EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#41 
1. What would happen if a dapp runs out of RAM?
• It would no longer be able to function as intended
2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? 
• They changed the exchange of EOS for RAM from a fixed price to a price that can change based on the market
3. What are the benefits of having a market based model for RAM staking?
• It introduces risk in un-necessarily holding RAM, incentivising RAM to be sold as it cannot be used a placeholder for EOS. This should free up RAM and reduce inefficiencies
4. What are the drawbacks of having a market based model for RAM staking?
• It introduces the risk of the price of RAM going so high it is too expensive for dApps to use and it could lead to speculators holding RAM for the increase in price, wasting network resources.
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#42

  1. If a dapp runs out of RAM, the smart contract can´t be deployed, because some operations are unable to carry out.

  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 could sell RAM for the price they bought it for - in Dawn 4.0 the price is based on the market.

  3. What are the benefits or having a market based model for RAM staking?
    When the price for RAM goes up, people are more willing to unstack their EOS and sell it for a higher price and give to developer, who need it. This way the resources won´t be unused.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation and manipulation–> not enough RAM for using and building new and better dApps.

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#43
  1. Some operations will be unable to carry out and smart contracts cannot be deployed.
  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. With the market-driven model, you can receive capital gain from un-staking your RAM, and therefore you’ll be willing to free the resources.
  4. With speculation and increase in Dapps, token cost will inflate and developers will have no reason to un-stake RAM to free-up resources.
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#44

  • What would happen if a dapp runs out of RAM?
    Some operations will not be carried out and smart contracts would not deploy.

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

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

  1. As demand increases, it makes RAM more and more expensive.
  2. Waste due to unused RAM as speculators stakes it for future gains
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#45
  1. What would happen if a dapp runs out of RAM?

some or all functions would cease.

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

3.0 price you paid is the price it returns as.
4.0 price is the “market” price (Bancor Algorithm)

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

Compared to the previous model it deters speculative resource hoarding.

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

However speculators could still hold ram as the/ in Hope’s of, the price rising. This wastes resources and slows down growth of the ecosystem

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#46
  • What would happen if a dapp runs out of RAM?

Some operations and smart contracts will not be carried out

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

3.0 = only able to sell for the price you paid

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

People won’t hoard RAM because the price went up. They can sell it for capital gains

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

-As more devs join, supply decreases which means price increases
-Speculators may make price increase, which makes it more expensive for devs and less available

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#47

1
operations can no longer be made. will stop running

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

3
more incentive to free up the RAM when being able to make profit, less hoarding.

4
speculation, drastic increase of price

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#48
  1. What would happen if a dapp runs out of RAM?
    Some operations are unable to carry 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?
    With Dawn 3.0 system contract, token holders can only sell RAM for the price they paid. With Dawn 4.0, market will determine allocation through Bancor algorithm.
  3. What are the benefits or having a market based model for RAM staking?
    a more balanced pricing for long term therefore discourages hoarding
  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation.
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#49
  1. When a Dapp runs out of RAM, it can stop running.
  2. Dawn 3.0 uses a fixed rate pricing model. Dawn 4.0 uses a market rate pricing model.
  3. In the market rate pricing model, the RAM can increase in value, which can incentivize RAM holders to sell and release RAM for others to use.
  4. In a market rate pricing model, speculators can buy RAM in hopes of making a profit on its sale, which can reduce the supply and increase the price of RAM for use by the Dapp developers. Speculative activity can have a negative effect on the EOS ecosystem.
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#50

1 Smart contract will stop working.
2 The token halders can only sell ram for the same price they pay.
3 The benefits of a market based model for RAM staking is fair pricing and more effective resource utilization (in theory), reducing hoarding and optimizing price.
4 The benefits of a market based model for RAM staking is fair pricing and more effective resource utilization (in theory), reducing hoarding and optimizing price

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#51
  1. If a dapp runs out of RAM, the smart contract would be unable to be deployed.
  2. The change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market is that allocation became market-driven.
  3. The benefits or having a market based model for RAM staking is that unused RAM resources don’t just sit there and continue to be unused.
  4. The drawbacks of having a market based model for RAM staking is that speculators will buy as well, driving up the price.
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#52

What would happen if a dapp runs out of RAM?
Some operations cannot be carried out and smart contracts cannot be implemented.

