Does the EChip wear out? No. The electronic pulse of the EChip is generated by the agitation of a special ceramic crystal inside the EChip Tube. It needs no batteries and does not wear out. If the EChip is dropped sometimes the insulator between the two metal ends will crack and leak water. If the EChip rattles it is working. If it does not rattle it is not working and should be replaced. How does the EChip work? As a lure or attractor shakes or wiggles in the water, the movement of ball inside the EChip agitates the crystal. Tiny electric pulses are discharged into the water. These pulses exactly duplicate the electric nerve discharge of a wounded baitfish. Predator fish can sense this pulse as coming from a live bait and will attack instead of turn away at the last instant. Predators also use the nerve pulses to guide them to the exact position of the bait as they attack