I think in about 1 year we’ll begin to see a pick up in EOS leasing. Right now we have only lenders (Folks who own EOS looking to submit loans), no borrowers (very small developer community currently) and the price is too low ($5.80 at the time of this writing) so there’s no need to rent when the price to own is so affordable. However, for folks who do decide to lease today, they will not be leasing at 1-5% or higher because again, dapp developers can just go buy and own EOS for less than $6 per token.
Leasing will be in HUGE demand when we start to see more dapp’s migrate from other platforms and find success on the EOS platform. Here’s what I mean. We need to see more dapps like “EOS Bet”, which was once on Ethereum dapp, migrate over to EOS given what that they see EOS as “the platform” that will maximize the potential of their dapp . Sure, we will see more and more original dapp’s be developed and come directly to EOS the EOS blockchain, but we have to think outside of the EOS-system.
There are currently around 1,000 dapps built on, but not really running on, the Ethereum blockchain. The problem is, every dapp on the network is currently sharing a blockchain with a max TPS (Transactions Per Second) of around 15TPS. That’s 1,000 different dapps, many of them requiring the ability to register transactions consistently if established, will have to share a blockchain that can only process 15 TPS. But even if ETH provided the proper TPS, we have to take gas into consideration, which can kill many dapps (such as betting or gambling dapps) that require the ability for the user to be able to make small bets on the network without being charged a fee outside of the crypto they actually bet. Similarly so, dapps like TenX, also built on ETH, will need the ability to make transactions quickly for their customers and without the added gas-fee just for operating on the network.
Once these individual dapps begin to migrate over in an effort to maximize their potential on the EOS network, there will be a sudden “shift” and there will be dozens, even hundreds of dapps migrating over to EOS simultaneously….from a multitude of blockchains. Not just because of the chain itself, but because of the community and tools surrounding the chain. That is when I believe Chintai will explode. Think about it, These projects have their own community that they will also migrate over to EOS through that transition. A community that have supported that project, probably purchased during the ICO phase and were simply waiting for the opportunity for the project to establish their use-case, a use-case that has been limited by current chains.
Developers migrating over will need EOS in order to access the network. This will cause the price to rise due to supply/demand. There will be a moment in time (I am not sure what price an EOS token must be) where Developers will seriously consider if renting in the beginning will be a more viable option to begin in order to get their project off of the ground. Once this happens, then the Chintai and REX leasing market will explode.
Furthermore, Chintai is in a very unique situation. While REX will be a Dan Larimer creation, that will more than likely be exclusive to the EOS blockchain. Chintai on the other hand will not only be able to establish a leasing market for EOS, but we must also remember that any blockchain created using the EOSIO software has the ability to create a token that has built-in utility, meaning that the token represents resources on the network…such as the Sister-Chain “Worbli” which their founder & CEO, Domenic Thomas, has already confirmed that there is a relationship between the Worbli blockchain and Chintai. We also have the EOS forked project, TELOS which is another blockchain that will add utility to the tokens that represent their blockchain. This is incredibly bullish for the future of Chintai because unlike with REX, Chintai will have the ability to implement a leasing market for every single blockchain using the EOSIO software.
How I believe the leasing market will be established on the EOS side-chains is rather simple. The EOS market will be the first to really experience the leasing boom. However, EOS will get to a price per token that even renting could be a bit expensive. New developers will begin looking into alternative side-chains, such as Telos to develop on for example, given that Telos Tokens will be much cheaper. And instead of renting borrowing EOS tokens to build on the EOS chain, they could take that same amount of funds and buy Telos tokens, and own a portion of the network outright. Let me stop and clarify…this possibility will be based directly on if Telos (or any other side-chain/sister-chain) can establish a strong community and tools for their chain. A blockchain is only as good as the tools available to developers, speed and free transactions are great options to entice developers, but if you dont have tools that can compete then some devs will pay a premium to build on EOS knowing that they will have proper resources and blockchain support. Moving forward, this will be bullish for the Telos token price, and could set the top for the leasing of EOS tokens. Speaking again of EOS, there will be a price point within EOS that will force consideration from developers to actually rent the tokens, then consider building on another EOSIO chain that has established a community and tools in order to be a viable option. Folks who are holding EOS/Telos/Worbli and every other EOSIO software-based token released down the road, will have the incredible opportunity in the near future to have multiple passive income opportunities, from airdrops on those particular chains to also leasing their resources to those developers.
In the next 5 years I see EOS having a real opportunity establishing its self as a top 2-top 3 token in the world, with ideas that promote mass adoption such as URI (Universal Resource Inheritance), a blockchain with virtually limitless TPS and the removal of gas-fees for Dapps to reach their full potential and for EOS holders to loan out their resources to the developer community similar to Real Estate, which will dry up the amount of of actual EOS tokens being traded on the crypto market.
I believe Chintai will play a major role in the overall success of not just the EOS blockchain, but many side-chains, along with providing holders of multiple EOSIO-based tokens multiple opportunities at passive income via lending the resources that their tokens represent to developers who will also airdrop their project’s tokens to those same EOS token holders.
Speaking of airdrops, I would view it as imperative that Chintai figures out a way for users who are lending their tokens to still be able to vote for BP’s as well as earn those airdrops. Most importantly, figure out a way that when developers take screenshots of the network, EOS tokens holders who are lending on their platform are being properly represented. If they implement an airgrab system then Chintai users can simply use their own RAM to access those airdrops, saving Chintai 100’s of thousands, to even millions of dollars in RAM fees over time just to airdrop to customers directly. This must be solved, and here’s an example why. If a person owns a land and a home, and they rent it to someone for a source of passive income. If they discover oil under that house while renting it out (equivalent to airdrops), doesnt the owner of the land and house also own the oil under that house? They shouldn’t lose the ability to that resource because they’re “renting”. If Chintai can figure that out within it’s first few months….sky is the limit for Chintai and for every EOS, Telos, Worbli and every future EOS side-chain token holder.
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