EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#543
  1. What would happen if a dapp runs out of RAM?
    some operations will not be carried out and smart contracts would not deploy
  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?
    If the price of EOS goes up, the programmer might choose to leave their stake in place, which will consume resources. Thereā€™s no incentive for the developer to withdraw their stake.
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#544

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

ā€œWhen RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.ā€

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

ā€œUnder the Dawn 3.0 system contract, token holders can only sell RAM for the price they paidā€ ā€œEOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.ā€

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

ā€œdisincentivize hoarding and speculation, as no extra EOS could be gained by merely buying and selling RAMā€

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

Users arenā€™t incentivized to unstake and so the resource is not available for others to use.

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#545

  1. What would happen if a dapp runs out of RAM?
    Operations would not be carried out.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    It changed form fixed prices to market made prices.

  3. What are the benefits or having a market based model for RAM staking?
    Enables users to free up their unused RAM from staking profitably.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculators may drive the price up and EOA dApp devs that join might make it more expensive too.

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#546

  1. What would happen if a dapp runs out of RAM?
    If there is not enough RAM then the dapp will be unable to process operations 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 3.0 RAM can only be sold for the same price that was paid for it, with 4.0 it allows for the value of staked EOS for RAM to float to the market rate.

  3. What are the benefits or having a market based model for RAM staking?
    The EOS holder can un-stake RAM to receive capital gains that incentivises the holder to free up the staked RAM

  4. What are the drawbacks of having a market based model for RAM staking?
    As more dapps join, requiring RAM for longer periods of time, the availability of RAM decreases forcing the price upā€¦in addition to speculators trading and holding RAM that make it expensive to develop dapps, eroding the ecosystem.

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#547

1.Some operations cannot be performed and smart contracts cannot be deployed
2. In Dawn 4.0 the Bancor algorythm was integrated and RAM sold at market price, while previously had to be sold at the price you previously bought it
3. It prevents people from sitting on bounch of unused RAM
4.Speculation might force prices to the upside in certain moments

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#548

  1. The dApp would shut down.

  2. They changed to a market-based allocation approach using the Bancor algorithm.

  3. One of the big benefits that they previously struggled with, was unstaking EOS RAM allocation tokens. There was no incentive to do it, which caused holders to waste a scarce resource. This was solved by giving financial incentive to unstaking, when the RAM is not used.

  4. The more people you have on the platform, creating dApps and requiring RAM, the higher the prices will be for RAM, lowering profits, increasing costs and in some cases making the platform unsuitable. Thereā€™s also speculation regarding the price, which pushes the price up. All in all, makes it more difficult for developers with limited budgets.

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#549

1.when RAM is insufficient for dapp, some operations are unable to carry out and smart contract cannot be deployed
2.Dawn 3.0 do not allow RAM holders to benefit from market upside of EOS token whereas Dawn 4.0 will
3.Having market based model deincentivise speculation and hoarding. Itā€™s also helps freeing space If dapp developer is not using it
4.The drawbacks of a market based model for RAM staking include speculation and manipulatio

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#550
  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?
    in Dawn 3.0 token holders can sell RAM for the price they paid. Dawn 4.0 allows market-based allocation approach using Bancor Algorithm
  3. What are the benefits or having a market based model for RAM staking?
    This will encourage or incentivise people to unclog the RAM or free the RAM when there is profit / capital gain for doing so. WIthout market the RAM is typically withheld by developers although their dApp may not be operating as expected.
  4. What are the drawbacks of having a market based model for RAM staking?
    With increasing use of RAM, the price will be more expensive to use. This may lead people to speculate on necessary resources such as RAM instead of using it for something productive.
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#551
  1. It would stop working
    2.The RAM market went from a fixed price to a market-based system
  2. It disincentivizes speculators to hoard EOS on RAM and not using it, which wastes resources nt being used
  3. You stake x-amount of EOS and then get y-amount back (which could be less)
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#552
  • What would happen if a dapp runs out of RAM?

