xMoney live AMA Key Takeaways: UTK, Governance, Team, and Growth Plan

Martinho Aragão and Lucian Todea answered 29 questions regarding the UTK 3.0  Proposal and beyond

Last week, Lucian Todea (MultiversX co-founder and COO) and Martinho Aragão (xMoney executive Lead and CPO) hosted an Ask Me Anything (AMA) session on Twitter Space, addressing important questions the community submitted and shedding light on xMoney’s leadership, UTK 3.0 Proposal of Improvements, market & marketing expansion plans, including strategies to increase merchant adoption. 

Anita Erker, Chief Marketing Officer at xMoney, also took the opportunity to go deeper into the upcoming programs that are part of the xMoney Expansion Initiative. These include the introduction of the exclusive xMoney Merchants Community Network (xMCN).

During this AMA, the team provided answers to general questions (leadership team, expansion focus, etc), Exchanges, Guilds & Incentive Mechanisms (cashback and staking rewards), as well as the governance voting process.

Now, it’s time to (re)visit the FAQs discussed during the AMA, fully organized in this article, so you can become aware of what’s ahead in the growth plan.

1 – Who will be leading the xMoney team?

Martinho Aragão is leading the team, primarily due to his experience in product development and DeFi experience, while the founding team remains in strategic advisory roles. With the recent acquisition by MultiversX, the focus has shifted towards accelerating deliveries. However, the departments and the people leading them remain the same. This seamless transition allows for concentrated efforts on product development and overall business growth.

2 – What are xMoney’s plans for market penetration in the United States?

While the US market expansion has been frequently discussed, xMoney’s current focus lies on the European market. This decision is driven by several factors, including the partnership with Twispay and the need to consolidate xMoney as a brand. By combining services with xPortal, such as on-ramp and off-ramp functionalities, xMoney aims to foster sustainable growth in multiple areas. Furthermore, the “Brussels effect” plays a significant role. As regulations on crypto payments in the European Union increase, compliance with these regulations opens the doors to expand to other regions more easily. But the US market is not out of the picture. More about it here.

3 – How does xMoney plan to increase merchant adoption?

Our current approach extends beyond e-commerce, focusing on businesses, services, and trades that are more than traditional online merchants. To encourage merchant adoption, xMoney is improving the payouts process to make it quicker and enhancing APIs for better customizations and integrations. By bridging the gap between crypto and fiat in a reliable and trustable manner, xMoney aims to provide a broader scope of initiatives that benefit individuals and businesses worldwide. Our vision transcends mere merchant adoption; we want to go beyond, working towards the Ecosystem and business expansion. For example, at xMoney, we recognize the importance of catering to small payment transactions, where card payments may currently be preferred over crypto transactions. Therefore, we are expanding our product offering in that direction. These adjustments will drive adoption beyond and lead to growth. Marketing initiatives are also crucial in this process, and they will be explained in the next set of questions.

4 – What are xMoney’s plans for B2B marketing?

xMoney acknowledges the consistent increase in merchant numbers and recognizes the need for better visibility of clients that accept crypto. To address this, we are exploring ways to bring our merchants closer to the buyers, enabling users to easily identify and transact with them. Additionally, we’re excited to announce the upcoming xMoney Merchants Community Network (xMCN). This dynamic ecosystem will serve as a collaborative space for entrepreneurs, innovators, and businesses utilizing xMoney’s product suite. By fostering collaboration within the ecosystem, xMoney aims to empower merchants to innovate, gamify their offerings, and grow further without the need to seek external partners. The xMCN will bring together like-minded businesses, facilitating seamless collaboration and supercharging their collective success.

5 – What is the exclusive affiliate program offered by xMoney?

The exclusive affiliate program is a B2B program within the xMoney Merchants Community Network. It allows businesses to refer, recommend and bring in more startups and brands (both Web2 and Web3) that can benefit from xMoney product solutions. By participating in this program, businesses can increase their passive income and generate additional revenue streams.

6 – Will xMoney introduce a recognition program for top businesses?

Yes, we plan to launch the xMoney Merchant 2023 program. This special recognition aims to honor and showcase top-performing businesses within the xMoney ecosystem. It serves as a unique global reward program, highlighting the success of businesses that utilize xMoney’s modern fintech solutions and products within the MultiversX ecosystem. This initiative will also inspire other businesses and users to join the xMoney community.

7 – How do these B2B activities align with xMoney’s marketing goals?

xMoney understands the power of real stories and personal experiences in marketing. By providing platforms for businesses to share their success stories, we’ll demonstrate how the fintech solutions and products within the MultiversX ecosystem directly contribute to business growth. These activities serve as powerful marketing tools, as businesses’ firsthand experiences with xMoney resonate with potential users and enterprises. The goal is to onboard the next wave of Web3 users and businesses by showcasing the tangible benefits and success stories of existing merchants within the xMoney community.

8 – How does xMoney collaborate with MultiversX when it comes to marketing?

