EOS RAM Allocation - Reading Assignment

1.What would happen if a dapp runs out of RAM? A: It will not deploy, or not run.

2.What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? A: 1st the RAM price was fixed, then the 2nd RAM is priced by the market offer-demand decisions.

3.What are the benefits or having a market based model for RAM staking? A: Non used dApps/Unused-resources are incentivised to free up RAM.

4.What are the drawbacks of having a market based model for RAM staking? A: RAM becomes a speculative asset and developers will have now to pay market-price to have RAM to develop and test new dApps in EOS production environment.

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  1. What would happen if a dapp runs out of RAM?
    Stops executing, running, deploying.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Switch to market-based allocation of RAM via Bancor algorithm, from sell RAM at the price you bought.

  3. What are the benefits or having a market based model for RAM staking?
    RAM sub-market/ market-driven. Maybe open to speculation&hoarding that is now possible with market-maker but stakers get capital gains from unstaking and freeing-up RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation and hoarding, unused RAM.
    Flood of DApps can lower available RAM on the market. (of the 64GB RAM)

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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?

  • In Dawn 3.0 token holders can only sell RAM for the price they paid. In Dawn 4.0, instead, EOS switched to a market-based allocation approach.

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

  • When a smart contract is deployed tokens and resources (in EOS) are staked for a fixed price and allocated. Freeing the resources would mean no extra gain as they sell the resources for they price they paid, but in a market based allocation approach, freeing the resources would result in capital gains as the prices might have increased.

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

  • As more dapps join resources will become more and more expensive.
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  1. What would happen if a dapp runs out of RAM?

The dApp won’t be able to execute smart contracts and some functions may not work.

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

The major change in 4.0 in that EOS Ram is now sold at the market rate. In Dawn 3.0, you had to sell it at the price you bought it.

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

It allows for a more efficient allocation of EOS Ram.

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

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.

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  1. What would happen if a dapp runs out of RAM?
    The dapp would not be able to complete certain operation same like ethereum smart contract if not enough gas is paid.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 token holders can only sell RAM for the price they paid, just as the other resources whereas for Dawn 4.0 market-based allocation approach using the Bancor algorithm.
  3. What are the benefits or having a market based model for RAM staking?
    This incentives the unstake EOS RAM when the market value fro EOS is increasing. This would free up RAM.
  4. What are the drawbacks of having a market based model for RAM staking?
    As more dapps developed on EOS blockchain, it would make RAM more expensive due to the limited nature of RAM.
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  1. Some operations cannot be carried out, and, that causes some contracts to not deploy.
  2. It switched to a market-based allocation approach.
  3. Better efficiency through incentive to sell.
  4. More RAM extracted from the open market, pushing prices higher.
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  1. What would happen if a dapp runs out of RAM?
    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.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, users can receive capital gain from un-staking their RAM, and therefore willing to free the resources.

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

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

Ans : 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?

Ans : Bancor algorithm was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market.

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

Ans : With the market-driven model, users can receive capital gain from un-staking their RAM, and therefore willing to free the resources.

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

Ans : As more dapps join resources will become more and more expensive.

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  1. What would happen if a dapp runs out of RAM? 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. Dawn 4.0 gives a market-driven price to RAM that can incentivize un-staking. This can make allocation of RAM more efficient.
  3. What are the benefits of 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? Speculators can drive the price of RAM up that would have the opposite effect (as above) of inefficiently allocating this resource.
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  1. What would happen if a dapp runs out of RAM? The dApp wouldn’t 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 sell RAM for the same price they paid, instead in Dawn 4.0 the Bancor algorithm is used with a market driven allocation.
  3. What are the benefits or having a market based model for RAM staking? The market based model incentivizes users to sell their staked RAM because if RAM is needed to others its price grows up.
  4. What are the drawbacks of having a market based model for RAM staking? It would make RAM more expensive due to the limited nature of RAM; this fact is a limit when the number of dApps will grow up or someone will decide to speculate on its value.
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  1. What would happen if a dapp runs out of RAM?
    some tasks will not be executed and the contract cannot be deployed on the blockchain

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    In Dawn3.0 RAM owners get what they paid for the RAM they owned when they sell it. In Dawn4.0 this is changed and 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?
    If the prices of RAM can go up, people will be incentivised to unstake RAM if their dapp is not used anymore. This way, RAM will not be wasted

  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

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One. If it runs out of the ram some operations will fail and smart contracts will not deploy.

