EOS RAM Allocation - Reading Assignment

[Agnie]

1. If a DApp runs out of RAM, the smart contract won’t be deployed, as some operations will be stopped.
2. The change was that, under Dawn 3.0, token holders can sell RAM for the price they paid; Dawn 4.0 is based on s market-based allocation approach.
3. Benefits: free market setting the price - incentive; more effective utilisation of the resource.
4. Drawbacks: risk of potential price volatility carried by the participants; potential for speculation.

[ArtCenter1]

• What would happen if a dapp runs out of RAM?
  Some operations might not working
• What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
  It introduced the dynamic RAM market allocation.
• What are the benefits or having a market based model for RAM staking?
  There is incentive to unstake EOS for RAM when price goes up. It optimize the resource utilization.
• What are the drawbacks of having a market based model for RAM staking?
  The drawbacks may be speculation and manipulation.

[JAL]

1.- Some operations are unable to carry out and smart contracts cannot be deployed.
2. Market-based allocation approach using the Bancor Algorithm from Dawn 4.0.
Dawn 3.0 token holders can only sell RAM for the price they paid, just as the other resources
3.- Receive capital gain from un-staking RAM, and therefore willing to free the resources.
4.- As more dApp developers joing RAM become more scared and expensive. Additionally, the speculators’ 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. There is large amount of RAM, due to the speculation or other reasons, are unused, causing a waste of RAM resources.

[johnp]

1. What would happen if a dapp runs out of RAM?
   The smart contract cannot 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 can only sell RAM for the price they paid. Dawn 4.0 uses a market based allocation system to set the price.
3. What are the benefits or having a market based model for RAM staking?
   The market based model provides an incentive to pull unused RAM back into the system.
4. What are the drawbacks of having a market based model for RAM staking?
   Under the market based model, speculators can hold RAM for a price rise at the expense of the developers who need to use it.

[stephenK]

• What would happen if a dapp runs out of RAM?
  When RAM is insufficient for a dApp, 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?
  The change is from pegged exchange rate to a market determined exchange rate.
• What are the benefits or having a market based model for RAM staking?
  A market based model for RAM staking reduces allocation efficiency problems. A fixed model discourages un-staking RAM resources and therefore creates allocation efficiency problems. The market model encourages un-staking by providing capital gain from un-staking which frees resources and improves allocation efficiency .
• What are the drawbacks of having a market based model for RAM staking?
  The drawbacks of having a market based model for RAM is it encourages speculation which means RAM resources will lie idle and cause price to increase. The other drawback is when the price of the token staked decreases the tendency is to hold and not to un-stake at a loss. This means RAM resources are occupied while not in use.

[RCV]

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. You receive capital gain from un-staking RAM, and therefore you are willing to free the resources.
4. 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 speculators’ 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. There is large amount of RAM, due to the speculation or other reasons, are unused, causing a waste of RAM resources.

[JBrewer]

1. What would happen if a dapp runs out of RAM?
   – Storage of application state will require a dApp developer to ensure there is enough RAM until that state is deleted. When RAM is insufficient for a dApp, some operations are unable 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 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?
   – For the older version where the exchange rate is pegged, the upside is to disincentivize hoarding and speculation, as no extra EOS could be gained by merely buying and selling RAM: you always get what you have paid.

However, the lack of market mechanism causes some allocation efficiency problems. There’s no incentive to un-stake RAM. These RAM resources will therefore be wasted as a result of inefficient allocation. With the market-driven model, One can receive capital gain from un-staking his RAM, and therefore willing to free the resources.

4. What are the drawbacks of having a market based model for RAM staking?
   – 1. 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.
5. The speculators’ 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. There is large amount of RAM, due to the speculation or other reasons, are unused, causing a waste of RAM resources.

[ghiasi12reza]

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

2. 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.

3. For the older version where the exchange rate is pegged, the upside is to disincentivize hoarding and speculation, as no extra EOS could be gained by merely buying and selling RAM: you always get what you have paid. the lack of market mechanism causes some allocation efficiency problems.

4. One potential problem is irrational speculators hoarding the EOS Ram and pushing the price up too high. This would be a waste of resources and hurt the EOS ecosystem.

[Gus]

1. As with any program, smart contracts need memory to execute, if they run out of RAM, the smart contract cannot be deployed.
2. Under 3.0 you could sell RAM to the price you paid for it. Thus could lead to a disincentive to sell when prices were lower. In 4.0 RAM is sold at market prices.
3. RAM is another resource that when traded at market prices will find a balance between supply and demand.
4. The market-based model for RAM could incentivize speculation on the RAM market which will also put some noise in the system.

[Nicksta]

1. Some dapp operations are unable to carry out and smart contracts cannot be deployed.
2. Dawn 3.0: Token holders can only sell RAM for the price they paid. This makes price speculation on RAM impossible. Dawn 4.0: Introduction of new Bancor trading algorithm, this algorithm ensures that the free market is setting the price
3. The price of RAM is determined by the supply and demand of RAM
4. Speculation is made possible leading to inefficient use of RAM. Speculators could buy a lot of RAM and not use it while developers need it and can not afford it.

[Nicolas_Cappuccio]

1. What would happen if a dapp runs out of RAM?
   The smart contracts would not be deployed and some operations won’t be confirmed.

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
   The Dawn 3.0 was based on Fixed Price and The Dawn 4.0 is based on variable princing model

3. What are the benefits or having a market based model for RAM staking?
   It can help in allocating RAM more efficiently.

