thats for Dawn 3.0, what about Dawn 4.0?
If you have any more questions, please let us know so we can help you! 
Carlos Z.
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The contract would not be able to deploy
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Dawn 3.0 the Ram priced was fixed and in Dawn 4.0 it became a market allocation based approach
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It incentivized developers to not hodl Ram because of market fluctuations
4.You always get back less tokens then you put in for usage
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*What would happen if a dapp runs out of RAM?
No operations can be carried out and small contracts can thereforenot be deployed.
What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
In Dawn 3.0 the token prices remained unchanged when buying or selling RAM but in Dawn 4.0 price allocation is market based.
What are the benefits or having a market based model for RAM staking?
This motivates the token holder to un-stake and sell their RAM for capital gains when it is no longer in use and at the same time EOS resources are freed.
What are the drawbacks of having a market based model for RAM staking?
- Scarcity of RAM resources leads to a high increase of fees as more DAPP developers join in and store more data for longer lengths of time.
- When speculators behaviour pushes the prices high, the developers stop buying RAM resources and less DAPPs are created. This is harmful to the ecosystem.
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It cannot run without RAM.
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3.0 was fixed and 4.0 is variable pricing model.
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Market based model incentivizes users to sell their staked RAM to free the memory for other purposes.
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Wasted RAM due to speculation. Less developers can afford to get more RAM.
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1.- DAPP will not run
2.- Dawn 3.0 you had to sell RAM for the price you paid, instead on Dawn 4.0 the RAM price became market value
3.- It allows all apps to have access to the same prices
4.- Flat land for speculation and manipulation
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- Some operations are not able to be carried out and smart contracts cannot be deployed
- Dawn 4.0 switched to a market based allocation approach using the Bancor algorithm.
- RAM can be sold for capital gain so no RAM will be wasted.
- RAM can become more expensive due to speculation and manipulation
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- Some dapp operations will fail and smart contracts wonât execute.
- Dawn 3.0-token holders sell RAM for the same price they paid.
Dawn 4.0-use Bancor algorithm that are marked based allocation. - More balanced pricing long term, discourages hoarding.
- Speculators may hold RAM and push prices up while making it unused/wasted for actual dapp use.
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Some operations are unable to carry out and smart contracts cannot be deployed
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Dawn 3.0 token holders can only sell RAM for the price paid
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Selling RAM allocations at prevailing market prices gives incentives to free resources
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Traders buying RAM today in anticipation of potential shortages tomorrow consume resources outside of its intent
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- The contract cannot be deployed on the network.
- 3.0 RAM could only be sold at the purchase price 4.0 RAM sells at market price
- Stops people from hoarding RAM in useless contracts.
- Speculation and manipulation of the market.
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Reading Assignment: EOS RAM Allocation
1. What would happen if a dapp runs out of RAM?
It cannot execute/deploy smart contracts any longer, and are unable to carry out some other operations.
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 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.What are the benefits or having a market based model for RAM staking?
The algorithm ensures that the free market is setting the price, as price fluctuate by the current demand this will protect the network and prevent spamming of available resources in the network.
4.What are the drawbacks of having a market based model for RAM staking?
As the price will fluctuate by the current demand of RAM, so you are not guarantied to get all token back whe n you are done handling the contract. And as more dApp developer joins the more RAM is used the more expensive it becomes to use smart contracts. Due speculation/trading with RAM resources will make it more expensive for dApp developer that can decelerate the development of the EOS ecosystem, and this will also causing wast of scare RAM resources.
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- What would happen if a dapp runs out of RAM?
- some operations are unable to carry 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?
- EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0
- What are the benefits or having a market based model for RAM staking?
- You will not run out. when it getâs more expensive eventually a RAM hoarder will sell.
- What are the drawbacks of having a market based model for RAM staking?
- It can be very expensive when the RAM is in short supply.
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Some operations are unable to carry out and smart contracts cannot be deployed.
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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.
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The upside is to disincentivize hoarding and speculation, as no extra EOS could be gained by merely buying and selling RAM.
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The RAM pricing algorithm creates barriers to entry that limit demand by raising prices as available RAM capacity is reduced. The less amount of RAM is available, the more EOS coins must be staked for the same amount of RAM.
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When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.
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Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid, just as the other resources. Under 4.0 EOS used a market/based allocation system.
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The market-driven model, you can receive capital gain from un-staking your RAM. It give RAM holders more incentive to hold.
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The drawbacks are speculation and manipulation of RAM prices
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- What would happen if a dapp runs out of RAM?
Some operations will not be carried out.
- What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
Tokens staked for RAM were sold at market rate during Dawn 3 but changed to an algorithm for Dawn 4
- What are the benefits or having a market based model for RAM staking?
You have scarcity in RAM. To have RAM people will always stake coins.
- What are the drawbacks of having a market based model for RAM staking?
Itâs very complicated and convoluted.
2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
You mean that at Dawn 3 RAM were sold at market rate? like today you buy at one price and tomorrow is another one? Could you please explain yourself a little bit? Maybe in just confused.
If you have any more questions, please let us know so we can help you!
Carlos Z.
1. What would happen if a dapp runs out of RAM?
The operations of the dapp wouldnât carry out and smart contracts wouldnât be deployed.
2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
Under Dawn 3.0 token holders could only sell RAM at the price that they paid. In Dawn 4.0, it is based on a market based allocation approach using the Bancor algorithm.
3. What are the benefits or having a market based model for RAM staking?
It allows the free market to set the price.
4. What are the drawbacks of having a market based model for RAM staking?
More developers join and use more RAM, driving up its price. The price will also be influenced by the activity of speculators, making it problematic for dApp developers to purchase the resources they need.
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- What would happen if a dapp runs out of RAM?
if the dApp runs out, the smart contractâs operation would not be processed, hence processing will stop. - What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
Dawn 3.0 is where the token holders sell ram for the price they have paid. Dawn 4.0 is a market based allocation, where the token holders are given capital gains when they unstake. - What are the benefits or having a market based model for RAM staking?
Token holders will earn capital gains once they release their allocation or unstake. - What are the drawbacks of having a market based model for RAM staking?
the ram will be more expensive when more dapps join the ram.
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Some operations will not be processed, smart contract will not be deployed - as a result the Dapp will stop running
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Dawn 3.0 had fixed price returns, Dawn 4.0 switched to market price returns using Bancor algorithm.
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The market base model is better as it prevents âwastingâ the unused RAM, as it happened in Dawn 3.0. BAncor algorithm sets the price of RAM, so there is no RAM wasted.
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As dapps are getting more popular, there are more and more developers who build them and use more and more RAM, which is getting more expensive. The speculators take the advantage of it, which push RAM price even higher, thus developers cannot afford it to buy the resources for their dApps.
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- Some Dappâs operations will fail and smart contracts will not be deployed.
- The 3.0. version the users could have sold RAM only for the fixed price they purchased it. The 4.0. version has introduced a market allocation.
- So that people do not waste RAM if they do not develop a Dapp and are incentivize to sell it.
- Speculation.
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1- It stops working
2-D.3 you can sell RAM for the price they paid
D.4 uses market allocation model on Bancor algorithm to establish price
3- May not clog up the RAM usage/space used ( hoarding).
because you may hoard RAM in hopes of eventual capital gains
4- If usage goes up, the price will most likely also (inflation)
and volitility brings in speculators.
So pricing becomes difficult to plan for.
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