MultiversX is our parent company, thus any marketing events announced by MultiversX inherently promote xMoney services, and vice versa. This collaborative approach allows both entities to reach a wider user base and tap into various markets and regions. The unified marketing efforts amplify the impact of the initiatives and contribute to the overall growth of both xMoney and MultiversX. The expanded team and combined resources strengthen the marketing efforts and support the expansion of the ecosystem.

9 – Will the name of the token change on different exchanges? When will it happen?

The name of the token will change from Utrust Token to xMoney. However, the ticker symbol will remain UTK. The team decided to postpone these changes on platforms like CoinMarketCap and centralized exchanges, such as Binance, to align them with the outcome of the governance vote. Once the vote is concluded, the team will begin updating the platforms with the new name and other relevant information, ensuring that the listings are up to date.

10 – Why isn’t UTK available as an ESDT token on centralized exchanges other than Binance?

Currently, UTK as an ESDT (eStandard Digital Token) is only available on Binance. The availability of UTK as an ESDT token on other exchanges, such as KuCoin or Wabi, depends on the technical integration on the exchanges’ side. xMoney is in contact with these exchanges, expressing their interest in having UTK as an ESDT token listed. However, it ultimately depends on the exchanges’ ability to support the ESDT standard. In the meantime, users have the option to utilize a decentralized bridge to convert UTK from Ethereum’s ERC-20 standard to UTK ESDT, providing an alternative to Binance for token holders.

11 – Does xMoney plan to create stablecoins for all fiat currencies?

Currently, xMoney is not exploring the launch of stablecoins for different fiat currencies. However, the focus is on integrating more currencies and chains into the platform. The goal is to enable buyers to make payments with the assets they already hold, without the need for conversion. While converting to MultiversX is encouraged for cost and speed benefits, launching stablecoins is not a current strategy for xMoney.

12 – What happened to the 0.5% fee that was supposed to be used for the burn solution?

The plan to use the 0.5% fee for a burn mechanism has been put on hold due to legal concerns surrounding burning mechanisms overall. Instead, xMoney is exploring alternative ways to finance the cashback program, such as staking and utilizing the fee collected from payments, which could be used to fund staking rewards and cashback. While the burn mechanism may be revisited in the future, if a safe and compliant approach can be identified, xMoney is currently exploring alternative ways to achieve similar effects or create a completely new mechanism aiming towards the same goal. The idea is to create a self-sustainable cashback program that aligns with legal requirements and provides value to users.

13 – What other mechanisms are being considered instead of the burn mechanism?

While the burn mechanism is on hold, xMoney is actively exploring other ways to enhance token economics and provide value to the community. One approach being considered is the implementation of a staking mechanism. Staking would allow token holders to lock up their tokens for a specific period and contribute to the network’s security and operations. In return, participants would receive rewards in the form of additional tokens. There are no limitations when it comes to who can stake the tokens – business owners, merchants, individuals, and community members. The team is currently designing the staking mechanism while conducting thorough research to ensure its effectiveness, security, and compliance with regulations.

14 – Are there any plans for partnerships or collaborations to expand token utility?

xMoney is actively exploring partnerships and collaborations with other projects, platforms, and companies. These partnerships are meant to expand the utility and reach of the token, create additional use cases, increase adoption, and provide more value to the community. The team recognizes the importance of strategic alliances in achieving these goals and is working to establish meaningful connections.

15 – Why is $MEX burned, but $UTK is not?

The burn mechanism for $MEX is different from what was proposed for $UTK. The burn for $MEX is automatically done at the smart contract level and is associated with the decentralized exchange, xExchange (previously Maiar exchange). It operates in a transparent and secure manner, with fees collected from users. This approach differs from UTK’s burn mechanism and is not considered within the same concept – we would need to apply burn across multiple chains, not just one. As a result, it can’t be entirely implemented in a decentralized fashion. Additionally, technical limitations and challenges exist in implementing an automatic burn mechanism for UTK due to different payment methods and other factors.

16 – What is the status of merchant yields and how will it benefit merchants?

Merchant yields were proposed to provide additional benefits to merchants, leveraging the funds collected from payments. However, due to market changes and the need for quick payouts to clients, the time window to utilize these funds for yield generation is often too short. Instead, the new token economics focus on alternatives like staking and lowering fees to provide merchants with profits and reduced fees. xMoney can guide merchants on investment options in the blockchain space, but the emphasis is on delivering value in a way that aligns with business requirements.

17 – How does UTK directly benefit from xMoney’s success and tokenomics?

The success of xMoney’s tokenomics, including UTK 3.0, directly benefits UTK holders through various mechanisms. The fees collected are utilized to finance sustainable models such as cashback and staking rewards. As the xMoney platform expands, there are more opportunities for businesses and buyers to benefit from cashback and reduced fees. Additionally, partnerships, extended services, and increased revenue streams enhance the overall value of UTK. The goal is to create a robust ecosystem where everyone can benefit from its growth.

18 – How will merchants benefit from Guilds?

Guilds provide merchants with a powerful tool to create partnerships and campaigns directly with guild masters. Merchants can collaborate with Guilds to offer special promotions and incentives to guild members, such as additional cashback for a specific period. The decentralized nature of guilds allows for direct communication and collaboration, offering merchants more flexibility and opportunities to engage with the xMoney community.