Two. In 3.0 token holders received the same amount of tokens staked back when they were done. In 4.0 EOS change to the market based model where there is a lot of speculation.

Three. Users have incentives of capital gains when they unstake their tokens, therefore freeing up resources.

Four. As more developers join less resources are available so price of RAM goes up. Due to price speculation a lot of ram is getting wasted.

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1. What would happen if a dapp runs out of RAM?
It would stop operating.

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
In Dawn 4.0 the amount of EOS returned to the staker is adjusted based on the market RAM rate rather than the returned amount of ram being the same amount which is staked as was the case in Dawn 3.0.

3. What are the benefits or having a market based model for RAM staking?
Pricing is more fair and adjusted based on market conditions.

4. What are the drawbacks of having a market based model for RAM staking?
People may stake EOS for RAM and not use it, thinking that the RAM cost will be increasing which would mean they could make a profit when they return their stake. This wastes the available resources.

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  1. What would happen if a dapp runs out of RAM?
    It would fail to execute.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    The amount of RAM returned is equal to the open market value of RAM, rather than being the same amount staked originally in Dawn 3.0

  3. What are the benefits or having a market based model for RAM staking?
    Users will have an incentive to pull out their stake to be able to benefit from appreciation in value of the staked EOS.

  4. What are the drawbacks of having a market based model for RAM staking?
    RAM will get wasted due to speculation. This could hinder development on the platform as executing dApps will become too costly.

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  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 between Dawn 3.0 and 4.0 in terms of the RAM market is that in 3.0 holders can only sell RAM for the price they paid and 4.0 switches to a market-based allocation.
  3. The benefits of a market based mode for RAM staking is that holders can receive a capital gain from un-staking RAM and free the resources.
  4. The drawbacks of a market based mode for RAM staking is it incentivizes hoarding and speculation.
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  1. Operations are unable to carry out and smart contracts cannot be deployed.
  2. In Dawn 3.0 token holders can only sell RAM for the price they paid, in Dawn 4.0 they use market-based allocation approach using the Bancor algorithm.
  3. Free market price
  4. As the network and numbers of app increases the RAM becomes more expansive
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  1. What would happen if a dapp runs out of RAM?
    It would not be possible to save the application state and the dapp as the result the smart contracts would fail.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Under the Dawn 3.0 the buy and sell price of RAM was the same while in Dawn 4.0 it is market driven.
  3. What are the benefits or having a market based model for RAM staking?
    If a dapp is unsuccessful the developer would remove it and sell the RAM instead of holding the RAM resources for no reason.
  4. What are the drawbacks of having a market based model for RAM staking?
    It is causing speculation and driving up the prices. Less developers can actually afford to get RAM.
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  1. What would happen if a dapp runs out of RAM?

Some operations are unable to be carried out

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

Change was a move to market based model when exiting a position in RAM as opposed to simply getting your initial stake back (minus fees).

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

Incentivizes efficient allocation of RAM; Price rises and falls with market demand

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

Incentivizes hoarding in periods of rising EOS pricing and speculation

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  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) .

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  1. What would happen if a dapp runs out of RAM?
    Dapp will stop running

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    3.0: RAM have to sold for the same price as they paid
    4.0: Market based allocation

  3. What are the benefits or having a market based model for RAM staking?
    More balanced pricing ans reducing hoarding RAM allocation

  4. What are the drawbacks of having a market based model for RAM staking?
    No incentive for developers to withdraw their stake

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