EOS RAM Allocation - Reading Assignment

  1. What would happen if a dapp runs out of RAM?
    It 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 rather than a a price paid approach.
  3. What are the benefits or having a market based model for RAM staking?
    A balanced pricing and reducing hoarding of RAM allocation.
  4. What are the drawbacks of having a market based model for RAM staking?
    People can hold RAM if price is high.
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If a dapp runs out of RAM, some operations will not be carried out.
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 dynamic market based allocation.
Fair pricing and more effective resource utilization reduces hoarding and optimizes cost.
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 may continuously burn EOS tokens from the RAM contract to offset inflation.

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  1. Dapp will stop running.
  2. A switch to a market based allocation approach rather than the price paid approach.
  3. It should provide more balance over time in terms of supply and demand of RAM allocation.
  4. Speculation hinders development by increasing the costs of RAM for intended use cases.
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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 have paid for;
In Dawn 4.0, a market-based approach is used to factor the price for the Staker using the Bancor algorithm.
3.
With the market-driven model, a dApp developer can receive capital gain from un-staking his RAM, and therefore willing to free the resources.
4.
As demand increases for RAM, it makes RAM price higher.
Wastage of RAM capacity as unused RAM holders stake it for future gains.
Theoretically incentivizing hoarding and speculation.

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What would happen if a dapp runs out of RAM?
Some operations won’t be carried out and smart contracts wouldn’t deploy.
What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
In Dawn 3.0 token hodlers could only sell RAM for the price they paid. Now in Dawn 4.0 there is a more dynamic market based allocation.
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.
What are the drawbacks of having a market based model for RAM staking?
I the EOS price goes up, the hodler might choose to leave the stake at place, which will consume resources. There is no incentive for the developer to withdraw their stake.

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  1. If a dapp runs out of RAM some operations of the smart contract will stop or not be completed.

  2. Dawn 4.0 changed the cost of RAM to a market price system in place of the previous fixed price model.

  3. This encouraged holders of excess RAM to return it to make available for use by others.

  4. As the market expands more developers require increasing amount of RAM driving up the price. This may also cause speculation and hoarding.

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1. What would happen if a dapp runs out of RAM?
When there is not enough RAM for a DaPP, then some operations will be unable to be carried out and smart contracts will 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 that they paid. 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?
As the price increases developers have more incentive to un-stake and free up the RAM.
4. What are the drawbacks of having a market based model for RAM staking?
As more DaPP developers join, there is less RAM, then RAM becomes scarce, so the price will increase.

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1. What would happen if a dapp runs out of RAM?
Some actions of the dapp simply will not work because it needs to be allocated in RAM (which is not, because is full), smart contracts are allocated in ram, not enough ram = you cant deploy the smart contract.

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
At Dawn 3.0 when you sell ram, price was fixed to the price you bough.
At Dawn 4.0 a dynamic market-driven model for RAM was presented, this model use the Bancor algorithm to re-calculate the market.

3. What are the benefits or having a market based model for RAM staking?
Users are now incentive to un-stake the RAM that their not using to get some capital profit.

4. What are the drawbacks of having a market based model for RAM staking?
At more dapps developers start to join, RAM will be more scarce, meaning an increase of the RAM price.
Or can just be treated has an speculative market, when users just hold ram to made it scarce and wait for the price to increase. Either ways, the market should always find a balance on that scenario.

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  1. What would happen if a dapp runs out of RAM? When RAM is insufficient for a dApp, some operations are unable to be carried 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. 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? Greater efficiency, captital gains can be had from un-staking RAM with incentive to free resources.
  4. What are the drawbacks of having a market based model for RAM staking? A 0.5% staking and unstaking fee and becoming more expensive as more developers need RAM for longer periods of time. Potential deterioration of the ecosystem is a real problem, due to speculators irrational behavior with RAM use making it too expensive for those who need it.
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  1. Some operations of the dApp cannot be executed and the smart contract cannot be deployed.

  2. In Dawn 4.0, the RAM price is marked-based allocation using the Bancor algorithm. In Dawn 3.0, the RAM price being sold is similar to the price bought by the seller.

