The Chi gastoken (CHI) is an ERC20-standard token aimed to help reduce 1inch users' transaction fees. Chi is pegged to the Ethereum network’s gas price.
Why do you need a gastoken in the first place?
Every transaction on the Ethereum network requires some gas. A gastoken, such as Ethereum's GST2, facilitates transactions with the same amount of work but less gas. To encourage smart contracts to erase unnecessary storage, Ethereum provides a refund for each burned element, such as a token. As a result, in the process of burning, a gastoken's smart contract erases storage filled during minting. CHI, 1inch's implementation of gastoken, is better optimized than GST2 and, therefore, enables users to save more.
How much can you save using Chi gastoken?
Transactions on the Ethereum network require substantial gas, pushing transaction fees to $10 per transaction or more. The burning of Chi tokens in the same transaction would reduce gas costs by almost one half. Please, note that for substantially reducing your transaction costs, you need to obtain the Chi gas token (CHI) when the gas price is at least one half of what it will be at the moment of releasing (burning) the gas token. E.g.: if you bought (minted) CHI at 20 gwei, to profit from burning CHI, you have to burn the gas token at 40 gwei minimum, achieving a x2 ratio. More calculations you will find here.
How can you get the Chi gastoken?
You can mint CHI directly on Etherscan.
Alternatively, you can mint CHI on 1inch exchange. To do so:
• go to legacy.1inch.exchange;
• select the ETH(WETH)/CHI token pair and the amount in the dropdown window;
• deactivate all the DEXes apart from CHI Minter (100%);
• confirm the transaction from your Web3 Wallet;
• do the swap.
Please note that, due to the block limit, the maximum minting limit is 140 CHI. We deliberately use about one half of the block, so that miners won't reject this type of transaction, which is less profitable for them.
How to activate Chi gastoken?
To use the Chi gas token (CHI) for reducing your transaction's gas cost, you need to have Chi tokens on your balance and activate them from the 1inch UI.
- go to settings;
- click on the ‘dragon’ icon on the top left side;
- confirm the transaction in your wallet.
Please, note that CHI can be used for nothing but swaps on 1inch.