Every worthy cryptocurrency has some inherent benefits users derive from it (use case), and the same applies to JAX coin. This stablecoin offers a lot of benefits to users. Some cryptocurrencies help users generate income, engage in a transaction, etc. In the case of JAX, we will look into its special benefits. However, before we enumerate and discuss these benefits, let us understand what JAX is.
What is JAX?
JAX is one of the native cryptocurrencies of the Jax.Network blockchain. The coin is designed to align with the market forces of demand and supply for stability. Miners can increase their hash power to mine more JAX when there is increased demand. Also, they will reduce their hash power when there is low demand. This way, the overall value of JAX remains stable, while adapting to the economic situation around the world.
Many people might think that JAX coin is a mere stablecoin upon peripheral examination, However, it is more fascinating than stablecoins. Stablecoins are pegged to an external real-world asset to help stabilize their value. On the other hand, JAX is not. It is a self-sustaining cryptocurrency. JAX maintains a stable value in the crypto market by adjusting its supply to meet the market demand. Now, let us discuss the benefits of JAX.
Benefits of JAX coin for users
- They are used as a store of value
Over the years, we have depended on precious metals like gold as the trusted stores of value. These precious metals serve as a store of value because they have essentially perpetual shelf lives as well as some utility outside their use as money. That is the reason people convert their assets into gold to preserve the asset value against unfavorable economic situations like inflation.
With JAX, users can easily store their assets without any fear of future depreciation. During times of economic downturns like hyperinflation, currencies become unpredictable. JAX can be used as a hedge against such occurrences. . Since the value of JAX is stable over time, it serves as the perfect store of value, just like precious metals like gold and silver.
- Users can pay for transaction costs on Jax.Network with JAX
JAX coins serve as means of payment on Jax.Network. One of the major goals of Jax.Network is to provide the scalability needed to serve as a global payment system. This is a very realistic goal that will be a massive advantage for Jax adopters. They will benefit immensely from this because JAX coins will be used to pay for transactions on Jax.Network.
- Users can use it to send funds to their families and pay international suppliers for goods and services.
Due to its stability, speed, and lack of third-party interventions, most people will choose JAX for their international transactions. Therefore, users can pay their international suppliers for goods and services using the token. The good thing is that transactions happen fast and efficiently, unlike what you experience with most centralized payment systems, including some cryptocurrencies.
Besides business transactions, users can also leverage JAX coins to send funds to family members in another country. Such transactions can be done in minutes or a maximum of a few hours.
Additionally, users need not worry about the reserve of JAX, as seen in USDT recently. This is because JAX is not backed by any asset, so there’s no need to keep reserves for it. This gives JAX an edge over other major stablecoins.
- Users can use it to get yields in their DeFi apps and also earn fees by providing liquidity on the network
Due to the volatility of crypto assets such as Ethereum, yields in DeFi apps are usually paid off with a stablecoin. Otherwise, a drop in the price might wipe out the interest rate earned by users. Therefore, stablecoins are crucial for the entire DeFi ecosystem. In our network, people can lock JAX and pay the yields in JAX coins, ensuring the necessary stability in price and security for the entire ecosystem.
Another way to earn more JAX is to become a liquidity provider on our network. For that, you can download our centralized wallet and lock your JAX for a certain period of time. In exchange, you will receive part of the fees for cross-shard transactions. Indeed, our shards are independent from each other, and it is necessary that someone provide the necessary liquidity for them to work smoothly. You can be part of it and retributted for it.
These listed benefits of JAX to users show the importance of the coin and highlight the impact of its underlying protocol. It is a reminder of the positive disruption that Jax.Network is bringing to the blockchain space.