October 2, 2018 Chintai went LIVE! Providing the EOS ecosystem with a free market solution to network resource costs.
What is Chintai?
To understand this, you have to first understand how EOS works.
EOS is different to other blockchains in that owning EOS tokens gives you a stake in the network’s processing power and bandwidth. So to own 1% of the EOS tokens gives you 1% stake of the EOS networks processing power and bandwidth.
Chintai offers token holders and dApp developers a free market solution to network costs, through a free exchange platform. Token holders can earn passive income by leasing their resources, while dApps can save money by renting only the specific amount of resources they need without exposing themselves to market volatility or large upfront costs of launching a dApp on EOS.
Well, let’s hypothesize and say your a developer and are launching your dApp on the EOS mainnet. Now to run the transactions on this dApp you need 50,000 EOS staked to CPU/Net. At the current market price of EOS ($5.60) the initial cost just to host your dApp on EOS will be 50,000 x $5.60 = $280,000. This upfront cost and added market volatility make it expensive and high risk for dApp developers to launch on EOS. Enter Chintai offering a marketplace for token holders to lease/rent their tokens to dApp developers who need the resources.
So let’s take our hypothetical scenario and now use Chintai to get us off the ground. Instead of purchasing the 50,000 tokens on the open market, we head over to Chintai where we find plenty of EOS available to “borrow”. Let’s say the going market rate for “leasing” is 5%. There are 4 different lease terms available 7,14,21, and 28 days. We select 50,000 EOS at 5% for 28 day lease. At the end of the 28 days we owe 2500 EOS to the lenders for a total startup cost of $14,000. Much more manageable than coming up with a total of $280,000 just to get our dApp off the ground.
This hypothetical scenario is calculating costs based on a $5.60 token price. We have seen EOS all the way at $20 in the past so you can see the issues dApps will face in the future as the network grows and token price increases with resource demand. Providing a free market solution with Chintai will allow dApps to deploy and flourish regardless of the EOS token price.
Chintai was designed to look and act just like a normal asset exchange that everyone in this space is familiar with. The UI includes price graph, order book, market rates, volume, and history. At the moment Scatter DT is the only wallet integrated, but others will soon be on board.
If you have used any Crypto/asset exchange you should have no problem figuring out Chintai. Go check it out!
Kudos to the team at EOS42 and all the others involved in this epic project!
Elim Herr | EOS Nation | Community Manager
Website – https://eos.chintai.io/
Exchange site – https://eos.chintai.io/