EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#322

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 the other resources. You can check more details in Daniel Larimer’s article. 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?
With the market-driven model, a dApp dev 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?
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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#323
  1. If a dapp runs out of RAM, some operations will not be carried out and smart contracts cannot be deployed.
  2. The change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market allows for a market based allocation approach to RAM. It allows for speculation on RAM.
  3. The benefits of having a market based model for RAM staking, the algorithm ensures free market pricing. Further, there is an incentivization to unstake their unused staked RAM.
  4. The drawbacks of having a market based model for RAM staking, is that the algorithm can cause inflation of the price of RAM staking. Speculation and manipulation can drive the price of RAM staking.
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#324
  1. The Dapp will stop running.
  2. In 3.0, you could only sell ram for what you paid. In 4.0, the RAM market switched to using the Bancor algorithm, which is a market maker style system.
  3. It discourages hoarding
  4. Speculators may hold RAM and push prices up.
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#325
  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.

  1. 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 could 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.

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

It creates an incentive to unstake the ram allowing for better allocation efficiency.

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

It may incentivize hoarding and speculation.

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#326
  1. It would stop working , unable to deploy smart contracts.
  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. More efficiency in the allocation of RAM, it gives to the EOS RAM staker incentives to un-stake the non utilized RAM capacity for a fair price.
    4 .Speculation on the Market Price of the cost of RAM capacity and 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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#327

1- What would happen if a dapp runs out of RAM?
It won’t be able to function properly

2- What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
With Dawn 3.0, token holders can only sell at a locked-in price. There is a market adjustment to the token price with Dawn 4.0 and so the price is able to fluctuate.

3- What are the benefits or having a market-based model for RAM staking?
It creates an incentive for token holders to sell their unused tokens and therefore free RAM for other users.

4- What are the drawbacks of having a market-based model for RAM staking?
If the price goes down, people needing to take their funds back out of the ecosystem for any reason may not be able to do so.

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#328

  1. What would happen if a dapp runs out of RAM?
    If a dApp runs out of RAM, some operation may not work 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 can only be sold for the price paid while in Dawn 4.0, a market-based allocation based model was used.

  3. What are the benefits or having a market based model for RAM staking?
    It incentivises RAM holders to unstake their RAM when they no longer use it.

  4. What are the drawbacks of having a market based model for RAM staking?
    As more dApp developers join, more RAM will be extracted from the market (staked). This coupled with speculator’s hoarding RAM to drive prices up may make it expensive for developers to buy the RAM resources they need.

2 Likes
#329
  1. A Dapp will no longer run its operations and the contracts will not be deployed
  2. In Dawn 3.0, you only could sold for the price you paid. In Dawn 4.0, EOS used a market based allocation approach using the Bancor algorithm.
  3. The market based model force to sell their staked RAM to free the memory to other projects.
  4. If a lot of plp hold, the RAM will be not fully available and will be very expensive to buy.
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#330

1. What would happen if a dapp runs out of RAM?
If RAM is unavailable then some operation will not be carried out and Smart contract will not be able to execute.

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
In Dawn 3.0 token holders can onlyo sell RAM for the price they paid, regardless of the token price fluctuation.
in dawn 4.0 EOS switched to a market-based allocation approach using the Bancor algorithm.

3. What are the benefits or having a market based model for RAM staking?
A Market based model for RAM staking will encourage token holders that are running dapps to un-stake their token to free up RAM that’s not being used. Free RAM can be used by other developers to deploy new smart contracts.

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

  • If more developers are joining the EOS network, More RAM will be required to run dapps hence more and more RAM will be extracted out of the market which will Push the RAM price higher.
  • Speculation on higher RAM price will push the RAM price higher by hoarding the RAM and hence it will deteriorate the Network. Most of the RAM will go unused, which will lead to wastage of RAM
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#331
  1. Your DApp will stop running.
  2. Under Dawn 3, RAM could only be sold for the price it was purchased. Under Dawn 4, the RAM could sold at market price.
  3. Incentivizes developers to sell their RAM
  4. People may want to hoard their RAM until they can get an outrageous price.
1 Like
#332

EOS RAM Allocation - Reading Assignment

  1. What would happen if a dapp runs out of RAM?
    In this case transactions will not complete, contracts would not deploy.

  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 their tokens for the price they paid. With Dawn 4.0 EOS system introduced market-based approach to staked token price discovery at the time of un-staking.

  3. What are the benefits or having a market based model for RAM staking?
    The most obvious benefit should be increased efficiency in terms of RAM allocation due to better incentives for EOS token stakers to release their tokens and allow for better allocation of unused RAM. Users, who might require more RAM will have access to it, because anothers sold their tokens at current market rate and hopefully benefited from sale.

