EOS - dApp Chintai
The mainnet launch is creeping ever closer, the public testnet of Dawn 4.0 is running courtesy of jungle and so too is the release of some sexy dApps that will give you the ability to make those tokens you have been HODL'ing make some extra cash for you.
The dApp that has me excited is Chintai. If this project delivers on time and does what it promises, you will be able to lease out your tokens to dApp developers and pull in passive income.
The promise is to deliver a feeless service (if they are they able to secure funding from a block producer) via a web front end that will allow you to interface with developers via their matching algorithm. Through this web front-end, you will be able to agree on a price (minimum price 0.0001 EOS which they have coined a Larimer, that is a little too brown nosey for my likely) and length of time. An EOS smart contract will arbitrate the rate and term and handle the punishment for noncompliance (eat that expensive lawyers/real estate agents).
Once an agreement is in place and the contract is live, new Chintai tokens will be created weekly and given to the lessor on a 1 EOS to 1 Chintai basis. At the end of a monthly cycle, the lessee must purchase these tokens from the lesser using EOS as payment. Once the term is over, the EOS tokens held in the smart contract are returned to the original owner. The beauty here is that ownership of the leased assets will always be with the lessor due to the way EOS handles accounts. There is always an owner and an active user, so even once you have leased the tokens, any airdrops will still be sent to you and the voting power attached to those tokens stays within your control.
Using Chintai is a win/win situation as tokens could be leased to a dApp for a short period during a projected high usage period at a price less than the full rate or for someone looking to test their app on the mainnet with minimum cost. The lessor never looses any of the benefits of owning the tokens and get the tokens back plus the agreed fee.
There will be a built-in reputation system so that lessors can make sure the person they are leasing pays what is due, and if not will have their 'reputation' status decremented. This will give lessers the ability to check on the reliability of who they are leasing too before 'signing' the contract.
Their website is
https://www.chintai-eos.io
The link to their white paper is here https://github.com/eos42/Chintai/tree/master/whitepapers
I am looking forward to this one.
One other thing to note on their site (sorry for the long quote)
"WHAT WILL BE EXPECTED OF A BP IN TERMS OF SUPPORTING CHINTAI?
Chintai will be funded by BP's to cover the operational costs of running the business. There will be an auxiliary fee mechanism incorporated into the leasing engine as well in times of a deficit, but the business will be primarily BP funded."
So they say its feeless and that the block producers will support running the business but I'm curious on this "Auxiliary fee mechanism" and the talk of "In times of deficit."
In the whitepapers, i didnt find anything about the "Auxiliary Fee" however they did talk about the deficit portion:
"In order to prevent a critical dependency by Chintai on BP funding, we propose that functionality is built into the Chintai lease contract in the event of a cycle funding deficit to enable a percentage of all EOS allocated to the lessors to be awarded to the dApp itself – this is set to zero as default when fully funded. During a funding deficit, this activates for a lease cycle equivalent to: X funds for period received, e.g. X + 10 funds for period required, then 10 is equally taken from every stake as a fee to fill. This is essential to ensure that Chintai can fully fund ongoing development requirements, never fails and is capable of withstanding a Sybil attack."
Not quite sure I fully understand it but it appears at any time that they identify they are in a deficit (which is not fully defined) they can engage in capturing a portion of lease revenue. Hmmmm.... part of me understands that they have to obtain money to keep the lights on but taking out of my pocket on when "feeless" is tossed all around about this isnt necessarily a slap in the face, but definitely a annoying flick in the nose haha.
Good points and glad you asked. Chintai have already secured a sponsor (EOS Dublin) so they will receive funding from them. You are right if they lose funding from EOS Dublin they need a way to cover there costs. The model will be similar to how exchanges charge you for trading, a small portion will be taken by them.
I have reached out to the Chintai team to get some solid figures and will update soon.
"The promise is to deliver a feeless service (if they are they able to secure funding from a block producer)"
I've not looked into this much nor have i seen it getting traction on Reddit however I'm curious if they have publicly stated the level of funding required to make this successful. Their roadmap is very minimalistic though i will note they have 12 block producers backing but i dont know how much stake they have into the project as it doesnt appear to have that information.