EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#462

  1. The smart contract of a dapp cannot be deployed.

  2. Dawn 3.0 the RAM price is fixed ,but under Dawn 4.0 the price of RAM is dynamic.

  3. The benefit of a market driven price for RAM provides a more efficient allocation of RAM .

  4. As the demand for RAM increases ,speculators might push the price higher and become too expensive for developers.

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#463

  1. Smart contracts would not be able to execute.

  2. In 3.0 you could sell your ram for the amount paid for it. In 4.0 you can sell your ram for capital gains.

  3. To give an incentive for developers not using their ram and sell it to free it up for other projects.

  4. With this model there could be a problem of the price of ram being too expensive.

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#464
  1. Operations cannot run properly
  2. EOS changed the model to a market-based allocation, hence incentivizing to free up the locked RAM resources.
  3. incentivizing to free up the locked RAM resources.
  4. The speculation on the price of RAM locks up resources.
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#465

  1. If a dapp on EOS runs out of RAM, it will be unable to execute certain functions and smart contracts will not be processed onto the blockchain.

  2. The Dawn 3.0 market treated RAM as a similar resource to Bandwidth and CPU power. Entities than ran dapps on the EOS network would stake x tokens on the network and be allocated y% of the total RAM resources on the network. When the entity withdrew their stake from the network, they’d retrieve their x tokens equal to their initial stake.
    Dawn 4.0 introduced a separate RAM market to the EOS network where anyone who required RAM on the EOS network was required to effectively purchase a RAM allocation on a separate market by staking EOS tokens. The exchange rate for RAM could move during the time their staking period.

  3. The benefits of having a market based model for RAM staking is that people would no longer hoard unutilised RAM allocations as they see the price of EOS rising. If they know that more resources will be required in the future by dapp developers, they could effectively pump the token price by holding the RAM allocations on the network as new developers join the ecosystem.

  4. While Dawn 4.0 would eliminate hoarders from the ecosystem, it adds an extra element of uncertainty, which could prove to hurt the ecosystem. Now that there is a market for RAM allocation, wild exchange rate fluctuations are commonplace and people who staked a large amount of tokens on one date could receive far fewer on a different day when they unstake. It also means that developers don’t know how many tokens they need to stake for their RAM allocation. If the price for ram increases significantly out of the blue, the dapp could run out of resources and stop working. This uncertainty has been harmful to the growth of the EOS ecosystem and changes are being looked into.

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#466

1.- The Ram sits unused and therefore “wasted”
2.- It made supply and demand (market) “regulate” price
3.- There is a sense of regulation from the principal market and sub-market - Supply and demand but there is risk from both ends for it to go up and down, incentivizing captial gain to let go the Ram.
4.- Price volatility.

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#467

Looks good! Like the 4th point.

#468

1 - If a dapp runs out of RAM, contract operations stop and none of the previously executed operations are committed.

2 - The change between Dawn 3.0 and 4.0 is that RAM users now will get market price when releasing RAM, as opposed to the price originally paid.

3 - The benefits of a market model for RAM is that resources should go to the best usage, balancing supply and demand (reduce hoarding as prices are going up).

4 - The drawbacks of having a market based model for RAM is that this may lead to speculative trading if RAM prices are increasing.

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#469

1.Some operations will not be carried out and smart contracts would not deploy.
2.Fixed vs variable pricing model.
3 .more balanced pricing long term, discourages hoarding
4.More users may drive up the prices or RAM due to scarcity

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#470

  1. If a dapp runs out of RAM some operations will not be executed & smart contracts will not be
    deployed. DApp developers need RAM for the development - storage of application state till the
    state is deleted - RAM is needed.

  2. Dawn 3.0 system contract enabled holders to sell RAM for the price they paid only (just as
    bandwith & CPU), meanwhile Dawn 4.0. system contract enables holders to sell RAM at a market
    price using the Bancor algorithm.

  3. Efficiency. A market based model of RAM staking incetivises holders to unstake their RAM &
    receive capital gain. Resources of RAM are now available to others.

  4. Drawbacks of having a market based model of RAM staking are in case the RAM price is high &
    expensive for DApp developers what deterioreates the ecosystem. Large amount of unsued RAM
    (due to e.g. speculation) cause a waste of RAM resources.

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#471
  1. Smart contracts can not be deplyed
  2. It switched to a market based approch
  3. An incentive to unstake RAM
  4. Less RAM available to stake and the speculatoors driving up the price or RAM could even stop DApp development because its cost prohibitive.
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#472

The app will not function, some operations won’t be processed and smart contracts not deployed.

Went to a market based pricing system instead of fixed price to selling RAM.

Holders can receive capital gains from un staking RAM and freeing up more for the market.

It could cause speculation and hoarding.

