EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#402
  1. Some operations are unable to be carried out and smart contracts cannot be deployed.
  2. Dawn 3.0 - Token holders can sell RAM for the price they paid. Dawn 4.0 - Token holders sell RAM for the market price
  3. It disincentives hoarding of RAM, thus freeing up Supplies
  4. Market-Based prices can drive the price of RAM to where it is unaffordable for dApp developers to use.
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#403

EOS RAM Allocation - Reading Assignment:

Q1: What would happen if a Dapp runs out of RAM?
A: If a Dapp runs out of RAM some operations will be unable to be carried out and smart contracts cannot be deployed.

Q2: What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
A: The change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market is that EOS switched to a market-based allocation approach using the Bancor algorithm.

Q3: What are the benefits of having a market-based model for RAM staking?
A: The benefits of having a market-based model for RAM staking are that the continuous increase of supply can satisfy the future increase in demand for EOS resources.

Q4: What are the drawbacks of having a market-based model for RAM staking?
A: Drawbacks of having a market-based model for RAM staking are that as more Dapp developers join, and more data is 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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#404
  1. it will stop running
  2. in Dawn 3 token holders can exchange RAM for the price they paid. in Dawn 4 the price fluctuates.
  3. reduces hoarding of RAM. and makes the system more efficient as RAM is priced to market.
  4. speculation and manipulation, which will negatively affect actual developers trying to build Dapps
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#405

EOS RAM Allocation

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

  • What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 4 allows the value of EOS staked for RAM to float to the market rate for EOS.

  • What are the benefits or having a market based model for RAM staking?
    There is incentive to un stake EOS for RAM when the market value for EOS is increasing. This would free up RAM. Not sure what happens when market value of EOS is dropping?

  • What are the drawbacks of having a market based model for RAM staking?
    See second part of answer 3 above. Also as RAM is used up RAM prices go up requiring higher staking price to use RAM. This causes inflation in the RAM staking system. Good ole game theory at work. In a market driven model it is hard to predict how the greedy nature of human beings will affect the markets.

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#406
  1. What would happen if a dapp runs out of RAM? it would stop operating correctly, smart contracts would not be executed.
  2. **What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?**Dawn 3.0: you can only sell RAM for the price you paid. Dawn 4.0: created a market-based price.
  3. What are the benefits or having a market based model for RAM staking? Ensure that user would want to sell their unused RAM, when RAM is in high demand from other developers/users.
  4. What are the drawbacks of having a market based model for RAM staking? The price of RAM could be forced up if people buy RAM only with the intention of selling it later when demand is higher.
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#407

  1. If a dapp runs out of RAM, it can become unstable and smart contracts cannot be deployed.

  2. The change from Dawn 3.0 to 4.0 introduced a market-driven RAM allocation model, such that the value of RAM at any one time is based on market demand.

  3. One of the benefits of having a market based model for RAM staking is that it provides an incentive for users to free their resources when they are no longer required.

  4. Among the drawbacks for market based RAM staking are that it can RAM more expensive over time due to demand, and this can lead to speculation which can waste resources.

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#408
  1. If there aren’t enough resources to run a dapp, then the dapp won’t run.
  2. Dawn 3.0 used a static peg for staking RAM (you could withdraw what you staked). Dawn 4.0 made this a market based model.
  3. It incentivizes people to unstake RAM if they no longer need it, thus making the RAM allocation more efficient
  4. People staking EOS for RAM will lose money over time.
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#409

  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 on sell RAM fro the price they paid, just as the other resources and 4.0 switch to a market based allocation approach using the Bancor algorithm from Dawn 4.0.

  3. As no extra EOS could be gained by merely buying and selling RAM: you always get what you have paid. Holders can receive capital gain from un-staking his RAM.

  4. The lack of market mechanism causes some allocation efficiency problems. Price of EOS tokens has raised and there’s no incentive for un-stake RAM.

