EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#523

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

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Under Dawn 3.0 the price of ram was fixed, ergo no speculation or profit/loss
    Under Dawn 4.0 the price is market based.

  3. What are the benefits or having a market based model for RAM staking?
    a more fluid distribution of Eos, less hoarding

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculative losses, buyouts causing price spikes etc.

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#524

Reading Assignment: EOS RAM Allocation

  1. What would happen if a dapp runs out of RAM?
    Some applications 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 RAM market?
    Dawn 3.0 - could only sell for the price paid
    Dawn 4.0 ā€“ switched to a market-based allocation approach using Bancor algorithm
  3. What are the benefits of having a market-based model for RAM staking?
    Pricing will be more balanced
    Preventing hoarding of unused RAM
  4. What are the drawbacks of having a market-based model for RAM staking?
    In the case that more data is needed and more RAM is used it can become more and more expensive to purchase.
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#525
  1. The Dapp will not funtion.
  2. Going from a set price to market based price.
  3. Gives developers incentive to un stake their ram.
  4. People might start trading ram as they would stocks, staking it then wait until the price increases.
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#526

  1. What would happen if a dapp runs out of RAM? Some operations are unable to complete and smart contracts deploy.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? In Dawn 3.0 RAM was treated the same as CPU and Bandwidth, with a fixed allocation model. Dawn 4.0 changed that to a market-based allocation model for RAM only.

  3. What are the benefits or having a market-based model for RAM staking? Allocation efficiency is the biggest benefit, as holders are not incentivized to hold onto unused RAM if they can make a capital gain on the EOS that is used to stake for that RAM.

  4. What are the drawbacks of having a market-based model for RAM staking? Having a system where the exchange rate is pegged disincentivizes ā€œhoarding and speculationā€, as no EOS is gained by buying and selling RAM.

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#527

EOS RAM Allocation ā€“ Questions


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

DApp developers need RAM to run dapps. RAM is a precious resource to the development of dApps. Storage of application state will require a dApp developer to ensure there is enough RAM until that state is deleted. 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 of having a market-based model for RAM staking?

Should provide more balance over time in terms of supply and demand of RAM allocation.
ā€“> more balanced pricing and reducing hoarding of RAM allocation.

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

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.

Additionally, the irrational behavior of speculators on RAM will likely push RAM prices high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem.

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#528

  1. What would happen if a dapp runs out of RAM?
    The app can stop functioning or some of itā€™s features will not work.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    It switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0. It allowed to allocate RAM space based on usage and activity of the market.

  3. What are the benefits or having a market based model for RAM staking?
    It allocates RAM space for dapps that are used more and that need the RAM more objectively.

  4. What are the drawbacks of having a market based model for RAM staking?
    It allows room for some speculation and willingness to earn on market swings. This could push the RAM price up when it is needed for developers during an active market phase.

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#529

  1. The dapp will stop running.

  2. Dawn 3.0 = token holders can only sell RAM for the price they paid.
    Dawn 4.0 = itā€™s using market driven allocation through Bancor algorithm.

  3. Discourages hoarding of tokens as price may increase. Un-staking then frees up RAM for other developers to use.

  4. Speculators may hold RAM and push prices up making the resources more scarce as itā€™ll be unused or wasted, further incentivizing hoarding.

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#530

  • What would happen if a dapp runs out of RAM?
    It would stop running and new operations will not be executed.

  • What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Created a dynamic market allocation instead of only selling tokens for the right place.

  • What are the benefits or having a market based model for RAM staking?
    More effective utilization reducing hoarding and optimizing price.

  • What are the drawbacks of having a market based model for RAM staking?
    Drawbacks are speculation and manipulation.

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#531
  1. It will stop running.
  2. Market-based approach.
  3. Efficiency and reduced hoarding.
  4. Speculation.
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#532

  1. What would happen if a dapp runs out of RAM?
    A: 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?
    A: In 3.0 tokens are sold witth the price that have been bought. With 4.0 EOS switched to a market-based allocation approach using the Bancor algorithm,

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

  • Main benefit is to incentivise the un-staking RAM that is not used when the market goes up.
  1. What are the drawbacks of having a market based model for RAM staking?
    Speculators can use RAM price just to get the gains from the market change, rather than use allocated RAM. And we could have a large amount of RAM, due to the speculation or other reasons, which are unused, causing a waste of RAM resources.
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#533
  1. It will stop running some operations and preventing smart contracts
  2. fixed vs. market driven allocation
  3. A market-based model would allow. you to receive capital gain from unstaking your RAM, so there is greater incentives to free unnecessary RAM
  4. RAM price speculation will be more expensive as more dapps join resources.
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#534

  1. What would happen if a dapp runs out of RAM?
    Some operations for the dapp would be unable to be carried out and smart contracts can no longer 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, token holders can only sell RAM for the price they actually paid. Under Dawn 4.0, the value of EOS staked for RAM is a floating market rate and could be higher or lower than the original rate at time of staking

  3. What are the benefits or having a market based model for RAM staking?
    A market based model for RAM staking should improve allocation efficiency. Users would have incentive to unstake EOS for RAM when the market price is increasing, so there shouldnā€™t be indefinite tie-up of RAM resources as long as the market can keep reacting to the supply and demand forces and free up space when the financial incentive is high enough.

