EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#302
  1. dApp will stop running
  2. Dawn 3.0 --> only possible to sell RAM at the price you paid; Dawn 4.0 --> market price allocation approach
  3. that RAM will not be wasted as a result of inefficient allocation (and not gaining anything if you unstake your RAM)
  4. RAM could get more expensive; speculation and manipulation could be a side effect as well
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#303

  • 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?
    Under Dawn 3.0 you had to sell your RAM tokens at the same price that you bought them for. Under Dawn 4.0 the price fluctuates per market demand.

  • What are the benefits or having a market based model for RAM staking?
    The market based system creates an incentive to sell.

  • What are the drawbacks of having a market based model for RAM staking?
    You could experience hoarding or speculation on the network.

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#304

Dapp will stop will fail

Fixed vs variable pricing model.

more balanced pricing long term, discourages to un-stake

More users may drive up the prices or RAM due to scarcity

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#305

  1. If dapp runs out of RAM, there is no resources for dapp to complete its operation and therefore smart contract can’t be executed.

  2. In Dawn 3.0 user could sell RAM for the price they paid. Whereas in Dawn 4.0 user can sell RAM for the RAM market price - price is driven by the RAM market and is not influenced by the EOS token market.

  3. It gives incentives for people to efficiently allocate the resources - if you don’t need RAM, you sell it and free it for some other user who could need it. There is less room for speculators due to the Bancor Relay and its component which reduce the volatility. Which in my opinion still does not solve speculation completely, however also some fees for hodling RAM could help it as well.

  4. Speculators can join the RAM market and can push the price high so it will be hard for developers to get some RAM.

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#306

  1. What would happen if a dapp runs out of RAM?
    When there is not enough RAM the smart contract execution cannot be deployed and operations will cease to run.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    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. What are the benefits or having a market based model for RAM staking?
    It is more effective utilisation of resources as a market based model incentivises users to sell their RAM shares if they are not using the RAM, and allows speculators the ability to buy RAM at the current price in anticipation of the price increasing in the future.

  4. What are the drawbacks of having a market based model for RAM staking?
    As more developers join the EOS network, the RAM becomes more expensive as it is a scarce resource and speculators drive the RAM price higher

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#307
  1. What would happen if a dapp runs out of RAM?

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

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

bancor trading algorithm with dynamic market on 4.0.

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

When the market goes up, unused eos will be unstaked to sell or trade, freeing up more ram for daps.

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

Speculation and manipulation can drive prices up (or down) .

1 Like
#308
  1. What would happen if a dapp runs out of RAM?

Operations would fail and smart contracts would not be deployed.

  1. 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 their ram for the price they paid,(fixed price), whereas D 4.0 Bancor algorithm that is market-based allocation.

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

The developer could receive capital gains from his/her efforts in the market-based model.

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

It could theoretically incentivize hoarding and speculation, strong textRAM could be more and more expensive while more dApp developers join.

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#309

1.- The dapp will stop running.
2.- Token holder could only sell ram for the price they paid.
3.- Incentive for staking.
4.- You cant delegate ram.

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#310

  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, on the other hand with Dawn 4.0 token holders have to pay a fee to unstake their tokens and sell them to free-market price.

  3. What are the benefits or having a market based model for RAM staking?
    The upside is to disincentivize hoarding and speculation, as no extra EOS could be gained by merely buying and selling RAM

  4. What are the drawbacks of having a market based model for RAM staking?
    More RAM used is extracted out of the market, making RAM more and more expensive.
    There is a large amount of RAM, due to speculation or other reasons, is unused, causing a waste of RAM resources.

2 Likes
#311

EOS RAM Allocation - Reading

  1. If a DApp runs out, the operation of the DApp will stop and it smart contract cannot be deployed.

  2. The difference between DAWN3.0 and Dawn4.0 is that, with Dawn3.0 the token holders can only sell for the price paid initially. On the other hand, DAWN4.0 is a market driven - demand and supply determine the Price.