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#410
  1. What would happen if a dapp runs out of RAM?
    will not function
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Bancor tradng algorithm implemented
  3. What are the benefits or having a market based model for RAM staking?
    market based is efficiency in a capitalist based system…but reality maybe different
  4. What are the drawbacks of having a market based model for RAM staking?
    misallocation based on market incentives
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#411
  1. If a dapp runs out of RAM it cannot operate properly.
  2. In the Dawn 3.0 contract, token holders can only sell RAM for the price they paid. In the 4.0 contract it has switched to a market-based allocation model, the free market is setting the price.
  3. When there is more RAM than needed token holders can un-stake their staked EOS.
  4. As interest in the ecosystem increases, available RAM decreases which drives the value upwards.
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#412

1.)
Smart contracts would not be executed

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.)
It will provide a more predictable and stable market for both RAM speculators and RAM users.

4.)
speculation could drive up the RAM price for developers.

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#413 
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?
	○ With the market-driven model, developers can receive capital gains from un-staking their RAM, and therefore more willing to free their resources.
4. What are the drawbacks of having a market based model for RAM staking?
	○ 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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#414
  1. What would happen if a dapp runs out of RAM?

The operation will not be completed and the Smart Contract’s will not be deployed

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

With Dawn 3.0 you can sell RAM for the price you paid; Dawn 4.0 uses a free market approach in setting the price

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

The was more efficient and freed up RAM resources. Previous system offered no inventor unstake

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

Rising cost of RAM caused by free market will make it more expensive for the dapp developers for their resources and harming their ecosystem

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#415

  1. If dapps would run out of RAM they would simply stop running as they wouldn’t be able to execute new operations.

  2. By introducing Bancor trading algorithm in Dawn 4.0 they created a dynamic market based allocation. Before token holders could only sell for the price they bought.

  3. In theory this benefits are fair pricing and more effective resource utilization reducing roarding and optimizing price.

  4. It inculdes speculation and manipulation.

#416

1- Some operations are unable to run out, and the smart contract can not be deploy.
2- With Dawn 4.0 the system contract now buys and sells RAM allocations at prevailing market prices.
3- The supply and demand of RAM overtime will be balanced.
4- There will be uncertainty on the price of RAM

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#417

  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. 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, somebody with staked RAM that they do not need and others might need, can receive capital gain from un-staking their RAM, and therefore be willing to free the resources.

  4. What are the drawbacks of having a market based model for RAM staking?
    The markets can be unpredictable and even irrational. The market can sell as a group when FUD strikes and make stakes of RAM worth a fraction of what was paid for. The market could alternatively HODL with ‘diamond hands’ and speculate that RAM will ‘moon’, this could send the price up and disincentivize stakers to release their stakes.

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#418

  1. What would happen if a dapp runs out of RAM?
    The dApp will stop working.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    At 3.0 RAM could only be sold for what it was acquired. Now it can be sold for what it is worth right now.

  3. What are the benefits or having a market based model for RAM staking?
    Developers won’t hold on to RAM they don’t need.

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

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#419

  • 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 was that token holders can only sell RAM for the price they paid, just as the other resources.

  • What are the benefits or having a market based model for RAM staking?
    Benefits are that there is no allocation efficiency problems.

  • What are the drawbacks of having a market based model for RAM staking?
    Drawbacks are potential price volatility, possible speculations and that can create a high price for EOS RAM.

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#420

1: The dapp would stop running,

2: 3.0 was cost based and 4.0 is market based. the 3.0 is fixed and 4.0 allows the value to move up and down.

3: More balanced pricing allocated by RAM.

4:As more dapps are developed on the EOS blockchain, it would make RAM more expensive due to the limited nature of RAM itself.

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#421
  1. Without RAM a dapp cannot be deployed.
  2. Dawn 3.0 is not a market based model, so you can only sell RAM for the price you paid originally.
  3. The benefits of market based model is that there is an incentive for unstaking and allocated efficiently.
  4. RAM overtime will become more expensive.
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