  4. What are the drawbacks of having a market based model for RAM staking?
    Under a market based model for RAM staking, there is a possibility that some participants could engage in hoarding and speculating based on the price movements, adding another variable to the availability of RAM.

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#535

  1. What would happen if a dapp runs out of RAM?
    Operations are unable to be carried out/

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    They changed to a market-rate model vs the previous model that gave a 1=1 return back on RAM used.

  3. What are the benefits of having a market-based model for RAM staking? A market-rate model will help keep RAM available in the network because of the price arbitrage. In the previous model, there was no monetary incentive to release your RAM.

  4. What are the drawbacks of having a market-based model for RAM staking? Speculatorsā€™ irrational behavior on RAM can push RAM higher, making it expensive for dApp developers to buy the resources they need, which deteriorates the ecosystem. A large amount of RAM being bought, but not used becomes a waste of RAM resources.

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#536
  1. What would happen if a dapp runs out of RAM?
    Some dApps could stop running and the ecosystem could callapse/
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    A market based allocation approach instead of having to sell for the price that was paid
  3. What are the benefits or having a market based model for RAM staking?
    To prevent hoarding of RAM, if thereā€™s no risk to hold, then why sell it?
  4. What are the drawbacks of having a market based model for RAM staking?
    Speculators with no use for the RAM could buy and hold for monetary gain
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#537

  1. What would happen if a dapp runs out of RAM?
    Dapp stops running.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Under 3.0 users where only able to sell RAM with the price they paid themselves, under 4.0 the price can be dynamic.

  3. What are the benefits or having a market based model for RAM staking?
    The resources that are not used efficiently can be freed against capital gains.

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

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.

Irrational behavior of speculators on RAM could push RAM prices high making it expensive for those who actually would need to use RAM (developers).

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#538

  1. If dApp runs out of RAM, then some operations would be unable to be carried out and smart contracts wonā€™t get deployed.

  2. Under Dawn 3.0, token holders didnā€™t get anything extra for what they had paid, i.e., they sold for the price they had initially paid. On the contract, under Dawn 4.0, the selling price of the token is to be set up by the free market - it could increase and decrease depending upon demand & supply.

  3. Price is set by the market, and token holders can un-stake their holdings that can result in capital gain.

  4. Key drawbacks for having market-based RAM staking model:

  • Expensive RAM since more dApp developers will be joining the platform for their projects, and the RAM is limited to only 65GB.

  • Irrational behavbiour of speculators will drive RAM up that will make it more expensive for developers for use. Thus, they may not be willing to use the EOS platform.

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#539

Dapp will stop functioning

Dawn 4 introduced market based allocation

Fair pricing and more effective resource utilization

Market speculation causing unnecessary higher prices.

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#540

Hello! This was a bit tricky to understandā€¦

  1. What would happen if a dapp runs out of RAM?
    Some operations would be unable to carry out and smart contracts would not be deployed.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Token holders could then only sell RAM for the price they bought it at.
  3. What are the benefits or having a market based model for RAM staking?
    There is more incentive to stake RAM when there is less availability, providing the opportunity to make gains on selling again when there is more availability.
  4. What are the drawbacks of having a market based model for RAM staking?
    More RAM used is extracted out of the market, making RAM more expensive. That said, the high price might also indicate peopleā€™s upside expectation as well as the inverse: their speculation.
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#541

  1. The dapp becomes unable to run certain operations, including deploying smart contracts

  2. A switch between fixed prices to market based orices

  3. Reduced hoarding of RAM as unneeded RAM is now sold rather than hoarded. Also, more balanced pricing of RAM as per demand instead.

  4. Speculators or traders may push RAM prices higher, hoard them in the meantime and so on thus wasting precious resources meant for other things. Also, note that it becomes expensive for developers as well.

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#542

  1. What would happen if a dapp runs out of RAM?
    A. It would be unable to process contracts.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    B. It went from a fixed price to a variable price based on the bancor algorithm.

  3. What are the benefits or having a market-based model for RAM staking?
    C. People will release the RAM they dont need because it may lose value.

  4. What are the drawbacks of having a market-based model for RAM staking?
    D. Some people WILL speculate and buy RAM to try and make money, much like options trading.

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