EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#563

1. What would happen if a dapp runs out of RAM?
If a Dapp runs out of RAM, then some operations cannot be carried out, and the Dapp will stop running.

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
EOSIO Dawn 4.0 introduced a big change in the EOS RAM Allocation Model. The price of RAM on the market is now determined by the dynamics of supply-demand relationship.

3. What are the benefits or having a market based model for RAM staking?
It reduces hoarding of RAM at fixed price, incentivizing developers to free up unneeded RAM when the price goes up for example so that other developers can use it.

4. What are the drawbacks of having a market based model for RAM staking?
The market-based model can make RAM more expensive, as more developers are joining the market and RAM becomes more and more expensive. This can also create place for RAM price speculation as the RAM resource becomes more and more expensive.

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#564

  1. The same as what would happen if a ETH dApp ran out of ETH. Wouldn’t run.

  2. Ram prices can now fluctuate between buys and sells. Buyers can now sell Ram for a variable price in EOS, instead of being locked at their buy-in rate.

  3. It provides incentive for people who have otherwise useless locked ram, such as failed dApps. High RAM prices provide opportunity to sell for a profit in EOS.

  4. RAM usage inflates RAM price, and as in any volatile market, people will speculate on it, causing “useless” usage of the network and inflating prices for devs and users.

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#565

hi everyone,

  1. Some operations are unable to carry out and smart contracts cannot be deployed.
  2. 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. With Dawn 4.0 we move to a market based allocation approach.
  3. It solves allocation efficiency problems: before the change you had no incentive to unstake your ram and that was wasting some resources which could have been freed for other use instead.
  4. Speculation and ending up having ram so expensive that developers can’t afford it (or can afford but the balance benefit vs cost is not in their favour) so we end up again with a waste of resources. Its a bit like people buying lands for speculation over years and not building anything on it while some people may have used it to build a house for their family.
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#566

1.) If a dapp runs out of RAM, certain operations on the dapp are unable to be carried out and smart contracts cannot be deployed. Storage of application state initially requires dapp developers to ensure there is enough RAM until this state is deleted.
2.) The change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market was from the initial model (Dawn 3.0 system contract) where token holders could only sell RAM for the price they paid, to a new model (Dawn 4.0) which relies on market-based allocation for resources using the Bancor algorithm.
3.) The benefits of having a market based model for RAM staking are capital gain profits for the dapp developer, which gives an incentive to free up those resources. The lack of market mechanism in the initial model created allocation efficiency issues, since the possible price rise of EOS tokens based on market conditions didn’t provide developers with an incentive to release their staked tokens.
4.) The drawbacks of having a market based model for RAM staking is rising prices of RAM itself. When more dapp developers join the the network, the more RAM is extracted out of the market, which continuously makes RAM more expensive.

#567
  1. Some operation unable to carry, some contracts can not be deploy.
  2. In Dawn 3.0 token holders could only sell RAM for the price they paid, with Dawn 4.0 EOS switched to a market based allocation using Bancor.
  3. When the holders have more RAM staked than need it, token holders can unstake them to free up resources to more need it developers.
  4. It could reduce the amount of circulated RAM, therefore adding preasure to the upside price, making it expensive for developer.
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#568
  1. What would happen if a dapp runs out of RAM? some operations with the dapp 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, EOS holders can only sell ram for the price they paid for the ROS token. This means there is no incentive to unstake the EOS if price rises and causes hoarding and a waste of RAM resources. With Dawn 4.0, it tracks the real market price which incentives unstaking if prices rise and frees up RAM instead of wasting it if a Dapp is no longer functional or worthwhile.
  3. What are the benefits or having a market based model for RAM staking? It increases allocation efficifiency of RAM resources by disincentivizing hoarding of token since the token holders can now take advantage of market rates if prices are increasing
  4. What are the drawbacks of having a market based model for RAM staking? Basically the reverse of the answer to question #3. If the market is not favorable, Token Holders may choose to keep staking and wait as long as necessary until market prices improve. This will cause RAM shortage just as Dawn 3.0 potentially can
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#569
  1. What would happen if a dapp runs out of RAM?
    A. 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. 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?
    A. With the market-driven model, you can receive capital gain from un-staking your RAM, and therefore be willing to free up the resources.
  4. What are the drawbacks of having a market based model for RAM staking?
    A. 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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#570

1 The smart contract wont be able to work.

2 Now on Dawn 4.0 can receive capital benefits from unstacking RAM.

3 There will be more benefits for everyone: from the unstacking miners and more free space on the RAM to be used by others.

4 More developers will join it, using more storage for the data and making RAM more expensive, deteriorating the environment and wasting resources.