  4. What are the drawbacks of having a market based model for RAM staking?
    One could forecast a scenario of a congested network (as it gets more adopted) where market drives the cost of each unit up, up, up due to increased demand. Thus, making each unit much more expensive, driving whole network operating costs much higher. In turn, disincentivizing new participation.

G.

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#333

  1. What would happen if a dapp runs out of RAM?
    Some operations will be unable to carry out and the smart co tract 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 token holders were only able to sell RAM for the price they paid and with Dawn 4.0 they can receive capital gains from unstaking the Ram they acquired, which in Dawn 3.0 they couldn’t.

  3. What are the benefits or having a market based model for RAM staking?
    It incentives Stake holders to unstake to earn more EOS tokens and allows Ram to be freed up for other developers to use it.

  4. What are the drawbacks of having a market based model for RAM staking?
    That the more Ram that is being the more the price of Ram will increase causing it to be more expensive.
    Speculators will push the price of Ram to be expensive making it more expensive for Dapp developers to buy resources they need Thus deteriorating the ecosystem.

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#334
  • Some operations will be unable to carry out and smart contracts won’t be deployed
  • EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.
  • Fair pricing and better balance in terms of supply and demand for RAM allocation.
  • 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, This will cause speculation and will push RAM prices high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem.
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#335

1, some operations will not be able to carry put and smart contract won’t be in use
2, In Dawn 3.0 toke holders would be able to sell RAM for the same price what they paid for it when in Dawn 4.0 you are able to sell it for a higher price
3,
4, expensive

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#336
  1. some operations may not complete and smart contracts cannot deploy
    2 . It gave developers more incentive to un stake their RAM by allowing market mechanisms to set the price
    3.It allows developers to receive capital gain from unused RAM
  2. as demand for RAM grows so does the price so it can become too expensive
1 Like
#337

  1. What would happen if a dapp runs out of RAM?
    some operations will not be able to run and the smart contract can not be executed

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Under DAWN 3.0, tokenholders could only sell RAM for the price they paid. under DAWN 4.0 EOS switched to a market-based allocation approach using the Bancor algorithm

  3. What are the benefits or having a market based model for RAM staking?
    incentivizing to un-stake RAM , that will free up more RAM for developers

  4. What are the drawbacks of having a market based model for RAM staking?
    the market price van drop, leaving you with Less than you started with

2 Likes
#338

.) What would happen if a dapp runs out of RAM?
A.) PURCHASE MORE RAM OR THE DAPP STOP RUNNING. the RAM is purchased. It’s important to calculate how much RAM will be needed for your dApp. This will help you minimize your costs in the first place.

2.) What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
A.) Under the Dawn 3.0 system contract, users could only sell RAM for the price they paid. The team’s goal was to disincentivize hoarding and speculation. The downside to this approach is that those who buy RAM cheaply have no financial incentive to free RAM for other users after it gets more congested. Under Dawn 4.0, the system contract now buys and sells RAM allocations at prevailing market prices. This may result in traders buying RAM today in anticipation of potential shortages tomorrow. Overall this will result in the market balancing the supply and demand for RAM over time.
3.) What are the benefits or having a market based model for RAM staking?
A.) IT PREVENTS HOARDING OF RAM.
4.) What are the drawbacks of having a market based model for RAM staking?
A.)it might case speculation and drive the cost of of ram up. which can result in less adaptation of the platform( less development of new projects, not good for anyone.)

1 Like
#339

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

  2. In Dawn 3.0, token holders could only sell RAM for the price they paid - fixed price. In Dawn 4.0, it became a market-based allocation approach.

  3. The new model prevents allocation efficiency problems by incentivizing un-staking of EOS and thus free up unused RAM.

  4. Such model can be potentially be (price) manipulated or affected by speculators in the market, which create RAM allocation inefficiencies (e.g. price too high for developers) thus leading to barriers in development and affecting the ecosystem.

1 Like
#340

  1. What would happen if a dapp runs out of RAM?
    The contracts can not be executed fully.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Purchasers of RAM could only resell the RAM at the price it was purchased.

  3. What are the benefits or having a market based model for RAM staking?
    This avoids hording of RM.

  4. What are the drawbacks of having a market based model for RAM staking?
    This encourages arbitraging RAM.

1 Like
#341
  1. What would happen if a DApp runs out of RAM?

All the token staked is proportional to he resources allocation -bandwidth and CPU

RAM is a scarcer resource (65 bits of RAM) and is a separate staking contract that the Bandwidth and CPU and is set by the market demand. When no RAM, the DApp will cease

  1. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
  • the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid
  • EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.?
  1. What are the benefits or having a market based model for RAM staking

Avoids Speculation and ensures that RAM will not be held up without it being used

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

Speculation as the Market price may rise and fall and people may spend more or less than they planned to execute their EOS transactions

1 Like