EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#502

  1. Any Ram based functions will not run.

  2. Market based allocation rather than price paid.

  3. Stability no gain or loss.

  4. Manipulation of RAM. Drive up prices or hoard.

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#503
  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.
  3. What are the benefits or having a market based model for RAM staking?
    –> Under the Dawn 3.0 system contract, you could only sell RAM for the price you paid. The goal was to disincentivize hoarding and speculation. The downside to this approach is that those who buy RAM cheaply have no financial incentive to free RAM for other users after it gets more congested. Under Dawn 4.0 the system contract now buys and sells RAM allocations at prevailing market prices. This may result in traders buying RAM today in anticipation of potential shortages tomorrow. Overall this will result in the market balancing the supply and demand for RAM over time.
  4. What are the drawbacks of having a market based model for RAM staking?
    –> Unpredictability of the RAM costs due to the free price fluctuation.
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#504

  1. If a Dapp runs out of RAM, it stops running

  2. Dawn 4.0 allows a dynamic market allocati9n thank a Bancor algorithm while in the 3.0 version, shaker were enabled to sell their tokens for the paid price only

The market based model for RAM staking
3. Benefits: fair pricing, optimized effectiveness of utilization of the resource, reduces hoarding
4. Drawbacks: speculation, manipulation, inflation

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#505

  1. It will no longer be able to run on the network.

  2. In. dawn 3.0 RAM could only be sold for the price you paid. In Dawn 4.0 RAM has market value and is changing based on demand and supply variables.

  3. Incentivises RAM holders to free up RAM.

  4. In dawn 4.0, RAM is subject to speculation which takes away resources that could be used by dapp developers.

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#506
  1. The dapp will stop running.
  2. In 3.0, you could only sell ram for what you paid. In 4.0, RAM market switched to using the Bancor algorithm, which is a market maker style system.
  3. To prevent hoarding.
  4. If the price of EOS goes up, the programmer might choose to leave their stake in place.
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#507

  1. Some operations in the DApp will not be carried out and smart contracts cannot be deployed.

  2. Under Dawn 3.0, token holders could sell RAM for the price they paid, exchange rate was pegged, no extra EOS could be gain by trading RAM. While with Dawn 4.0, the market driven model, RAM resources could be traded for higher or lower than purchase price, depending on market sentiment.

  3. Prior to a market based model for RAM staking, RAM resources were not efficiently allocated and people could hold on to unused RAM at the detriment of developers who really need RAM resources.

  4. Speculators could influence the price of RAM to the upside and impede the development of EOS ecosystem.

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#508
  1. What would happen if a dapp runs out of RAM?
    Operations unable to be carried out and smart contracts can not be depoyed.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 meant that token holders could only sell RAM for the purchase cost, whilst Dawn 4.0 is market driven, allowing people to sell RAM for higher or lower prices.
  3. What are the benefits or having a market based model for RAM staking?
    Prior to implementation of Dawn 4.0, many would hoard RAM resources, but now with a market driven model, people are incentivized to sell because of capital gain. Less people hoarding RAM means that people and developers who really NEED ram, can use it.
  4. What are the drawbacks of having a market based model for RAM staking?
    Can be subject of speculation, making RAM costs unpredictable due to volatility of EOS and crytpo in general.
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#509

  1. The dapp would stop running.

  2. Dawn 3.0 did not incentivize developers to un stake their RAM and as the blockchain gained popularity the resources for RAM got more expensive.

Dawn 4.0 uses a market driven RAM allocation which provides incentives to un stake their RAM that is not being used to develop to gain a profit and freeing up resources for other active developers to use.

3). There is an incentive to un stake EOS token when the price of EOS token is rising, in turn, freeing RAM resources for active developers to use.

4). The EOS blockchain create momentum and more dapp developers join the RAM allocated in the system will get congested with RAM usage making the cost for developers to soar.

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#510

  1. If a dapp runs out of RAM, it prevents some operations to be carried out. For example, inserts or perhaps new smart contracts could not be deployed.