4. What are the drawbacks of having a market based model for RAM staking?
   If EOS dapps get more and more popular, there are lots of dapps deployed and the RAM will be not greatly available and will be very expensive

[javier_ortiz_mir]

1. What would happen if a dapp runs out of RAM?
   When RAM is insufficient for a dApp, some operations are unable 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 price they paid, just as the other resources
   With Dawn 4.0 token holders bear the exchange rate risk between RAM and EOS. When they free the RAM resources in their hand, the EOS tokens they get back generally does not equal to the number they staked.
3. What are the benefits or having a market based model for RAM staking?
4. What are the drawbacks of having a market based model for RAM staking?
   I think I’m not at the level of fully answering these questions, but my understanding is that there is some benefits and drawbacks caused by the introduction of Dawn 4.0, given the facts:
5. total RAM resources of the whole network looks like fixed ad 64GB (cannot be expanded if more nodes come inside the network)?
6. Speculators behavior could push RAM prices higher, stopping the developers from buying the RAM resources they need (Isn’t there like a test network similar to what there is in Ethereum, for developers to tests their dApps?)

[Cryptoshi007]

@filip

• What would happen if a dapp runs out of RAM?
• What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
• What are the benefits or having a market based model for RAM staking?
• What are the drawbacks of having a market based model for RAM staking?

Response:

1. The operations and smart contracts that dapps are trying to run will not be carried out if it runs out of RAM.
2. Going form (Dawn) 3.0 to 4.0, the RAM market incentives were restructured in order to free up RAM that was not being used.
3. Allowing market based structure for staking will force users to un-stake their RAM when the price is higher than what they purchased at in the past. This benefits them financially.
4. A drawback to having a market based model for staking RAM is that not all tokens will be un-staked if the price is significantly higher than what it was when they purchased it. They will trade a portion of it out and leave some staked, even if they no longer need any of the RAM.

[JCrypto]

1. If a dapp runs out of ram then certain operations cannot be carried out such as the insertion of new smart contracts.

2. Under Dawn 3.0, RAM went for a fixed price according to what the token holder paid, under Dawn 4.0 there is a market based allocation

3. Under a market based model there is more better pricing and allocation of resources.

4. A market based model always draws in speculators. There is also the problem of inflation

[Wxdoc]

1. If RAM runs out, a dapp will not be able to carryout its operations, and contracts will not be deployed.

2. RAM market in Dawn 3.0 and 4.0 changed the course of costing of the earlier version (3.0) which was price paid equals price buyback (pegging). Then in Dawn 4.0 is when a market based approach was implemented, where the cost fluctuated.

3. Benefits of market base model for RAM staking, are disincentive to hoarding and speculation, which free up resources and capital gains from un-staking of RAM.

4. Drawbacks of market base model for RAM staking, can be volatility of price, as it gets more expensive for RAM. Causing speculation to impede EOS’ development.

[Adam1]

1. When EOS dapps run out of RAM smart contracts can’t be deployed.

2. In Dawn 3.0 RAM could only be sold for the price you paid. In Dawn 4.0 EOS used a market based allocation approach using the Bancor algorithm.

3. Market based RAM staking is beneficial because resources are freed up easier when the market is determining the profit. I imagine theres less complaints to customer support at EOS as well because who can argue with what the market does.

4. The draw back to market based RAM staking is that the market could tank and you get less for what you staked.

[VanellaVader]

1. If a dapp runs out of ram, smart contracts can not be deployed
2. The price of RAM on EOS went from being equal to its purchase price to being driven by market value
3. Developers would be incentivized to un-stake their ram for capital gains, freeing up resources.
4. Without market fluctuations, there would be no incentive for developers and holders to un-stake their RAM, leading to hoarding and speculation

[dextro]

Reading Assignment: EOS RAM Allocation

@filip

• What would happen if a dapp runs out of RAM?

Some of the operations of the dapp are unable complete and smart contracts cannot be deployed.

@filip

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

The change moved from pegged exchange rate for RAM (meaning users could only sell RAM for the price they paid) to utilizing a system market maker (smart contract) to determine the price of RAM (increasing or decreasing price based on supply and demand).

@filip

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

The market gets to determine the price of RAM based on supply and demand. Assuming demand increases and RAM becomes more expensive, there is an incentive to free up unused RAM and recoup staked EOS.

@filip

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

The market based approach may encourage increased speculation on RAM price which could stifle development by tying up resources that aren’t actually being used and increasing the cost of RAM for developers.

[ChefAbate]

1. If a dApp were to run out of RAM it stop running.
2. The changes between Dawn 3.0 and Dawn 4.0 are allowing the value of staked RAM to float to the market rate of EOS. This a market based allocation approach rather than price paid approach.
3. Benefits of having a market based model for RAM staking are fair pricing and efficient resource utilization.
4. Drawbacks of having a market based model for RAM staking are speculation and manipulation of prices and waste of RAM resources.

[D1alZer0]

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

2. EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.

3. The benefits of a market based model for RAM staking are that it incentivizes users to unstake their EOS when the price is increasing therefore freeing up resources for other users. When the price is going down I think more users would stake their EOS, maybe…

4. The drawbacks to the above are that more developers join the EOSIO, more dapps, more RAM needed, RAM more expensive, and everything else that goes on with market speculation.