Today I will be discussing a couple of ways you can earn passive income just be owning EOS token, EOS is a fast growing network and there are a lot of opportunities of making passive income on the network. one of such opportunity is “Chintai”
WHAT IS CHINTAI?
Chintai is a high performance and zero fee and token leasing platform owned by the EOS community.
EOS being a broad network, even some experts may find it difficult navigating the network. So for a better understanding of chintai, let me briefly explain how EOS work.
EOS utilizes 3 network resources namely RAM, NET and CPU.
RAM in EOS is quite different from normal computer Ram. EOS RAM serves as a primary storage in EOS. RAM has its own separate market and its utilizes bancor algorithm to set the price based on the demand and supply. You pay 0.5% fee to buy and sell RAM.
CPU; this is termed as processing power in EOS it indicates the rate in which data can be read. It has the functions of a normal CPU. The more transaction that takes place, the more CPU that is consumed, CPU slowly refreshes within 3 days when not in use. In other to get CPU in EOS, you need to stake some tokens.
NET (network bandwidth): this is the average rate of data transfer that takes place through a communication path. The more token you have staked for network, the higher your rate of transactions.
IN EOS network, the cost of using the network for one month is equal to the cost of owning it forever. That’s the reason why people lend EOS in the first place. This is where Chintai comes to play.
Chintain is a high performance leasing platform that will allow EOS token holders to generate passive income through token leasing by making theses token available for Dapp developers. What this simply means is that you list your EOS token on ths Chintai exchange, and the Dappers or other legal entities borrow your token at an interest rate agreed upon. This interest rate is set by the free market.
For instance, a Dapp developer needs about 10,000EOS token to stake to CPU and NET to run he’s Dapp. Let’s say the cost of 1 EOS at this time of transaction is $4.7, so the cost of hosting such Dapp on EOS will be $4.6 * 10,000EOS which give $46,000 therefore, it will cost $46,000 to host such Dapp on the EOS network. That’s pretty expensive, so what the Dapper will simply do is to head to chintai were there are plenty of EOS to borrow and pay a little interest instead of buying the EOS.
So if you want to earn a passive income on your EOS, just head to chintai and lease them out to Dapp developers. a much detailed article on how to use the Chintai exchange latter.
2. Another way of earning passive income by just owning EOS is through staking and voting for BP’s . BP’s often gives a little incentives to the stake holders who votes for them depending on their voting power. So if you want to earn token just by owning EOS, try and stake good amount of EOS and vote BP’s.
Do ensure to check back for a detailed article on how to effectively use and navigate the Chintai exchange.
Thanks for reading and hope you find my article useful!