EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#442

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

  2. In Dawn 3.0 RAM token holders could only sell RAM for the price (in EOS) they paid. In Dawn 4.0 this is no longer the case (market-based allocation approach).

  3. What are the benefits of having a market based model for RAM staking?
    There is an incentive to unstake RAM because of (potential) capital gains or losses

  4. What are the drawbacks of having a market based model for RAM staking?
    RAM allocation is wasted by speculators, and the volatility of RAM cost might increase

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#443
  1. some operations are unable to carry out and smart contracts cannot be deployed.
  2. under 3.0 token holders can only sell RAM for the price they paid, as on 4.0 it is a market-based allocation.
  3. benefit from the raising in EOS price and reduce hoarding
  4. price speculation over dapp use
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#444
  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. Increased resource allocation efficiency and hoarding of RAM is not incentivised.
  4. Price speculation can artificially inflate RAM costs and as the number of dApps on the platform increases the increasing demands on an already scarce 64GB of RAM can cause price spikes and service limitations.
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#445
  1. What would happen if a dapp runs out of RAM? Stop running
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? Market allocation rather than price paid
  3. What are the benefits or having a market based model for RAM staking?
    should provide a better suppluy and demand of RAM
  4. **What are the drawbacks of having a market based model for RAM staking?**RAM can get expensive and collapse the ecosystem
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#446
  1. Dapps stops running.
  2. 3.0 has fixed pricing and 4.0 allows fluctuation
  3. Should provider better supply
  4. Price can grow too high
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#447
  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. With introduction of Bancor trading algorithm
    EOS switched to a market-based allocation approach (Down 4.0)
  3. What are the benefits or having a market based model for RAM staking?
    It should provide more balance over time in terms of supply and demand of RAM allocation.
  4. What are the drawbacks of having a market based model for RAM staking?
    Speculators may hold RAM and push prices up while making it unused/wasted for actual dapp use.
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#448

  1. If a DApp runs out of RAM it will stop running

  2. The change between Dawn 3.0 and 4.0 in terms of the RAM market was to introduce the Bancor algorithm which allows the RAM staker to trade the market price of RAM instead of just getting back what they paid for it.

  3. The benefit of having this market based model is to stop people holding onto their staked RAM and sell when the market price of EOS is increasing. freeing up RAM for other developers.

  4. The drawback of this is that the price of RAM inflates and becomes more expensive to borrow the amount of RAM required for your project.

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#449
  1. What would happen if a dApp runs out of RAM?
  • DApp state cannot be maintained and operations cannot be carried out.
  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 can only sell RAM for the price they paid, just as the other resources.
    From Dawn 4.0 EOS switched to a market-based allocation approach using the Bancor algorithm.
  1. What are the benefits or having a market based model for RAM staking?
  • Down 4.0 incentivizes the dApp developers to release unused RAM. Also enables market forces to kick in and set the RAM price
    will trickle into the the EOSIO RAM market lowering prices.
  1. What are the drawbacks of having a market based model for RAM staking?
  • RAM could get expensive, speculation opportunities arise
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#450

  1. If a dApp runs out of RAM, part of the dApp operation will be able to carry out and thus cannot deploy smart contracts.

  2. The change was to have the exchange rate for RAM<->EOS be set by the free market in Dawn 4.0. In Dawn 3.0, the exchange rate for RAM<->EOS was set by the system market maker.

  3. Generally, the market-based model allows more efficient allocation of RAM resources. With the price set by the free market, the EOS token holders are incentivized to unstake their RAM for capital gain and allow the RAM resources be allocated to more needed developers.

  4. The better allocation of RAM resources attract more dApp developers to join and need more RAM, which make RAM more expensive. The speculative behavior in the free market on RAM could also drive up RAM price and potentially cause some RAM resources get unused and wasted.

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#451
  1. the dapp will stop working.properly.
  2. Dawn 4 allows the value of EOS staked for RAM to float to the market rate.
  3. it should cause more demand for ram allocation.
    4.one draw back is people speculating on RAM hinders its organic growth through its intended use case.
#452

If a dapp runs out of RAM: Operations will not be carried out. No deployment of smart contracts.

With Dawn 4, the value of EOS staked for RAM floats with market rate (market based) .

More balanced ratio concerning supply and demand of RAM allocation.

More dapp developers = RAM more expensive.
Speculators could push RAM expensive for developers.