19 – What will happen when the staking rewards and allocated cashback rewards are depleted?

The sustainability of staking rewards and cashback rewards is crucial for the long-term success of the ecosystem. While the initial rewards pool is allocated for these purposes, the goal is to transition to a self-sustainable model supported by the growth of the xMoney network. As the user base, number of merchants, and sales increase, the rewards can be financed by the revenue generated from the business itself. The transition from the initial allocation pool to a self-sustaining model will depend on the network’s growth and user staking preferences.

20 – How long will there be staking rewards at 15% per year, and will parts of the income be used for a permanent payout?

The duration of staking rewards at 15% per year and the rewards for guild masters depend on various factors. While the initial expectation is that the rewards cashback pool can sustain these rewards for around four to five years, the actual duration may vary based on user staking behavior and the growth of the xMoney network. Additionally, we may choose to allocate some fees captured through sales to sustain the rewards pool before it is depleted, further extending the rewards program.

21 – What will happen to the unallocated rewards that are not distributed?

If there are unallocated rewards due to the current APY or other factors, xMoney may redirect them to the staking and cashback rewards pool. These rewards can be utilized in the future to sustain the rewards program or even be boosted during specific periods, such as when guilds are launched. The purpose of these rewards will remain the same, and they will continue to contribute to the overall incentives and benefits provided to the xMoney community.

22 – What is the progress of guilds, and when will it be completed?

The development progress of guilds is dependent on the outcome of the governance vote. Once the vote is concluded and if guilds are approved, a clear timeline for the development and implementation of guilds will be provided. However, if guilds are not approved, alternative plans and next steps will be communicated to the community.

23 – Why are Guilds not mentioned on the Roadmap?

Guilds might not be mentioned on the Roadmap due to the ongoing governance vote and the need to ensure alignment with community decisions. Once the vote outcome is determined, the roadmap will be updated accordingly to reflect the development and integration of guilds, if approved.

24 – How does cashback work? Will it be limited to purchases with merchants associated with a specific guild?

Cashback is not limited to purchases from merchants associated with a specific guild. Users will receive cashback on purchases made from any merchant within the xMoney network. Guilds may provide additional benefits, discounts, or bonuses for users who make purchases through their associated merchants, but cashback is available for all purchases within the xMoney network.

25 – Will cashback be in UTK only or also in EGLD?

Cashback will primarily be in UTK for purchases made within the xMoney network. However, there is an exception for the xPortal app’s card feature. Users of the xPortal app can choose to receive cashback in either UTK or EGLD when making payments with the xCard. This option provides flexibility for users to select their preferred cryptocurrency for cashback when using the xPortal card.

26 – Why are the tiers for cashback defined in USD instead of UTK?

The decision to define the cashback tiers in USD was based on market conditions and ease of estimation. USD values provide a more familiar and stable reference point for users. However, it’s important to note that these tiers are subject to change based on market conditions and user behavior. Flexibility and adaptability are key to ensuring a sustainable and user-friendly cashback system.

27 – What are the final card tiers that will be defined?

The final card tiers will be determined based on market conditions, user feedback, and the overall growth of the xMoney ecosystem. As with any card program, the tiers may evolve over time to align with changing market dynamics and user preferences. The objective is to create a rewarding and valuable card program that meets the needs of users while maintaining the sustainability of the system.

28 – Will the wallets of executives in xMoney and MultiverseX be eligible to vote in the governance vote?

Wallets of executives and pools controlled by the xMoney and MultiversX teams will not be eligible to vote in the governance vote. However, other tokens held by the team members that are not actively monitored may be eligible to participate in the vote. The intention is to ensure a fair and inclusive governance process that allows community members to have a say in decision-making.

29 – Why did xMoney decide to introduce a governance vote after many years?

The transition from Utrust to xMoney brought about several changes, including a shift in branding, values, and objectives. The integration of expertise from MultiversX and access to their blockchain technology played a significant role in the decision to introduce a governance vote. It provided an opportunity for xMoney to learn from MultiversX’s successful community engagement practices and leverage their blockchain capabilities. The governance vote allows more decentralized decision-making and empowers the community to shape the future direction of xMoney.

In conclusion, we would like to express our appreciation to the community for joining us and actively participating in our discussion. Your questions have provided valuable insights and allowed us to address important topics surrounding UDK 3.0 and the governance vote.

We encourage you to visit our Growth Page, where you will find all the necessary information regarding the governance voting process, including the timeline of the random snapshot and the voting period. You can also access the UDK 3.0 rationale and explore the comprehensive list of frequently asked questions.

For a wider Ecosystem context – please, visit the MultiversX Hypergrowth plan where xMoney plays an important role in driving further the ecosystem expansion. 

Remember that your engagement and feedback are essential to the growth and success of xMoney. We value your continued support and look forward to building a stronger and more inclusive ecosystem together. 

If you have any more questions or need further clarifications, feel free to reach out to us.

Thank you once again for your participation, and let’s GROW.