP-2 and BEP-20 token standards. According to official information, the total issuance of TWT is 1 billion, with 347 million currently in circulation. The specific token distribution rules are as follows:
Backup Wallet: 30%
New User Rewards: 8.3%
Developers: 15%
Community Rewards for Existing Users: 12%
The official statement also indicates that over 25% of TWT tokens have been distributed to the Trust Wallet community through promotions, giveaways, or user acquisition activities. Previously, TWT could be obtained through user invitations, with both the inviter and invitee receiving 100 TWT tokens.
What are the uses of the TWT Token?
According to publicly available information, TWT can currently only be used within Trust Wallet, and the functions of the TWT token will include:
Serving as the governance token for the wallet, allowing participation in voting on new token support and product feature decisions.
Offering discounts when purchasing cryptocurrencies in the decentralized exchange within Trust Wallet.
Allowing users to buy or sell digital collectibles within Trust Wallet using TWT, enhancing the collectible market of their wallets.
Participating in comments and promotional activities for DApps within the wallet to incentivize developers to better gather user feedback.
Membership rewards and bounty rewards, with TWT convertible to BNB or ETH for use as fees on BSC and ETH networks.
User reputation, enabling users to vouch for their favorite product developers and recommend them to other products within the Trust ecosystem.
Introduction to Swipe
Swipe is a multi-asset digital wallet and Visa debit card platform designed to bring cryptocurrencies into mainstream banking operations. It facilitates users in buying, selling, and spending cryptocurrencies. Headquartered in the Philippines, it operates in the UK and Estonia, serving European users.
Swipe's Visa debit card and multi-asset DeFi app allow users to instantly convert between cryptocurrencies, fiat currencies, and stablecoins. Currently, Swipe supports four stablecoins (USDT, USDC, BUSD, and DAI) and two fiat currencies (USD and EUR). Swipe's Visa debit card service is currently live in Europe, with a domestic debit card in the US set to launch soon.
SXP Token Supply and Issuance
According to the official whitepaper, the Swipe team has decided to limit the maximum supply of SXP to 300 million, with 78 million currently in circulation. Additionally, the supply ratio is subject to regular changes, as shown in the figure below:
Currently, the whitepaper only discloses the distribution of 80% of the tokens, while at the same time, the smart contract will consume 80% of the transaction fees on the Swipe network. The remaining 20% will be retained within the ecosystem. According to the team's explanation, this fee will ultimately be distributed among network validators, and token burns will continue until the total supply reaches 100 million SXP. From that point on, the supply will no longer decrease. All fees collected by the network will then be distributed among network validators.
What are the uses of the SXP Token?
The first use is that token holders can enjoy various discounts. SXP holders can use their tokens to pay transaction fees on the Swipe network, including transfers made through the Swipe wallet and Swipe Visa card.
Additionally, it encourages users to use the Visa debit card, which has four different tiers, incentivizing users to hold or acquire SXP. The more SXP tokens held, the higher the card tier.
Holding SXP also brings additional benefits to cardholders, including shopping discounts and free subscriptions to popular streaming services. Users who stake 30,000 SXP for six months are also eligible for an 8% cashback on spending and other additional allowances.
The second use is that users who stake can earn SXP rewards in exchange for their contributions to maintaining the network.
The third use is as a payment method. SXP tokens are well-suited for payments at over 60 million locations worldwide. Payments can be made through merchants accepting cryptocurrencies or directly swiping the Visa card. In terms of transactions, SXP can be transferred on Ethereum and Binance Chain.
Lastly, SXP holders can participate in network governance, propose suggestions, vote, and influence decisions affecting changes to the Swipe network protocol.
According to the official 2021 roadmap released by Swipe, an upgrade to the Swipe Wallet App v2 will be conducted. This will enable Swipe Swap, allowing users to conduct on-chain transactions of digital assets and support SXP as a transaction fee. Furthermore, the roadmap indicates that Swipe will cease the token burn mechanism in the card issuance process and will burn 10 million SXP from the Founders unlock in August 2021.
Introduction to TokenPocket
TokenPocket is the largest digital currency wallet globally, supporting all mainstream public chains, including BTC, ETH, EOS, TRX, BSC, HECO, OKT, IOST, Polkadot, and Kusama. The wallet's private keys are stored on the user's device and are never uploaded to servers, allowing users complete control over their crypto assets. Users can store, swap, transfer, receive, and trade cryptocurrencies within the wallet.
Through the TokenPocket DApp browser, users can experience over 3,600 DApps, not only obtaining free airdrops but also earning tokens through certain (PoS) mining pools and participating in decentralized finance (DeFi) like MakerDAO.
What are the uses of the TPT Token?
TPT is currently positioned as the only platform token in the TokenPocket ecosystem, enjoying governance rights.
TPT can circulate in various scenarios, serving as a payment method and proof of membership rights.
TPT can be used for purchasing resource fees on multiple public chains, unlocking wallet VIP features, paying for TP advertising fees, etc. Currently, the total supply of TPT has been reduced from 5.9 billion to 3.46 billion.
According to official statements, there is currently no clear token distribution mechanism for TPT. Significant functional upgrades will be made in the cross-chain aggregation trading section, at which point TPT will also serve as the core token, endowed with more rights, while its economic model will be introduced.
Introduction to MathWallet
MathWallet is one of the wallets in China that supports the most public chains. Currently, it supports over 60 public chains and DApp ecosystems, including BTC, ETH, EOS, TRON, Cosmos, Binance Chain, ONT, Polkadot Substrate, NEO, IRISnet, ChianX, EOSC, ENU, BOS, Telos, NAS, ESN, Kusama, Edgeware, Harmony, Ethereum Classic, TomoChain, Fibos, Worbli, Hashgard, and more.
MATH is a blockchain platform centered around multi-chain, cross-chain, and asset hubs. The MATH Token is the foundational token of the MATH ecosystem (including: MathWallet, MATH VPoS Pool, MathDAppStore, MathStaking, MathCustody, MathNFT, MathChain, MathHub, MathDEX, MathID, MathPay, etc.), and products and services under MATH will use this token as a medium of value.
MATH Token Supply and Issuance
According to the official MATH economic model, the total supply of MATH is 200 million, with an initial circulation of 80 million, and currently, 114 million are in circulation. The specific token distribution is as follows:
What are the uses of the MATH Token?
Pay for MATH DApp Store services.
Obtain discounts on MATH DEX transaction fees.
Pay for MATH NFT Market services.
Access paid features of MATH Staking Pool.
Access paid features of MATH Pay.
Pay for MATH ID Card services.
Gas fees for MATH Chain.
MATH Staking rewards.
Conclusion
Through the statistics of five wallets that have issued tokens in the market, it is found that the main functions of wallet tokens currently include some transaction fee discounts, participation in the governance of the wallet ecosystem, and project parties can pay for advertising on the platform using their tokens. However, the overall user base of the cryptocurrency world remains relatively small, and more governance and iteration mainly depend on wallet operators.
As for project parties, they can use tools like Qimai Data to check the download volumes of different wallets on iOS clients, while Android client data can be checked via Google Play. Data from official websites can be checked through Similar Web. Additionally, tools like Google Trends, Baidu Index, and WeChat Index can be used to assess the user activity level of a wallet.