What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
In Dawn 3.0 they could only sell the RAM at the price they acquired it, in Dawn 4.0 it is sold at the market price using the Bancor algorithm.

What are the benefits of having a market-based model for RAM stakeout?
That way we prevent developers from maintaining RAM that they are not using, since thanks to the market-based model they can earn capital by doing RAM un-satking.

What are the disadvantages of having a market-based model to rethink RAM?
That speculation can send the price of RAM to the clouds and that developers cannot afford the resources they need.
As well as many developers join the blockchain and get to consume 100% of the available RAM in the ecosystem.

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#53

  1. If a dapp runs out of RAM, it will stop working and smart contracts cannot be deployed.

  2. The change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market is the switch to a market-driven allocation approch.

  3. The benefits of having a market based model for RAM staking is to reflect real usage by the network and motivate the developpers to free the ressources when they don’t need them anymore.

  4. The drawbacks of having a market based model for RAM staking is that price evolution can be driven by speculation.

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#54
  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, user 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?
  • However, the lack of market mechanism causes some allocation efficiency problems. Think about a dApp developer, say Peter, who bought 1,000 EOS and staked 500 EOS for RAM resources for developing a dating dApp on EOS.
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#55
  1. When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.
  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 Dawn 4.0 switched to a market-based allocation approach using the Bancor algorithm.
  3. It should provide more balance over time in terms of supply and demand of RAM allocation.
  4. 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. Maybe to expensive…
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#56

  1. When a dapp runs out of RAM some operations cannot be carried out and the smart contract cannot be deployed

  2. The main difference between Dawn 3.0 is that token Holders of the RAM can sell back for the price they paid, but Dawn 4.0 it is market driven, ie price sold back can be less or more

  3. The benefits of market base for RAM is that projects which are unsuccessful can get a return and sell back the RAM token, assuming the market is increasing

  4. The drawbacks of market base for RAM is that projects, which are unsuccessful, can hold the RAM as a speculative asset and thus fill the blockchain without any meaningful projects

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#57

  1. When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.

  2. In Dawn 3.0, the EOS staker could only sell their RAM for the price they had paid for it, whereas Dawn 4.0 switched to a market-based allocation model.

  3. A market based model incentives people to unstake their EOS allocation to RAM if they are not using it productively.

  4. The drawback of having a market based model for RAM staking is that it exposes stakers to market fluctuations.

1 Like
#58

EOS RAM Allocation - Reading Assignment

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

  • operations are unable to carry out and the smart contract cannot be deployed

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

  • tokenholders can only sell RAM for the price they paid

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

  • developer can recieve capital gain from un-staking their RAM, and therfore willing to free the resources
  • no resource waste by holding RAM

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

  • RAM will be more and more expensive when many developer join the Network
  • speculators can rise the price of RAM making it too expensive for developers
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#59

The dapp would not work as it would not be able to run everything.
It introduced a market based model using the Bancor algorithm.
It helps deal with inefficient resource allocation.
As demand grows it becomes more expensive.

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#60

  1. What would happen if a dapp runs out of RAM?
    Transactions are not possible to be executed anymore. Per example a deploy of a smart contract could be prevented in this case which could cause the dApp to fail to work.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    A change to marked driven pricing of the RAM allocation. The RAM allocation was in 3.0 at fixed rate. The change causes a demand and supply driven pricing for the RAM.

  3. What are the benefits or having a market based model for RAM staking?
    The benefit is the incentive of the user to free up the RAM resource if not needed when the price is higher. More supply will satisfy the demand and should lower the price in consequence.

  4. What are the drawbacks of having a market based model for RAM staking?
    The more users take part in the network and use/develop dApps the more scarce the RAM resource becomes which does drive the price up in consequence. The irrational behavior of people causes unpredictable price movements. Also speculation is nurtured which drives the price further and if RAM is just allocated for the sake of speculation the RAM resource is wasted as not used productively. These effects could lead to the deterioration of the Network and users will flee as the it becomes unusable.

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