  2. A switch to a market based allocation approach rather than the price paid approach.

  3. When the market is going up and demand is going up there is incentive to sell for gains.

  4. Speculators may hold RAM and push prices up while making it unused/wasted for actual dapp use

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#511

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?
Dawn 3.0 system contract, token holders can only sell RAM for the price they paid, just as the other resources. Dawn 4.0 the system contract now buys and sell RAM allocations at prevailing market price
3)What are the benefits or having a market based model for RAM staking?
With this model you can receive capital gain from un-staking your RAM and therefore willing to free resource.
4)What are the drawbacks of having a market based model for RAM staking?
It makes RAM more expensive

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#512
  • What would happen if a dapp runs out of RAM?
    Some smart contracts will not be deployed.
  • What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Fixed vs variable pricing model.
  • What are the benefits or having a market based model for RAM staking?
    More balanced pricing long term, discourages hoarding
  • What are the drawbacks of having a market based model for RAM staking?
    More users may drive up the prices or RAM due to scarcity
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#513
  1. When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.
  2. In 3.0 token holders could only sell ram for the price they paid. EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.
  3. Devs can receive capital gain from un-staking their RAM if they don’t need it.
  4. RAM price speculation can go high.
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#514

  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?
    In Dawn 3.0, exchange rate between EOS and RAM is fixed. In Dawn 4.0, the exchange rate is market based.

  3. What are the benefits or having a market based model for RAM staking?
    It provides incentive for people to unstake unused RAM so that RAMis not wasted.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculators can drive up the price of RAM

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#515

All the links at the bottom of the article are broken, current RAM pirce is 0.03 EOS/kB, which would suggest that the system must have changed and this is ancient history. Nevertheless…

  1. Can’t store state info, can’t onboard new users.
  2. RAM/EOS exchange rate no longer fixed responds to market.
  3. There is an incentive to release your RAM if someone else needs it more than you do (and has the green to prove it).
  4. The system can now be clogged by speculators looking to sell back RAM for profit.
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#517
  1. What would happen if a dapp runs out of RAM?
  2. Dapp will stop running.
  3. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    It should provide more balance over time in terms of supply and demand of RAM allocation.
  4. What are the benefits or having a market based model for RAM staking?
  5. It provides an incentive to unstake ram as the price increases…maybe
  6. What are the drawbacks of having a market based model for RAM staking?
    Speculation on the Market Price of the cost of the RAM capacity and As more dApp developers join, and more data 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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#518

1) What would happen if a dapp runs out of RAM?
On EOS network if the dapp runs out of RAM the operations for the transaction might not be completed.

2) What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
Dawn4.0 makes it possible for RAM to be sold at fair market prices and not like the previous version (Dawn 3.0) where token holders can only sell for the price they paid.

3) What are the benefits or having a market based model for RAM staking?
You stake and adds to the use of RAM on the network and when you unstake it reduces the RAM set up on the network. Whit this model you can reduce RAM resources when they are not in use.

4) What are the drawbacks of having a market based model for RAM staking?
As new dapps are built the network will need more RAM resources and as these resources become scarce, the price of RAM will raise.

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#519

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

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
A switch to a market based allocation approach rather than the price paid approach.

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

4. What are the drawbacks of having a market based model for RAM staking?
More users may drive up the prices or RAM due to scarcity.

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#520
  1. The dApp will start running
  2. It allowed value of staked EOS to float according to market price
  3. It stimulates not to use RAM when it`s not needed. In case if market goes up… :slight_smile:
  4. Cost for RAM can be rather unpredictable and subject to speculations
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#521
  1. If dapp runs out of RAM operations are unable to carry out and smart contracts cannot be deployed.
  2. Under Dawn 3.0 holders can only sell RAM for the price they paid. EOS switched to market based allocation approach using the Bancor algorithm from Dawn 4.0. It financially incentives people to sell RAM they don’t need because the demand is high therefore price increases.
  3. There will always be RAM in the market because there’s incentives to sell RAM for money.
  4. More developers join the more RAM is needed and the more expensive it gets. Speculators may also drive the price of RAM higher making it expensive for dapp developers to buy resources.
1 Like
#522
  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
  3. What are the benefits of 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?
    As more developers for dApps join the RAM will be more expensive. Speculators might push RAM high and expensive for developers. It will also cause a waste of RAM resources.
1 Like