What are Chips Tokens?
Learn everything there is to know about Chips Tokens (cTokens)
cTokens
cTokens are the core building block of the Chips platform, representing programmable slices of ASIC mining power. Each cToken corresponds to a fixed hashrate allocation on a supported Proof‑of‑Work network. By abstracting the physical hardware, cTokens enable seamless trading, flexible mining configurations, and transparent reward distribution.
These tokens are locked into a rental alongside our kWATT token, and mining/earning rewards commences immediately.
Available cTokens
cBTC: Represents 1 TH/s of Bitcoin mining power.
cKDA: Represents 1 TH/s of Kadena mining power.
cLTC: Represents 0.1 GH/s of merged Litecoin/Dogecoin (LTC/DOGE) mining power.
All three cToken variants will be listed on decentralized exchanges (DEXs) before the end of Q3 2025
Key Features
Tradable Assets: Once minted, cTokens can be freely traded between users and will soon be tradeable on supported Decentralized Exchanges (DEXs)
Fixed Hashrate: Each token guarantees its assigned hashrate capacity, ensuring predictable mining performance.
Instant Activation: cTokens, when paired with kWATT tokens, activate mining immediately upon purchase - no hardware setup required.
Acquisition & Usage
Choose Your cTokens: Choose between cBTC, cKDA, or cLTC based on the mining network you want to participate in.
Obtain cTokens: cTokens can be purchased directly via the Pre-Order Hashrate tab on the site, or you can purchase them in tandem with our kWATT energy token and start mining immediately through the Start Mining tab.
Manage Your Position: Lock your cTokens to accumulate mining rewards, hold them to hedge against hashrate pricing increases, or trade them on DEXs to adjust exposure to mining power.
Pricing Mechanism
The Chips Oracle continuously ingests live data - coin prices, network difficulty, and energy efficiency - to dynamically adjust the on‑chain price of each cToken. This ensures that miners pay a fair market rate for hashrate while benefiting from transparent pricing.
Planned Burn Mechanism
ASIC miners have a finite lifespan—typically 4–6 years—before they become outdated or unprofitable. To mirror this real‑world hardware turnover, Chips will activate a burn mechanism in Q1 2026 under the following rules:
Annual Burn Rate: Upon withdrawal, 20% of locked cTokens will be permanently burned for each full year they remained active.
Daily Burn Rate: This schedule equates to roughly 0.000548 cTokens burned per token, per day of active rental.
No Burn on Ongoing Rentals: As long as you keep cTokens locked in the protocol, they are not subject to burning—your full hashrate remains intact until withdrawal.
Full Lifecycle Burn: After five years, 100% of the cTokens from that rental will have been burned, naturally concluding the rental.
No burn mechanism applies before Q1 2026.
Conclusion
cTokens empower anyone to participate in high‑performance mining without owning or managing physical hardware. Trade your hashpower easily, lock in transparent pricing, and start earning rewards across Bitcoin, Kadena, and LTC/DOGE with Chips.
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