EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#182
  1. What would happen if a dapp runs out of RAM?
    Some operations become unavailable to carry out and smart contracts cannot be deployed.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? The big change in EOS RAM Allocation Model is in EOSIO Dawn 4.0. Under the Dawn 3.0 system contract, token holders can only sell RAM for the paid.
  3. What are the benefits or having a market based model for RAM staking? you always get what you have paid
  4. **What are the drawbacks of having a market based model for RAM staking?**The drawbacks of a market based model for RAM staking include speculation and manipulation. Also, allocation of funds collected through trading fees may need consideration or continuously burn EOS tokens from the RAM contract to offset inflation.
1 Like
#183

1. What would happen if a dapp runs out of RAM?
Operations cannot be carried out and smart contracts cannot be deployed
2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
In Dawn 3.0, RAM holders can only sell their RAM for the price they paid whereas in 4.0, they can sell for the market price
3. What are the benefits or having a market based model for RAM staking?
Holders of RAM are more willing to release their RAM for others to use as there is a capital gain associated with it.
4. What are the drawbacks of having a market based model for RAM staking?
As more dApp developers join, more data needs to be stored for longer so there is less RAM available which makes it more expensive. They could hold onto RAM they donā€™t need or use, pushing the prices up.

1 Like
#184

  • What would happen if a dapp runs out of RAM?
    Some operations will be unable to be carried out and smart contracts cannot be deployed.

  • What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    3.0 token holders could only sell RAM for the price they paid.
    4.0 allowed market-based sale of RAM, meaning the price fluctuates based on demand.

  • What are the benefits or having a market based model for RAM staking?
    The financial gain available for un-staking RAM will incentivize freeing up of un-needed resources (RAM).

  • What are the drawbacks of having a market based model for RAM staking?
    As more dApp developers join, and more data needed to be stored for a long time, more RAM used is extracted out of the market, making RAM more and more expensive.

The speculatorsā€™ irrational behavior on RAM will push RAM high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem.

1 Like
#185
  1. What would happen if a dapp runs out of RAM? They cannot execute and the ecosystem deteriorates
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? 3.0 ā€“ you can only sell RAM for the price you paid; 4.0 uses a market-based allocation approach using Bancor algorithm
  3. What are the benefits or having a market based model for RAM staking? Incentivizes others to sell and free up RAM for others to use
  4. What are the drawbacks of having a market based model for RAM staking? Cost for other users; can impede EOS smart development
1 Like
#186

  1. Some operations are unable to carry out and smart contracts cannot be deployed.

  2. Under the Dawn 3.0, token holders could only sell RAM for the price they paid.
    Dawn 4.0 switched to a market-based allocation approach.

  3. A more balanced pricing in the long term and less hoarders.

  4. Speculatorsā€™ may push the RAM high, making it expensive for dApp developers to buy the resources they need.

1 Like
#187

  1. Some operations Are unable to carry out and smart contracts cannot be deployed

  2. Dawn 3.0 Token holders could only sell RAM for the price they paid, just as the other resources

  3. The exchange rate is pegged to disincentivize hording and speculation as no more Eos can be gained by simply buying and selling RAM

  4. It causes some allocation efficiency problems. As demand increases, it makes RAM more and more expensive. Wastage due to unused RAM as speculators stakes it for future gains.

1 Like
#188

[quote=ā€œfilip, post:1, topic:6436ā€]

  • What would happen if a dapp runs out of RAM?
    Itā€™s operation will be unable to be carried out and thus the smart contract can not be deployed
  • What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 is a pegged based system where what you stake is what you get back while the Dawn 4.0 moves to a market based system
  • What are the benefits or having a market based model for RAM staking?
    It gives Dapp developer an incentives of capital gain to disburse their RAM rather than hodling it should incase there project was not that attractive to the end user.Therefore deliberate holding of RAM will not be atttractive.
  • What are the drawbacks of having a market based model for RAM staking?
    Disorder of speculation that can sometimes lead to highly priced RAM and also more EOS DApp developer will lead to increase demand in RAM which will inturn leads to extracting more RAM out of the market and thus Making it more expensive as well.
1 Like
#189
  1. Dapp stops
  2. Hodler get same price when selling as bought
  3. Incetive to sell RAM when EOS goes up
  4. Inefficiency in RAM allocation for dapps when Eos hodlers hodles the door.
1 Like
#190
  1. When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed
  2. Dawn 4.0 switched to a market-based allocation approach using the Bancor algorithm
  3. RAM is released from incentives to unstake RAM and gain capital. RAM is free for use
  4. price of EOS may go up. This will disincentivize the dev to continue staking and holding RAM
1 Like
#191
  1. What would happen if a dapp runs out of RAM?

