8x defines a protocol for recurring payments. It allows creating subscriptions for companies and paying them for users. Any ERC-20 token can be used for payment, though a stablecoin like DAI might be more convenient for both parties. For the end user, the protocol allows pulling payments instead of pushing them, which results in less cognitive costs and decreased churn.
Companies create a subscription by defining a token address, amount, period, and fee in a smart contract. This fee will be paid to one of the service nodes to regularly execute payment transactions. The company can then share this contract with its customers.
Once a customer opts into a subscription, a service node can trigger payments from the customer to the company once per pay period. Nodes who hold more 8x tokens will have a priority in processing transactions and therefore will earn more fees. Service nodes also need to stake tokens. Staked tokens will be slashed if the node fails to process the transaction.