Chips.Finance Grantee Spotlight: Democratizing Crypto Mining Built On Kadena

In less than two decades, the cryptocurrency mining industry has evolved from bedrooms to boardrooms; what was once possible through hobbyists on Raspberry Pi has grown to a global elite that mines through industrial operations. They are all vying for their piece of a massive market like prospectors rushing to the American frontier during Manifest Destiny’s Gold Rush era.

Corporations are competing for a piece of the market, and it’s not hard to understand why. The global cryptocurrency mining hardware market generated $2.1 billion in revenue in 2023 and is projected to reach $4.07 billion by 2030, representing a 9.8% CAGR (Grand View Research, Statista). The mining hardware market alone is forecasted to grow from $23.7B in 2024 to $51.8B in 2030 (Research and Markets via Yahoo Finance). This growth reflects consistent investment in specialized ASIC and GPU devices since 2018, making it more expensive but also more rewarding to compete.

This growth created an ironic contradiction to crypto's foundational philosophy of decentralization. Mining, which was once accessible to anyone with an internet connection and a basic computer setup, has evolved into an exclusive domain for well-capitalized players. Rising equipment costs, increasing technical complexity, and sophisticated energy management requirements have effectively priced out retail participants, transforming what began as autonomous activity into an institutional game.

Kadena grantee, Chips.Finance, is bringing crypto mining back to its roots by tokenizing hashrate and making mining as simple as clicking a button.

Breaking Down the Barriers to Mining

The challenges facing individual miners today are daunting. A single Bitcoin ASIC miner can cost thousands of dollars, require specialized cooling infrastructure, and generate enough noise to disturb an entire neighborhood. Add volatile energy costs and the technical expertise needed to maintain these machines, and it's clear why mining has become the domain of large corporations.

"Mining cryptocurrency requires managing hardware and software that demand technical skills more suited to computer programmers than casual Windows users," said James Folkard, Chips' co-founder and CEO. His journey began in 2019 when he experienced these barriers firsthand, investing in soundproofing and ventilation while struggling with UK energy prices that made profitability nearly impossible.

The breaking point came during COVID when equipment prices skyrocketed and supply chains collapsed. "It was around this time that I first met Todd and Daniel through our shared interests in cryptocurrency mining, NFTs, and all things Kadena, and we quickly recognized our shared experiences," Folkard explained. "Together, we envisioned a mining future where individual freedom of opportunity, combined with full user control of assets and increased transparency of mining operations, takes center stage — a truly decentralized, sustainable model designed to break down barriers while solving challenges around liquidity, access, trust and risk."

The Solution: Mining Without the Machines

Chips' innovation lies in its tokenization model. Instead of buying physical miners, users purchase cTokens, digital representations of real hashrate backed by actual ASIC machines in professional facilities. Each real-world asset (RWA) backed cToken corresponds to specific mining power: cKDA for Kadena, cBTC for Bitcoin, and cLTC for merged Litecoin-Dogecoin mining.

"Users simply provide USDC, ETH, wBTC, USDT, or KDA to start mining," said Todd Leach, Chips' CTO and former lead developer for Kadena Mining Club. "Our smart contracts handle everything; acquiring the necessary cTokens and kWATT energy credits automatically."

The DEX-tradeable kWATT token system brings unprecedented transparency to energy costs while providing users with more liquidity options. Priced at $0.08 per kWATT, these tokens cover hosting expenses upfront and are burned as electricity is consumed. Longer commitments and bulk purchases unlock automatic discounts with hosting costs from as low as $0.061 cents for larger customers, making industrial-rate mining accessible to retail investors.

For Users, It's Pure Simplicity

The user experience couldn't be more straightforward:

• No hardware required: Access institutional-grade RWA-backed mining power without owning a single ASIC
• Flexible commitments: Start a mining contract for as little as one month or up to five years
• Claim rewards freely: Withdraw mined Bitcoin, Kadena, or Litecoin/Dogecoin whenever and as often as you want

"We're seeing unprecedented interest," Folkard noted. "People who never considered mining due to the high barriers to entry can now participate with full control of their earnings and assets in just a few clicks."

For the Industry, It's Transformative

Chips isn't just decentralizing access; they're creating entirely new financial primitives. The platform currently manages substantial hashrate across multiple algorithms, with all operations currently powered by 100% hydroelectric energy.

"We're not just tokenizing hashrate; we're creating a new asset class," explained Daniel Jones, Chips' COO. "Plans include asset-backed lending against cTokens, automated reinvestment features, and cross-chain yield optimization."

The total value locked (TVL) stands at $106,177 as of July 2025 and is now tracked on DeFiLlama, contributing to Kadena's ecosystem growth. With 96%+ machine uptime and zero customer hardware maintenance costs, Chips’ platform delivers industrial-scale efficiency and profitability for retail participants.

Sustainable Mining via Hydroelectric Energy

Environmental consciousness is core to Chips' mission. "Our entire mining operation is powered by hydroelectric energy," Jones emphasized. This commitment to sustainability addresses one of crypto mining's biggest criticisms while positioning Chips for long-term regulatory compliance.

The platform's referral program and native order book (launching in 2025) will further enhance the ecosystem, creating network effects that benefit all participants.

Kadena: The Right Foundation

Chips chose Kadena for its scalable architecture and Pact smart contract language. "Todd's expertise with Pact, proven through secure smart contracts by processing over 10 million KDA without incident at Kadena Mining Club, made this a natural choice," Folkard said.

With support from Kadena's $50M grant initiative, Chips has completed three major milestones:

• Energy Token Framework (kWATT system)
• Hashrate Mining Contract Framework (cToken contracts)
• Oracle Integration Framework

"Kadena's team understood our vision immediately," added Leach. "Their grant support has been instrumental in building this infrastructure properly from day one."

What's Next

This year, Chips launched on mainnet, allowing users to start mining immediately across multiple algorithms, including Kadena, Bitcoin (SHA-256), and Litecoin/Dogecoin (Scrypt merged mining).

Future developments include:

• Expansion to additional mining algorithms
• Automated rental reinvestment for compound returns
• Direct reward conversion to any Kadena token (x-ecosystem mining rewards compounding)
• Asset-backed lending against cTokens

"We're just getting started," said Folkard. "Our vision extends beyond current mining—we see a future where GPU mining, AI compute, and other computational resources and associated infrastructure are all tokenized and accessible through Chips."

The Bottom Line

For too long, crypto mining has been an exclusive club. Chips is tearing down those walls, making industrial-scale mining accessible to anyone with an internet connection. By combining tokenization, sustainable energy, and Kadena's powerful infrastructure, they're reimagining what mining can be.

To start mining in minutes without the hassle of managing hardware or hosting machines, visit chips.finance.