Some Dapps operations cannot be performed as well as smart contracts unable to be deployed

  1. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?

In Dawn 3.0, token holders sell RAM at cost price whereas with Dawn 4.0, RAM is sold at market price.

  1. What are the benefits or having a market based model for RAM staking?

Incentivises token holders to release their RAM to realise profit and therefore free up resources for other users.

  1. What are the drawbacks of having a market based model for RAM staking?

May incentivise traders/market makers to create bubbles that will overly pump the price of RAM and therefore make it too expensive for Dapp devs.

1 Like
#192

  1. What would happen if a dapp runs out of RAM?
    Some operations would not not be able to be carried out and smart contracts would not be deployed.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 could only sell RAM for the price that was paid whereas Dawn 4.0 is market based using the Bancor algorithm.

  3. What are the benefits or having a market based model for RAM staking?
    Can unstake if there is unneeded RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    Token holders bear the exchange rate risk. between RAM and EOS.

1 Like
#193
  1. Then the dApps cannot carry out the contract.
  2. on Dawn 3.0 the RAM only could be sold at the same price it was bought, while Dawn 4.0 is market driven.
  3. The benefit comes from un-staking RAM, the owner get some gains for it and frees RAM resource for the other participants.
  4. it can cause speculations and price increase. Also waste of RAM resources if the stakers are not motivated to un-stake and free RAM.
1 Like
#194

  1. When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.

  2. Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid. Dawn 4.0. is a market-based allocation approach using the Bancor algorithm.

  3. The benefits for having a market based model for RAM staking is efficient RAM allocation where a developer can receive capital gain from un-staking his/her RAM, and therefore willing to free the resources.

  4. The drawbacks of having a market based model for RAM staking:

  • RAM is more expensive due to high demand from developers;
  • Irrational price speculation which threats the advancement in network development.
1 Like
#195
  1. When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.
  2. Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid, just as the other resources.EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.
  3. With the market-driven model, users can receive capital gain from un-staking their RAM, and therefore willing to free the resources.
  4. as more dApp developers join, and more data is needed to be stored for a long time, more RAM used is extracted out of the market, making RAM more and more expensive.
    Irrational behavior of speculators on RAM will likely push RAM prices high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem.
1 Like
#196

  1. What would happen if a dapp runs out of RAM?
    When the dApp runs out of RAM, it cannot carry out all of its operations, and smart contracts cannot be deployed.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    In Dawn 3.0, users could sell RAM for the price they paid. In Dawn 4.0, users are charged a 0.5% fee when buying RAM and 0.5% when selling RAM.

  3. What are the benefits or having a market based model for RAM staking?
    Charging fees for RAM staking means users would be more careful and stake when they really need it. This promotes efficient use of the limited 64 GB network RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    RAM becomes more expensive as more dApp developers enter the market; speculators may drive up the price and cause a waste of RAM resources.

#197

A post was split to a new topic: Unstake Ampl from the geyser

#198

  1. some operations used/needed by the dapp would not be carried out and smart contracts could not be deployed

  2. dawn 3.0: token holders can only sell RAM for the price they paid. Problem: there might be lots of unneeded RAM blocked and unsufficient RAM available for new developers/projects
    dawn 4.0: token holders now can sell their RAM at market price, since dawn 4.0 is a so-called market-driven model.

  3. The token holder can finally receive capital gain from un-staking his RAM.

  4. However, also in this model there are problems, such as rising development costs due to speculation. Indeed, taking a look at some recent news, high development costs seem to have become a big problem on EOS.

1 Like
#199

1 When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed

2 Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid, just as the other resources. With Dawn 4.0 EOS switched to a market-based allocation approach using the Bancor algorithm.

3 With the market-driven model, un-staking unused RAM is incentivized, this making the whole system more efficient.

4 As more dApp developers join, RAM could become more and more expensive. The speculatorsā€™ irrational behavior on RAM could push RAM high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem. There could large amount of RAM unused due to the speculation, causing a waste of RAM resources.

1 Like
#200

HI @CSquared

I ll move this topics as it is supposed to be for EOS assignments :slight_smile:

2 Likes
#201

Thanks Gabba. By the way @gabba @ivan @amadeobrands i would like to provide a potential substantial employment opportunity to a suitable developer in the academy. Where can i place the details in the academy?