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#473

1. What would happen if a dapp runs out of RAM?
Some operations cannot be carried out and the smart contract cannot be deployed, basically, your DApp will not work

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 only sell RAM for the price they paid (no incentive to hold or buy and sell RAM). In Dawn 4.0 it is a market-based approach based on the Bancor algorithm

3. What are the benefits of having a market-based model for RAM staking?
A developer can hoard RAM, and stake as much as he can, hoping for the price to go up then he un-stakes

4. What are the drawbacks of having a market-based model for RAM staking?
Hoarding can be a big problem, RAM prices may fluctuate too much disincentivizing development of DApps because cost is uncertain

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#474

  1. If a dapp were to run out of RAM some operations would be unable to carry out and smart contracts cannot be deployed.

  2. The big change between Dawn 3.0 and Dawn 4.0 in terms of having a RAM market is token holders can only sell RAM for the price they paid, just as the other resources.

  3. The benefits of having a market based model for RAM staking is disincentivize hoarding and speculation. As no extra EOS could be gained by merely buying and selling RAM, you always get what you paid for.

  4. The drawbacks of having a market based model for RAM staking is some allocation efficiency problems.

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#475

  1. If a dapp runs out of RAM, certain operations cannot be performed and smart contracts cannot be deployed.

  2. In terms of the RAM market, the change between Dawn 3.0 and Dawn 4.0 was a market-based allocation approach using the Bancor algorithm from Dawn 4.0.

  3. Having a market based model for RAM staking disincentivizes hoarding and speculation. You always get what you paid.

  4. However, a particular drawback is that the lack of market mechanism causes allocation efficiency problems.

Thanks!

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#476

What would happen if a dapp runs out of RAM?

If a dapp runs out of RAM, it means that some operations will not be able to be executed and smart contracts will not be deployed.

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

The change between Dawn 3.0 and Dawn 4.0 meant that token holders are now able to sell RAM on a market based price. During Dawn 3.0 they could sell their RAM at the price they paid.

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

The main benefit is to disincentive the un-usage of RAM and only hold the RAM you need.

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

Some of the drawbacks are:

  • As more developers join, more RAM is needed. Therefore, more expensive it gets
  • Some might hold RAM resources without needing it, on a speculative behavior.
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#477

  1. What would happen if a dapp runs out of RAM?
    If a dApp runs out of memory it will not be able to execute all of the operations of the smart contract and the transaction will ultimately fail.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    In Dawn 3.0 token hokders could not see their tokens for a profit; the EOS token purchase and sale prices were pegged. In Dawn 4.0, however, the price of RAM is determined by the market.

  3. What are the benefits of having a market based model for RAM staking?
    A benefit of having a market based model for RAM staking is that it acts as an discentive for holders to stake tokens and, therefore, block RAM resources given the potential risks of losing the money they invested in purchasing the tokens. The idea is that token prices fluctuate given the supply-and-demand of the dApps requiring EOS network RAM resources without the external pressure of speculative toekn investors.

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

One drawback of having a market based model for RAM staking is the increade of RAM prices as more and more dApp developers join the netework. A greater number of dApps will occupy a greater percentage of RAM resources, driving up the price of RAM. Another drawback can come from speculator investors who purchase EOS RAM with no intention of using the resource in the hopes of making profit from future sales. This blocks RAM resources needed by dApps and ultimately increases RAM prices due to a reduced supply.

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#478
  1. What would happen if a dapp runs out of RAM?
    certain dapp operation will cease and therefore the smart contract will not function
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Switched to market base pricing
  3. What are the benefits or having a market based model for RAM staking?
    supply and demand will provide balance in allocation
  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation , price increase
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#479
  1. Some of the operations won’t be able to compete and smart contracts cannot be deployed
  2. 3.0 could only be sold for what you paid for the RAM. 4.0 created an open market for the RAM
    3.it incentivises holds to sell their ram for the capital gains
    4.Price of RAM can be manipulated making it harder for dapps to develop programs
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#480
  1. What would happen if a dapp runs out of RAM?
    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?
    Before the price of RAM was fixed. You got back what you paid for it. Now it’s market based and the price of RAM goes up and down.
  3. What are the benefits or having a market based model for RAM staking?
    It will benefit holders of staked RAM to unstake their RAM when their is a financial gain available and free up those resources.
  4. What are the drawbacks of having a market based model for RAM staking?
    The price of RAM will get more expensive as more users demand the resource.
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#481

EOS RAM Allocation - Reading Assignment

  1. Traditionally RAM is used to hold active data for a short period of time. In EOS its used a bit differently simply put, it is all the resources used except CPU and bandwidth in EOS. When RAM is insufficient for a DApp, some operations may not execute and smart contracts cannot be deployed.

  2. Under Dawn 3.0 systems contract, token holders could only sell RAM for price they paid. Under Dawn 4.0 EOS was switched to a market-based allocation approach utilizing the
    Bancor algorithm.

  3. The benefits of having a market-based model resides in fixing allocation efficiency issues. In Dawn 3.0 a user could create a Dapp and stake EOS tokens to allocate RAM to their DApp. In the event their product was incompetent and or abandon the developer had no incentive to unstake their tokens even when the price of EOS tokens are on the rise since, under 3.0 your only paid your original purchase price. Under Dawn 4.0 this same user is now financially incentivized to unstake their tokens allocating RAM to their failed Dapp, freeing up wasted RAM resources on the network. Correcting the RAM allocation efficiency issues.

  4. The drawbacks of a market based model for RAM staking is potential price volatility

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