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#453
  1. When RAM is insufficient for Some operations of the Dapp hang and can not be excecated. This hinders the deployment of smart contracts
  2. Dawn 3.0 token holders could selll Ram for the price they staked. Dawn 4.0 uses Bancor algorithm trading platform which is market based and it can fluctuate the staking prices either higher or lower than when the tokens were staked.
  3. The market offers incentives to users to free the ram instead of Hoarding
    4.The market based model becomes more expensive to use as more dapps are build on the platform meaning developers may move to cheaper options and abandon eos in the long run
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#454

  1. What would happen if a dapp runs out of RAM?
    Smart contracts may not be deployed. Transactions or operations may cease without completion.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    A revision in the ā€œSell Sideā€ of the R.A.M. transaction to a Market based approach. A Risk of value loss / profit are now part of the Dawn 4.0 protocol.
    Dawn 3.0 = Token holders sell RAM for the same price they paid.
    Dawn 4.0 = Uses a market based allocation predicated on the ā€œBancor Algorithmā€

  3. What are the benefits or having a market based model for RAM staking?
    RAM allocation / resources become subject to the economic forces of supply and demand. RAM resources may be freed up if you can sell it at a small profit - conversely the risk of value loss may also incentivize you to sell RAM resources if the market turns down. RAM, in theory will become more even on the demand side for developers who need the resources.

  4. What are the drawbacks of having a market based model for RAM staking?
    Risk of value loss, market manipulation from speculators hording RAM due to market forces and creating price imbalances. RAM escalating in price forces end user prices to escalate as well. Ecosystem deterioration due to frustration on the developer side.

rjr
2021-05-22T04:00:00Z

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#455

  • What would happen if a dapp runs out of RAM?
    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?
    RAM can be sold back at market price rather than what was paid for originally for RAM.

  • What are the benefits or having a market based model for RAM staking?
    Frees up RAM for developers to use and it keeps people from holding RAM.

  • What are the drawbacks of having a market based model for RAM staking?
    People can hold RAM thinking it may benefit them if RAM price goes up in the future.

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#456
  1. What would happen if a dapp runs out of RAM?
    it will stop
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    In. Dawn 4, staked EOS could be sold at the market price rather than the price paid for.
  3. What are the benefits or having a market based model for RAM staking?
    This would free up RAM when price goes up as there is an incentive to unstake
  4. What are the drawbacks of having a market based model for RAM staking?
    f the price become too expensive and new dApp developers will be discourage to use the system.
1 Like
#457
  1. What would happen if a dapp runs out of RAM?

Some operations canā€™t be executed and the smart contract canā€™t be deployed.

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

Dawn 3.0 was when the exchange rate was fixed for staking and un-staking RAM and that was changed to become variable, based on the market volatility of EOS, for Dawn 4.0.

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

The possibility of capital gains and efficient allocation of RAM resources.

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

The possibility of hoarding and speculation.

#458
  1. The dā€™app would be unable to run.

2.Under the DAWN 3.0 contract system token holders could only sell their RAM and other resources at the price for which they paid for them. The DAWN 4.0 contract used a more dynamic market based allocation system - the Bancor trading algorithm.

  1. A EOS RAM staker is incentivised to unstake unused RAM, which is then available to developers who value it more, eventually creating a fairer price.

  2. Over time as there become more dā€™App developers, more RAM will be used for storage which will be unavailable to the market, consequently increasing the price of RAM.

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#459
  1. The dapp would stop working
  2. With Dawn 3.0, users could only sell RAM for the price they paid. With Dawn 4.0, they can sell RAM for market value
  3. Investors can hodle their RAM and sell when the market reaches a point that they can make a profit.
  4. Investors who hodle RAM are making it more difficult for developers to access it.
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#460

  1. Without RAM the dapp would stop working as some operations wonā€™t be carried out and smart contracts canā€™t be deployed.

  2. The change is that token holders can only sell RAM for the price they paid. Switching to a market-based allocation approach.

  3. The pricing is more balanced long-term and discourages hoarding.

  4. Holding RAM at a time when prices are pushed up without it being utilised is wasted capacity for other dapps.

1 Like
#461
  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?
    Main benefit is that unused RAM can be un-staked, freeing the RAM resources for future allocation to more needed developers.
  4. What are the drawbacks of having a market based model for RAM staking?
    The speculatorsā€™ 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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