  3. Upside incentive for the RAM sellers.
    Unused RAM is encouraged to un-stake because of the capital gain to the developer.
    Reduced waste of RAM resources.

  4. RAM prices can become too expensive for low-budget developers.
    EOS dApps could becomes expensive to develop and this causes pricing competitive issues with the other blockchain dApps.

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1.What would happen if a dapp runs out of RAM?
Some operations will be 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 Dawn 3.0 token holders can only sell RAM for the price they paid. Under Dawn 4.0 the process can be done with a market-based approach using the Bancor algorithm.
3. What are the benefits of having a market based model for RAM staking?
Developers can receive capital gain form un-staking their RAM.
4. What are the drawbacks of having a market based model for RAM staking?
strong textRAM could be more and more expensive while more dApp developers join. RAM speculation.

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  1. Smart contract cannot run anymore
  2. Under Dawn 3, holders can only sell RAM for the price they paid, just as the other resources. In Dawn 4, the price is determined through market-based allocation.
  3. It is decentivized more to hoard RAM space in the network, and keeping well-performing dapps are incentivized.
  4. Costs for resource allocation are not fixed and price fluctuations make it harder to judge costs for running a project or dapp.
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  1. It would cease to be able to carry on running in the sense that some operations can’t continue, and smart contracts cannot be further deployed.

  2. Whereas Dawn 3.0 disallowed token holders reselling RAM for more than they had bought it for, Dawn 4.0 introduced market dynamics.

  3. It incentivises the efficient allocation of unused RAM where it is needed. This may otherwise have remained unused, yet unavailable for use to others - as RAM is in limited supply, this was a problem without the market dynamics.

  4. If you introduce free market dynamics, speculative behaviour can and does follow, and this can become problematic in terms of with what the RAM market is in itself trying to achieve. There seemed to be two issues with this - one, that as Dapp developers increase, RAM becomes more scarce, and therefore prohibitively expensive, and two, that speculators drive the price up. I looked for some updated news on how EOS is doing with this, but couldn’t easily find much after 2018.

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  1. It will not work properly.

  2. In Dawn 3.0 the price was fixed för RAM in Dawn 4.0 it’s constructed the way that you pay for RAM the market price.

  3. To incentive un-staking, to free receources, in a proper way.

  4. One good thing with Dawn 3.0 was that you had no incentive to buy and store RAM for speculation purpose

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Dapp is unable to run correctly

In 3.0 you could sell the RAM for the price that you payed it with, in 4.0 it got flexible

RAM prices are getting higher as popularity grows which makes it hard/expensive for developers to launch Dapps

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  1. The dapp just won’t run.
  2. In 4.0, EOS Ram is now sold at market rate.
  3. More efficient allocation of Ram.
  4. Ram price speculation can increase.
2 Likes
  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. From Down 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?
    Is to disincentivize hoarding and speculation, as no extra EOS could be gained by merely buying and selling RAM: you always get what you have paid.

  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.

The speculators’ irrational behavior on RAM will push RAM high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem. There is large amount of RAM, due to the speculation or other reasons, are unused, causing a waste of RAM resources.

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  1. When a dapp runs out of RAM operations cannot function and smart contracts
    can not be activated.
  2. In Dawn 3.0 RAM was pegged so as to get back exactly what you staked in
    RAM but in Dawn 4.0 a RAM market was created with a fluctuating price.
  3. A market for RAM staking creates an incentive to sell RAM that is not in use.
  4. The draw backs to a RAM market based modal for staking is the price of RAM
    can become to high for developers.
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  1. Dapp cannot execute the operations
  2. Ram Market price was installed
  3. Unused rams can be efficiently unstaked if the ram market price goes up
  4. Potential risk of price increase due to scarcity of unstaked rams in the market.
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The smart contract won’t be executed.

Dawn 3.0 Token holders sell RAM for the same price they paid.
Dawn 4.0 Use Bancor algorithm that are marked based allocation.

Users can receive capital gain from un-staking their RAM.

RAM is gonna get more expensive.

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