EOS RAM Allocation - Reading Assignment

[charlesleonp]

1. What would happen if a dapp runs out of RAM? Some operations would be unable to carry out and smart contracts could not 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 sell RAM for the price they paid. Under Dawn 4.0 there is a market-based allocation approach using the Bancor algorithm.

3. What are the benefits of having a market based model for RAM staking? If you stake your EOS tokens and the market price goes up, and you don’t need the RAM, you can make gains by un-staking your tokens. It makes the allocation of RAM more efficient as it incentivizes those that do not need RAM to un-stake EOS tying up RAM resources.

4. What are the drawbacks of having a market based model for RAM staking? As a greater number of dApp developers join, more data will be needed to be stored for a longer period. This will increase RAM requirements within the market making RAM more expensive. Also, if the market price of your tokens go down, after un-staking, you will have a loss.

[godi]

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. The Dawn 4.0 system is a market-based approach using the Bancor algorithm.

3. What are the benefits or having a market based model for RAM staking?
   More efficient allocation of resources to dapps that have the highest financial gain.

4. What are the drawbacks of having a market based model for RAM staking?
   Price volatility due to people’s expectation of EOS’ future or disorder of market speculation.

[Aida1]

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 Dawn 3.0 system contract, token holders can only sell RAM for the price they paid. And Dawn 4.0 market-based allocation approach using the Bancor algorithm.

3. What are the benefits of having a market based model for RAM staking?
   You can receive capital gain when the demand and the market is going up.

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

[gregD]

1. If a dapp runs out of RAM, smart contracts can no longer be deployed.

2. In Dawn 3.0 you could only sell RAM for the price you paid. In Dawn 4.0 EOS adopted a market based model for RAM staking.

3. The main benefit of having a market based model for RAM staking is people are incentivised to unstake their RAM if their dapp is no longer really being used, as they will have made a capital gain if the price of EOS has risen.

4. The disadvantage of a market based model is people may try to hoard RAM as they speculate the price may go up in the future.

[deniselbs]

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?
With the Dawn 3.0 you could only sell the RAM to the price you have bought it for, with Dawn 4.0 you can sell it to the market price

3. What are the benefits or having a market based model for RAM staking?
With the market-driven model, user receive capital gain from un-staking RAM, and therefore willing to free the resources.

4. What are the drawbacks of having a market based model for RAM staking?
RAM goes up in price the more and more dApp developer join. When the RAM price decreases you could end up with a loss.

[William_Kuang]

1. Some operations aren’t executed and smart contracts cannot be deployed.

2. The price that users can sell their RAM is not locked to the price they bought it for, but at a market price, a price dictated by the market demand/supply of EOS RAM.

3. The market model disincentivizes people to stop hoarding RAM as no additional EOS could be gained by holding unused RAM for arbitrage purposes. Since people can unstake and sell their RAM for selling EOS at a profit.

4. EOS RAM might be hoarded by those who think EOS price would rise in the near future.

[C.Higbee]

1. What would happen if a dapp runs out of RAM? It stops functioning and operations will not be executed.
2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? it went to pegged pricing to open market pricing
3. What are the benefits or having a market based model for RAM staking? Frees up RAM and now makes it more profitable
4. What are the drawbacks of having a market based model for RAM staking? RAM might be held on price speculation and not being used for what it is needed for

[Alex_13]

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

Due to the lack of access to RAM, the dApp would be unable to execute certain operations and smart contracts cannot be deployed either.

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

Under Dawn 3.0, the RAM market allowed a user to convert RAM back to the number of tokens the user initially staked. Under Dawn 4.0, the market for RAM switched to a market-based approach for RAM allocation, which effectively introduced a flexible EOS-RAM exchange rate.

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

A market-based approach incentivizes users to not hold on to unused RAM, especially during times of high demand for RAM, since should it be indeed the case that there is temporarily high demand for RAM, the price for RAM will increase and the user can un-stake his RAM and make a profit from this deal.

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

-A market-based model attracts individuals that try to make profit with speculative trades of RAM. The unwillingness to realize losses or the hope to make greater gains could cause the situation that a speculator will hold on to RAM resources until he can sell the resources at a (higher) profit. This locks up network resources for the pure sake of speculation.

-The more network traffic is generated, the higher the demand and consequently the price for the resources will be. This could cause a situation where individual dApps have to limit network traffic because they cannot buy the resources necessary to execute all the transactions that is caused by the users of the dApp. This would have a deteriorating effect on the whole ecosystem.

[Damedius]

1)Some operations are unable to carry out and smart contracts cannot be deployed.

2)Switching from only being able to sell RAM for the price they paid to a market bases allocation approach.

3)It incentivizes people to unstake RAM that they no longer need.

