EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#282

Operations are unable to carry out and smart contracts cannot be deployed.

A switch to a market-based allocation approach rather than the price paid approach.

It should provide more balance over time in terms of supply and demand of RAM allocation.

As more developers for dApps join the RAM will be more expensive. Speculators might push RAM high and expensive for developers. It will also cause a waste of RAM resources.

1 Like
#283
  1. It will stop and not be deployed.
  2. They switched from a price paid protocol to a market based protocol.
  3. RAM staking can be dropped because RAM is scarce.
  4. RAM prices can be adjusted which makes the network more vulnerable.
1 Like
#284

  1. What would happen if a dapp runs out of RAM?
    Stops working.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    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?
    There is incentive to unstake EOS for RAM when the market value for EOS is increasing. This would free up the RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    Market based model for RAM staking include speculation and manipulation. Also, allocation of funds collected through trading fees may need consideration or continuosly burn ROS tokens from the RAM contract to offset inflation.

1 Like
#285

1.) The Dapp will stop running.

2.) Under system 3.0 token holders could only sell there tokens for the price they paid, just as the other resrouces, Now 4.0 has switched to a market-based allocation approach using the Banzor algorithm .

3.)The benefits of a market based model for RAM staking is fair pricing and more effective resource utilization (in theory), reducing hoarding and optimizing price.

4.) The draw backs of a market based model fro 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
#286

  1. What would happen if a dapp runs out of RAM?
    Dapp will not continue working.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    3.0: ram can onle be sold for the price paid before
    4.0: RAM market uses the Bancor algorithm, which is a market maker style system.

  3. What are the benefits or having a market based model for RAM staking?
    Fair pricing and more effective resource utilization (in theory), reducing hoarding and optimizing price.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation hinders development by increasing the costs of RAM for intended use cases.

1 Like
#287
  1. It will stop working.
  2. In Dawn 3 users could only sell tokens for what they paid, dawn 4 lets users sell for whatever the market price is at the time.
  3. It creates an incentive to free up inefficiently used RAM
  4. People can use it for speculation, which is not what it is intended for.
1 Like
#288

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

  2. The introduction of the Bancor algorithm from Dawn 4.0. now invoking a dynamic market based allocation.

  3. The market based model incentives users to unstake RAM to free this memory for other purposes that are needed.

  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.

1 Like
#289

What would happen if a dapp runs out of RAM?
Some operations are unable to finish and smart contracts cannot be deployed

What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
Bancor algorithm - market based

What are the benefits or having a market based model for RAM staking?
If the price of EOS goes up there is a market incentive to unstake EOS which frees up RAM

What are the drawbacks of having a market based model for RAM staking?
The drawback of a market based model is it would likely result in currency speculation

1 Like
#290

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

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

  3. With the market-driven model, developers 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 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.

1 Like
#291
  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, a user can receive capital gain from un-staking his RAM, and therefore willing to free the resources.
  4. As more dApp developers join the market, RAM becomes more expensive. Speculators can also drive the price up.
1 Like
#292

  • What would happen if a dapp runs out of RAM?
    When dapp runs out of RAM, operations cannot be conducted and smart contracts can not be used.

  • 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?
    It discourages a developer from holding onto RAM, thus wasting it.

  • What are the drawbacks of having a market based model for RAM staking?
    As more dapp developers join the community, more RAM is extracted from the market, thus driving the price of RAM up.

1 Like
#293

Reading Assignment: EOS RAM Allocation (Answers)

  1. It would be unable to carry out and smart contracts could not deploy.
  2. Dawn 4.0 system contract now buys and sells RAM allocations at the prevailing price.
  3. With this model you can receive capital gain from un-staking your RAM and therefore willing to free resource.
  4. It makes RAM more expensive.
1 Like
#294
  1. 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. Benefits of having a market based model for RAM staking is efficient RAM allocation where developer can receive capital gain from un-staking RAM and therefore willing to free the resources. Beneficial for the network is the allocation of resources.
  4. RAM will get more and more expensive as more developers join the network.
1 Like
#295

EOS RAM Allocation

  1. What would happen if a dApp runs out of RAM?
    In that case some operations are unable to finish 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 Bancor algorithm has been introduced which means a shift from the pegged pricing model for RAM to a dynamic market based one.

  3. What are the benefits or having a market based model for RAM staking?
    Possible gains incentivize developers to free up unused resources that would otherwise be lost.

  4. What are the drawbacks of having a market based model for RAM staking?
    Increasing numbers of developers as well as irrational/speculative behavior can drive prices too high.

1 Like
#296
  1. What would happen if a dapp runs out of RAM?
    Some operations and smart contracts execution could fail.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 allows you to sell the RAM resources for the price you bought while on 4.0
    you sell it at market price , that could be different.
  3. What are the benefits or having a market based model for RAM staking?
    It will help EOS network to free up resources when RAM is not needed , as it will follow a RAM market price and not just EOS token price.
  4. What are the drawbacks of having a market based model for RAM staking?
    1- as more dApp developers join , the more expensive the RAM as resource allocation is higher
    2- Speculators would increase RAM price
1 Like
#297

  1. Some operations will become unavailable and the smart contract will be unable to be executed.

  2. The RAM allocation model changed from a stacking based model to a market based model, meaning trader could now buy RAM in speculation of it being more scarce tomorrow.

  3. One of the benifits of a market based model is that it incentivses users to sell their RAM shares when they are no longer using the RAM, it also allows speculators the ability to buy RAM now in anticipation of the need for RAM increasing in the future.

  4. As more developers and more data is needed to be stored for a long time, more RAM is extracted out of the market, making RAM more and more expensive.

1 Like
#298
  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. 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?
    benefits is for pair pricing and more effective resource uttilization
  4. 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.
2 Likes
#299
  1. Smart contracts will not deploy and some operations would stop running.
  2. Under Dawn 3.0 system contract, token holders can only sell RAM for the price they paid. Dawn 4.0, uses market driven allocation through Bancor algorithm; a market based allocation with floating price.
  3. Incentive for unstaking ram as price increases reducing hoarding.
  4. Speculation and manipulation/scarcity. Irrational behaviour of speculators on RAM could push RAM prices high, making it expensive for dApp developers to buy resources. As more data is needed for long term storage more RAM is purchased, further increasing price. Producing a waste of RAM resources.
2 Likes
#300

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

  2. Token holders can only sell ram for the price they paid.

  3. Developers or participants are incentivized to unstake or sell their resources for capital gains instead of sitting on them when no incentives were involved.

  4. As there are more and more people on the network using more ram it can cause allocating ram more and more expensive, thus putting the power in the hands of the largest stake holders.

2 Likes
#301

  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?
    Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid, just as other resources. With Dawn 4.0 it is a market based approach utilizing the Bancor algorithm.

  3. What are the benefits or having a market based model for RAM staking?
    You can receive capital gains for un-staking their RAM and freeing up resources.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation can drive up price and make it more expensive to use RAM.

2 Likes