  3. The benefits of having a market based model RAM staking are:

  • efficient allocation of RAM
  • incentives to participate, driven by high prices in buying and selling
  • freeing up of RAM resources to be used by developers
  • create a sub-market for trading RAMs
  1. The draw-backs of having a market based model RAM staking are:
  • Volatility in the market
  • deterioration of the ecosystem if markets prices are high
  • wastage of RAM resources as a result of price speculation
  • increase in hoarding of RAM for better price
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#312

EosIO, the contract and transaction layer of the Eos ecosystem has an economic model somewhat similar EThereum with some MAJOR differences. RAM is the most intricate part of the model, which is the caching needed for the computing power necessary to facilitate transactions. If a Dapp runs out of RAM, its like running out of gas and some parts of the transaction will fail to execute. Dawn 3’s Eos staking protocol led to disincentivizing people to unstake EOS for RAM not being used, however Dawn 4 brings in a market based concept, whereby stakers are incentivized by market prices to extract their capital from RAM staking by unstaking it. Thus the benefit is realized by having more efficient use of the system RAM, currently set at 64GB. However, the ability to speculate on EOS and thus RAM, does bring about the drawback that something will need to be done to prevent the Hodler speculation which could, yet again bloat the system with the need for more and more (underutilized) RAM resources being required.

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#313

  1. If a dapp runs out of RAM, the smart dapp will stop running and contracts can not be deployed.

  2. The difference between EOSIO Dawn 3.0 and 4.0 is that in 4.0 the price on staked tokens is now allowed to track market value.

  3. The benefits of having a market based model for staking are the feasibility of un-staking if you don’t need resources, thus freeing up those resources on the network from instances of inefficient allocation.

  4. The drawbacks of having a market-based model for RAM staking are hoarding of RAM and investor speculation on the network.

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#314

  1. If a dapp runs out of RAM, certain operations will not be run and smart contracts will not be deployed.

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

  3. The market-based approach incentivizes people to unstake RAM in order to receive capital gain.

  4. As more developers join and more data is needed to be stored, the price of RAM will go up due to greater use. Also, those speculating on RAM will also push the price higher and make it more expensive for developers to get the resources they need.

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#315
  1. When RAM is insufficient for a dApp, some operations are unable to be carried 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 RAM, and therefore will be more willing to free up 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.
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#316
  1. Operations would stop.
  2. Under Dawn 3.0 token holders can sell RAM only at the price the bought. Under Dawn 4.0. is a market-based approach using the Bancor algorithm.
  3. A market based model incentivizes to free-up idle RAM.
  4. A market based model also gives grounds for speculation.
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#317

  1. If a dApp on EOS runs out of RAM, then some operations will be unable to execute, and contracts will not be able to be deployed.

  2. In the Dawn 3.0 market, token holders could only sell RAM at the same price as they paid. However, this could have resulted in inefficient resource allocation, where token holders would hold onto their token purchases once they saw the token rise in price.
    In the Dawn 4.0 market, the Bancor Relay Algorithm is used, to ensure that the free market sets the price of the token.

  3. The benefits of a market-based model for RAM staking is that token holders can un-stake their token in order to “cash out” and free up RAM in the network for other dApp developers.

  4. The drawbacks of a market-based model for RAM staking is the ever-increasing need for RAM as more developers join the network, and the ever-present speculators of any and every economic market, potentially pushing the prices of RAM high with irrational behaviour.

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#318
  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. There are incentives for un-staking bad dapps;
  4. 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.
1 Like
#319

[quote=“filip, post:1, topic:6436”]

  • What would happen if a dapp runs out of RAM?
    When RAM is insufficient for a dApp, some operations are 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?
    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.

  • What are the benefits or having a market based model for RAM staking?
    When there is more RAM than needed, token holders can un-stake their staked EOS from the system (and pay a 0.5% fee for this action), freeing the RAM resources for future allocation to more needed developers.

  • 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.

2)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.

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#320
  1. Dapp will stop running.
  2. Dawn 4 allows the value of EOS staked for RAM to float to the market rate for EOS.
    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.People can hold ram and speculate it’s future price when they don’t even need it.
1 Like
#321
  1. What would happen if a dapp runs out of RAM?
    If a dApp runs out of RAM then some 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?
    A switch to a market-based allocation approach instead of a fixed rate.
  3. What are the benefits or having a market based model for RAM staking?
    Provides a more efficient allocation, participants could receive capital gain from un-staking so may be willing to do so.
  4. What are the drawbacks of having a market based model for RAM staking?
    Increased demand will make it more expensive, there could also be speculation which may drive prices higher, making it more and more expensive.
1 Like