4)Potential price volatility.

[jude]

1. If a dapp runs out of RAM, then a contract is not 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. One benefit of having a market based model for RAM staking is the incentive to un-stake EOS (and free RAM) when the price of the token increases.
4. One drawback of having a market-based model for RAM staking is the possibility of people “hoarding” RAM speculating its price increase, thus resource allocation is not maximized.

[kwaben]

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?
   Under 3.0, u get back the price you paid for RAM if its unused. In 4.o you get back the market price at the time of return, so you may get less than you paid.
3. What are the benefits or having a market based model for RAM staking?
   Discourages hoarding
4. What are the drawbacks of having a market based model for RAM staking?
   You may actually lose

[MrAndres]

1. What would happen if a dapp runs out of RAM?
   As RAM is a scarce resource for developing dApps, developers need to make sure there is enough RAM to store the application state until that state is deleted. Otherwise, some operations can not carry on, and smart contracts won’t deploy.

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
   In Dawn 3.0, the token holders can sell RAM for the value they paid when originally staking EOS tokens, meaning the exchange rate is pegged. In Dawn 4.0, EOS switched to a market-based allocation approach a token holder can receive capital gains from un-staking his RAM freeing the resources.

3. What are the benefits of having a market based model for RAM staking?
   It allows RAM resources to be accessible for future allocation during high demand, incentivizing holders to un-stake their staked EOS for a profit.

4. What are the drawbacks of having a market based model for RAM staking?
   RAM gets more expensive as more developers enter the ecosystem because more RAM is extracted from the market.
   RAM can be held just on value speculation making it costly for developers to acquire the resources they need, which is a misuse of RAM.

[FreeBird81]

1. Operations are unable to carry out and smart contracts cannot be deployed.

2. In Dawn 3.0 system contract, token holders can only sell RAM for the price they paid. And in Dawn 4.0 EOS switched to a market-based allocation approach using the Bancor algorithm.

3. Providing more balance in terms of supply and demand of RAM allocation.

4. RAM will be more expensive when more developers for dApps join in.

[petroslk]

1. The smart contract cannot be deployed and the operations are unable to carry out
2. in Dawn 3.0 token holders can only sell RAM for the price they paid , the Dawn 4.0 is a market driven solution where the owner can gain capital gain by unstaking the RAM
3. the allocation of the RAM is more efficient
4. as more data needed to be stored for a long time, more ram is extracted out of the market, so RAM is going to get more expensive for future Developers

[Murisoja]

@filip

Welcome to the discussion about this reading assignment.

Leave your answers to the questions below in this thread. If you have any questions or you want to discuss something connected to the assignment feel free to do it in this thread as well, but please everything to the topic.

1. What would happen if a dapp runs out of RAM?
2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
3. What are the benefits or having a market based model for RAM staking?
4. What are the drawbacks of having a market based model for RAM staking?

1. it will stop running
2. dawn 4.0 changed us to market based allocation.
3. no hoarding the RAM anymore.
4. it could push RAM high and expensive for the devs, and waste RAM resources.

[supertramp007]

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? You can receive capital gain from un-staking your RAM
4. What are the drawbacks of having a market based model for RAM staking? manipulation and speculation

[Y2z3H]

1. The dapp won’t be able to deploy smart contracts and some operations cannot be carried out.

2. The Bancor algorithm was used to move EOS to a market-based allocation approach.

3. Some parameters in the Bancor relay algorithm influence how quickly the price moves in response to incoming requests to buy and sell RAM. This can aid market participants in interacting with the market maker in order to more efficiently bring it back toward market value, resulting in a more predictable and stable market for both RAM speculators and RAM users.

4. The speculators’ illogical behaviour on RAM will drive up the price of RAM, making it more expensive for dApp developers to purchase the resources they require, damaging the ecosystem. Due to speculation or other causes, a considerable quantity of RAM is underutilised, resulting in a waste of RAM resources.

[Chris83]

1. Some operations are unable to be computed and smart contracts cannot be deployed.

2. It introduced a market based model for RAM allocation which means that the price of RAM allocation changes over time.

3. It insentivices developers to free up RAM allocation when it is not needed.

4. That when more and more RAM is extracted from the market the price of RAM allocation increases which does not insentivize new development on the plattform because it becomes too expensive. A potential solution to this problem is the continous burning of EOS tokens.

[Aleksander]

1. Dapp will stop running.
2. Dawn 4 allows the value of EOS staked for RAM to float to the market rate for EOS.
   does anybody even read this?? just wondering
3. 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?
4. 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.

[Allistair_Trent]

• 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?

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.

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

Incentivizes people who are not using RAM to un-stake their tokens.

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

It can be subject to speculation which takes resources away from productive ends where they are needed.