The Dapp stops running

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

Dawn 4.0 allows the value of EOS staked for the RAM to float to the market rate - bancor algorithm

  • What are the benefits or having a market based model for RAM staking?
    It provides an incentive to unstake RAM as the price increases (no blocking / hoarding of RAM in theory)

  • What are the drawbacks of having a market based model for RAM staking?
    As more developers biold DApps on EOS the RAM might become more expensive as speculators might drive up the RAM price making it too expensive for developers. (Also creates RAM wastage)

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#553
  1. The dApps wouldnt be able to be executed anymore
  2. Since dawn 4.0 Ram/EOS is tradeable
  3. Ram is tradeable
  4. It could fall in price
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#554
  1. What would happen if a dapp runs out of RAM?
    When RAM is insufficient for a dapp, some operations are unable to carryout 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?
    Token holders can only sell RAM for the price they paid, just as another resource.
  3. What are the benefits or having a market based model for RAM staking?
    To disincentive hoarding and speculation.
  4. What are the drawbacks of having a market based model for RAM staking?
    The lack of market mechanism causes some allocation efficiency problems
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#555

  1. Some or all functions will cease operating

  2. Dawn 3.0 had the problem of unused RAM being hoarded. Dawn 4s Bancor algorithm was to
    alliviate this by incentivising reselling of RAM back into the market.

  3. Supposed to encourage a more balanced pricing model, less speculative volitivity, and discourage
    hoarding unused RAM

  4. As demand increases so does scarcity of RAM which increases the price, or costs to developers,
    which restricts growth potential for EOS. They need to sort this out for the sake of their own
    survival. (Although ETHs gas fees are no better)

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#556

What would happen if a dapp runs out of RAM?

Running out of RAM can result in some operations being unable to be 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. Under the Dawn 4.0 the market is setting the price.

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

The system market maker is purely responding according the algorithm and this algorithm ensures that the free market is setting the price.

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

When 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. Also, it is more vulnerable speculators.

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#557

  1. Dapp will stop running

  2. 4.0 Introduction of new Bancor trading algorithm. Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid. Now there is a dynamic market based allocation.

  3. It should provide more balance over time in terms of supply and demand of RAM allocation.

4)The drawbacks of a market based model for RAM staking include speculation and manipulation. Also, allocation of funds collected through trading fees may need consideration or continuously burn EOS tokens from the RAM contract to offset inflation.

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#558
  • some operations are unable to carry out and smart contracts cannot be deployed.
  • 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. You can check more details in Daniel Larimerā€™s article. EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.
  • Avoid inefficient allocation of RAM
  • The risk of inflate the price because the growth of the project
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#559

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

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.

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

What are the drawbacks of having a market based model for RAM staking?
If the price of EOS goes up, the programmer might choose to leave their stake in place, which will consume resources. Thereā€™s no incentive for the developer to withdraw their stake.

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#560
  1. What would happen if a dapp runs out of RAM?
    will stop running
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    dawn 4 allows the value of EOS staked for RAM to float to the market rate for EOS.
  3. What are the benefits or having a market based model for RAM staking?
    fair pricing and more effective recourse utilization.
  4. What are the drawbacks of having a market based model for RAM staking?
    speculation and manipulation
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#561

1 Dapp will stop, it canā€™t run without RAM
2 switch to a market based allocation approach rather than the price paid approach.
3 Market based prices for RAM create an incentive for users to sell RAM once prices go higher. This frees up RAM for dapps that need the more RAM_
4RAM could be expensive as more Dapp developers join. Supply/Demand balance.

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#562

1 - DApp will stop running and wonā€™t execute operations anymore

2 - Dawn 3.0: Holders could only sell RAM at the same price they paid for.
Dawn 4.0: Changed for a market-based allocation approach (Bancor Algorithm)

3 - Better supply and demand balance of RAM allocation to counteract high price increase

4 - Crypto investors can now speculate and then drive the price up

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