SendCrypto is rewarding you for using our wallet, cash-back’s just got a new meaning!
Proof-of-Usage is a concept adopting the mechanics of previous well-known consensus algorithms like PoW or PoS with some logical and technical improvements. The main feature of the PoU concept is that the supply of tokens is directly related to the protocol’s level of use
How it Works
With an increase in the transaction volume in the SendCrypto ecosystem, the release of SENDC tokens algorithmically rises accordingly. The rewards that users receive for their transactions are generated from the release of SENDC tokens.
The SENDC tokens’ total supply is limited to 1,500,000,000 SENDC. The initial supply will be 36,450,000 SENDC.
Therefore, the more transactions made by SendCrypto wallet users, the more SENDC tokens are generated and allocated to users as send-to-earn rewards.
This system gives SendCrypto users a huge financial advantage, as they can receive up to 1.25% usage reward for every transaction made with their SendCrypto wallet in any supported currency (BTC, ETH, DOGE, etc.).
SendCrypto may adjust from time to time the percentage of rewards.
A Fail-Safe System
The send-to-earn system has a number of advanced built-in algorithms to prevent fraudulent activities aimed to exploit the PoU mechanics
For example, if a user tries to receive usage rewards by constantly making transactions between his own two wallets, the algorithm will identify this activity and spot it as malicious. In this case, the user will not be eligible to receive usage rewards and can be punished by the system.
Anti-cheating mechanisms are also able to recognize much more complicated schemes and fraudulent strategies for example when a user applies several wallet accounts to exploit the system. These security algorithms completely eliminate the possibility for unscrupulous users to receive usage rewards by means of imposture activities.
INCENTIVES FOR SENDC TOKEN HOLDERS
There are two primary ways to benefit from the SendCrypto ecosystem
Stake SENDC tokens
Purchase a Subscription
(using any supported coin or token)
Both methods create additional revenue for users. The higher the staking or subscription tier, the more cashback for each SendCrypto transaction.
WHEN STAKING SENDC TOKENS:
Cashback Rate (per transaction)
Cashback Rate (per transaction)
Reward Distribution Method
Usage rewards for every user accumulate throughout the day and are distributed at the end of each day
This method of rewards distribution allows SendCrypto security algorithms to fully check and analyze all of the transactions carried out during the day and eliminate the possibility of inaccurate SENDC distribution related to fraudulent activities.
Here are two simple examples illustrating the mechanics of the PoU model and our usage reward system
User A is staking 50,000 USDT worth of SENDC tokens. This gives him a 1.25% usage rewards rate. Let's say he transfers 0.5 BTC to his friend using his SendCrypto wallet. At the time of transaction, this transfer equals $20,000 (1 BTC = $40,000).
Every time he makes a transaction he receives 1.25% of his transfer amount (1.25% of $20,000 = $250) in SENDC tokens. Assuming the SENDC token price is $0.013 (TGE price) the user reward will be 19,230 SENDC tokens ($250/$0.013) for his 0.5 BTC transfer.
User B has a Tier 2 Subscription, which allows him to receive a 0.75% usage rewards rate. Let’s say he makes a 0.1 BTC donation to UNICEF which equals $2,000 at the time he makes the transaction (1 BTC = $20,000).
By the end of the day the donation was made, he receives an amount equalling 0.75% of $2,000 ( $15) in SENDC tokens. For example, assuming the SENDC token price is 1 USD, the user will be rewarded with 15 SENDC tokens for his donation.
SENDC Token Price Appreciation
The SENDC token price will rise with the expected increase in SendCrypto transaction volume
SendCrypto users are incentivized to buy and stake SENDC tokens to receive usage rewards.
According to classical game theory, more and more users will choose this strategy over time since it maximizes their utility and capital efficiency.
As more users prefer to buy and stake SENDC tokens, the SENDC circulating supply will decrease over time since more SENDC tokens will be removed from the open market and staked at the SendCrypto protocol.
Therefore, as more SENDC tokens are released into circulation as cashback rewards for transactions, more SENDC tokens will be purchased and staked by users, which will drive the price of the SENDC token up according to basic supply and demand mechanics.
Buy-Back Mechanism & Deflationary Tokenomics
The SENDC token price increase will also occur in the event that the SendCrypto transaction volume decreases
The Proof-of-Usage algorithm has a deflationary mechanism for maintaining SENDC token price stability.
When the volume of transactions in the ecosystem decreases, the protocol begins to buy back SENDC tokens from the open market and burn them, decreasing the overall circulating supply.
This prevents the SENDC token price from depreciating and adds an additional stability layer to the functioning of the overall SendCrypto ecosystem.