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#571
  1. What would happen if a dapp runs out of RAM?
    Soem operations cannot be carried out and smart contracts can´t be deployed.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    On Dawn 3.0 you could sell RAm for the same price you bought it. On 4.0 the price is determined by the market.
  3. What are the benefits or having a market based model for RAM staking?
    People could sell of their excess RAM to others and receive a gain from that.
  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation on the RAM price could drive it up. New developers could be truned away by high costs.
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#572

  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?
    Dawn 3.0 system contract - token holders can only sell RAM for the price they paid.
    Dawn 4.0 system contract - now buys and sells RAM allocations at prevailing market prices.

  3. What are the benefits or having a market based model for RAM staking?
    in the long term the price will be more balanced and it discourages hoarding.

  4. What are the drawbacks of having a market based model for RAM staking?
    it causes speculation and drives up the price.

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#573
  1. What would happen if a dapp runs out of RAM?

When a dapp runs out of RAM, some operations are unable to carry out and smart contracts cannot be deployed.

  1. 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 could only sell RAM for the price they paid, just as the other resources while in Dawn 4.0. EOS switched to a market-based allocation approach using the Bancor algorithm.

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

Market-based model for RAM staking increases efficiency of RAM allocation and provides more balance to supply and demand by discouraging hoarding as it incentivizes EOS RAM stakers to un-stake the non-utilized RAM capacity.

  1. 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. Increase in prices of RAM may discourage dApp developers to buy the resources they need, and thus ecosystem might deteriorate.

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#574
  1. What would happen if a dapp runs out of RAM?

If a dapp runs out of RAM some operations are unable to carry out and smart contracts cannot be deployed.

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

In the Dawn 3.0 system contract,token holders could only sell RAM for the price they paid. In the Dawn 4.0 system, holders could sell RAM based on market-based allocation for resources using the Bancor algorithm.

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

It creates a more balanced pricing and reducing hoarding of RAM allocation which is not efficient.

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

People who do not need to use RAM, like speculators on RAM, could push RAM prices high making it expensive for those who actually would need to use RAM, like the developers. This would eventually weaken the EOS ecosystem.

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#575
  1. What would happen if a dapp runs out of RAM?

dAPP would start not working properly, slowing down and smart contracts won’t be executed

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

a change on market-based allocation of RAM.

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

a better RAM allocation than only supply/demand model

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

more dAPPS added more RAM needed and will get very expensive; RAM hoarding speculation.

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#576

A1. Dapp will stop running
A2. In Dawn 4.0 the price is market driven where as in 3.0 the price was resource holder driven.
A3. Balance and fair pricing
A4. Risk of speculative pricing.

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#577
  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?
    increased efficiency and a better balance of supply and demand
  4. What are the drawbacks of having a market based model for RAM staking?
    the RAM price can go up, and developers might need to pay more, which can make the ecosystem less inviting, especially these days, since EOS is in competition with many other big blockchain systems. If costs are too high, these other blockchains might look more attravtive to developers, who might want to use them for dapps, instead of EOS.
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#578

  1. The dapp will stop running as it has run out of data storage.

  2. Dawn 4.0 had a big change in EOS RAM allocation mode. In the previous Dawn 3.0, token holders could only sell their RAM for the same price they paid. 4.0 had a market-based approach instead using Bancor alorithm.

  3. The benefits of the 4.0 market based model for RAM, was fair pricing and more effective resource utilization which reduced hoarding and optimized the price with a pegged rated, i.e nothing to lose if you withdrew your stake.

  4. People can hold on to their ram and speculate on the future price when they don’t need to use it. So more RAM is extracted from the market which makes RAM more expensive.

2 Likes
#579
  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.

  1. 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.

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

With the market-driven model, one can receive capital gain from un-staking his RAM, and therefore willing to free the resources.

  1. 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.

1 Like
#580
  1. What would happen if a dapp runs out of RAM?
    Dapp wont run anymore.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    3.0 couldn’t sell at market price only the paid price 4.0 allows you to sell at market price
  3. What are the benefits or having a market based model for RAM staking?
    Prevents spamming the network.
  4. What are the drawbacks of having a market based model for RAM staking?
    The price fluctuation and crypto market speculation, it also depends what price is paid for the tokens and if the dapp has been profitable, it depends but could result in losses since is crypto market related.
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#581
  1. A DAPP would stop running and smart contracts could not be executed.
  2. Under DAWN 3.0 RAM users release their RAM for the price they paid. Under DAWN 4.0, the release their RAM according to a fluctuating market price of RAM.
  3. The RAM holder can sell for gains if market is up, or for loss if it goes down. This will incentivize the holder to sell when not using RAM.
  4. Some people can hold RAM and wait for price increase to make profit. This will deteriorate the ecosystem…maybe even monopolize it and this is against the concept of decentralization.
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#582

  1. The Dapp will pretty much stop running/working.

  2. Dawn 4 allows the value of EOS staked for RAM to float to the market rate for EOS.

  3. The market based model incentivizes users to sell their staked RAM to free this memory for other purposes.

4.there wil be a lot of unused ramed due to price speculation and hoarding.
the more dapps there are the less amount of ram that is available

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