CHEX is a blockchain technology company powering B2B distribution of commodity and finished products in legal Cannabis markets (Marijuana and Industrial Hemp). The CHEX (Commodity & Holdings Exchange) Token innovation will directly impact the optimization of established and unestablished commodity and asset exchange frameworks.

The CHEX utility token was introduced in March 2019, with utility features including fee-reduction, token locking, staking to access the Chintai Merchant Network, and “CHEX Smart Matching”.^[1][2]

Smart Matching

CHEX has multiple live markets and products that generate fees.

Every market or product that produces revenue through fees will allocate a portion of those fees to capitalize the “CHEX Smart Matching incentive pool”.

This pool will be used by CHEX token holders to autonomously incentivize token utility in token leasing markets.

Additionally, a portion of the CHEX Smart Matching incentive pool could be burned (permanently retired from circulation) to incentivize other behaviors that benefit platform participants and secure platform integrity (such as the issuers or Chintai Merchants that need to stake CHEX as collateral).

When CHEX holders add their CHEX utility to the CHEX leasing pool, they will simultaneously activate a process called “Smart Matching”.

After CHEX holders add their CHEX utility to the CHEX leasing pool for longer than 30 days, a portion of CHEX in the Smart Matching Incentive Pool will be used to autonomously attract and inject liquidity into token utility leasing markets such as DAPP, WAX, BOID etc.

CHEX holders are rewarded by the leasing fees that result from liquidity being lent through this process. Effectively, CHEX holders can become autonomous market makers for all Chintai token leasing markets while providing CHEX utility to platform participants that need to borrow CHEX utility.

The primary objective of this Mechanism is to ensure low-cost access to token utility across the platform. Token utility leasing has shown to enable efficient access and use of blockchain resources, which at times become cost burdensome and difficult to use for maximum benefit.^[3][4]

Overview

CHEX tokens have multiple utility features designed to give holders security controls, reduce fees, and provide opportunities for rewards. Staking CHEX enables three platform functions (Smart Matching, access to compliance enabled issuance engine, and access to the Chintai Merchant Network).

CHEX will also have a leasing market as more demand arises for CHEX utility. Staking CHEX in the leasing pool will be required to access rewards through the Smart Matching protocol.^[5]

In February 2021, Chintai raised $7.5 million in a seed round led by Block.one and Cryptology Asset Group. The other leading funds involved in this round were Collective Capital, PEER Venture Partners, and Chimera Wealth. Chintai previously raised $200K in a pre-seed round in November 2020.^[11][12]

In August 2022, China received a capital markets services (CMS) license from the Monetary Authority of Singapore (MAS) to conduct the regulated activity of dealing in capital markets products, including securities and units in a collective investment scheme. Chintai is now regulated and licensed by the MAS.^[9][10]

Chex Token Utility

Reduced Fees

Paying platform fees with CHEX results in reduced fees when compared to paying platform fees in other tokens or currency.

Stake - Merchant Network

Merchants will be required to stake CHEX in order to receive the fees from the trading activity in a given market. This is required to stop merchants from setting up as many marketplace as they like, and therefore having the potential for abuse.

If a merchant does not stake the full required amount, then a fraction of their fees could be burned proportional to the missing amount of CHEX to be staked.

Stake - Issuance

All token issuers will be required to hold CHEX as collateral in the form of a bond throughout the distribution event. If an issuer is unable to provide collateral, Chintai will loan collateral to them. This loan will be paid back in full before the token issuer receives proceeds from their issuance raise. In the case the issuer is unable to fulfil their obligations, the collateral will be used as insurance to recuperate any losses for Investors.

Stake - Collateral Pool

CHEX holders will have the option to stake their tokens to the collateral pool for high risk-high reward opportunities. The collateral pool will decouple the risks normally associated with offering loans using other tokens.

Token Allocation

• 60% was distributed in a 240-day KYC auction (certain geographic regions including the U.S and China, and countries with international sanctions were excluded)

• 20% distributed to founders, vesting over a 2-year period 2019-2021

• 10% reserved for bug bounties and project advisors. Project advisors will be subject to the same 2-year vesting schedule as founders

• 10% reserved for strategic affiliate partners and to encourage investment into Chintai ecosystem development, particularly the Merchant Network.^[6][7][8]

Team

David Packham - Founder, CEO

Phillip Hamnett – CTO

Ryan Bethem – COO

Andrew Diedrich - Full-Stack Developer

MICHAEL NASH - Smart contract Developer

Kai Jing - Front-End Developer

Tom Bicknell - General Counsel