EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#81

  1. What would happen if a dapp runs out of RAM? If a dapp runs out of ram this can prevent smart contracts from being deployed due to operations not being able to be carried out.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? The change was that the value at which the RAM can be sold changed from price at purchase (Dawn 3) to market value (Dawn 4).

  3. What are the benefits or having a market based model for RAM staking? The capital gains of the tokens are an incentive to unstake unused RAM and free it up resources.

  4. What are the drawbacks of having a market based model for RAM staking? As above, the incentive to hold for future capital gains as the main reason, where there is no actual need for the RAM is not helpful to the ecosystem and a waste of resources.

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#82
  1. What would happen 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?
  • Dawn 3.0 : token holders can only sell RAM for the price they paid
    Dawn 4.0 : market to trade
  1. What are the benefits or having a market based model for RAM staking?
  • A financial incentive for stakers to free unused RAM
  1. What are the drawbacks of having a market based model for RAM staking?
  • RAM will become more insufficient and lead to a high cost fo RAM
    Some Speculators may drive up the price of RAM
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#83

  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?
    In 3, they could only sell 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?
    Under 3 the model discouraged hanging onto tokens because you always got what you paid,.The free market float allows the market to set the price.

  4. What are the drawbacks of having a market based model for RAM staking?
    The greater the load of developer requests, the higher the demand for the RAM and thereby tokens. If tokens are too expensive for developers, the market will correct, and the price will come down.

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#84
  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 switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.
  3. It prevents RAM hoarding, the articleā€™s example also shows that it is possible to recoup some losses as well.
  4. The price volatility could cause losses if RAM is sold at the wrong time. This, in turn, could lead to RAM hoarding.
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#85

1] When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.
2] EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0
3] Prevents wastage of RAM resources. Staker receives a capital gain from un-staking their RAM.
4] As more dApp developers join the network greater amounts of RAM are required, subsequently driving up the price. This may also cause speculation and hoarding.

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#86
  1. What would happen if a dapp runs out of RAM?
    DApp devs will not be able to carry out certain 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?
    3.0 was a pegged market where token holders can only sell RAM for what they paid, while 4.0 is a market based approach where token holders will be incentivized for unstaking their RAM.
  3. What are the benefits or having a market based model for RAM staking?
    Token holders can be incentivized for unstaking their RAM and providing capacity and efficiency to the system
  4. What are the drawbacks of having a market based model for RAM staking?
    The speculatorsā€™ 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.
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#87

  1. When a dApp runs out of RAM, it cannot store the state and will be frozen in its current state. In other words, the dApp will stop.

  2. In Dawn 3.0, RAM staking worked the same way as staking for the other resources. 1 EOS staked will return 1 EOS when unstaking. With Dawn 4.0, the bancor algorithm was introduced to calculate the amount of EOS returned when unstaking the tokens.

  3. Dawn 4.0ā€™s market based model for RAM staking carries the risk of losing EOS tokens when leaving them staked for a period of time. The benefit is such that it disincentivizes the hoarding of ram, since there is no risk involved in staking the tokens for a long time. Ideally, no unused RAM would be wasted.

  4. The drawbacks of the market based model is that it can incentivize speculation. It might be profitable to keep tokens staked if the price of RAM and/or EOS goes up, so they can be sold at a later time for a profit. In this scenario, the RAM would still be wasted as it isnā€™t being used by the speculator.

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#88

1- Operations are unable to carry out and smart contracts cannot be deployed.

2- Under the Dawn 3.0 system contract, token holders could only sell RAM for the price they paid, just as the other resources. Under Dawn 4.0 the price flutuates according to the spot market.

3- More balanced pricing and reducing hoarding of RAM allocation.

4- 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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#89

  1. What would happen if a dapp runs out of RAM? The dapp would be unable to perform the next set of operations and the smart contract would not 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 the price for RAM was fixed. You could only sell it for the same price as what you paid. In Dawn 4.0, the price is no longer fixed but is subject to free market pricing.

  3. What are the benefits or having a market based model for RAM staking? It provides a financial incentive to the Staker not to hoard RAM as there is a financial incentive to release RAM after use. The market approach leads to a fair and balanced price based on supply/demand.

  4. What are the drawbacks of having a market based model for RAM staking? Some users may decide to just keep holding their RAM to speculate. If the EOS community is unable to scale up the RAM to meet demand there could be large price spikes and much greater volatility. You will have actors in the space who will try to game the system which could hinder future development and growth.

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#90
  1. Some operations will not be able to be run/carry on.
  2. Dawn 4.0 able market price model allocation Vs fixed price paid allocation
  3. It will able more supply and demand equilibrium
  4. If more EOS Dapps developers joins the party, RAM will become more expensive
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#91

1. What would happen if a dapp runs out of RAM?
Some operations wonā€™t be able to be carried out and smart contracts executed

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
in 3.0 RAM was pegged at a fixed value and returned at the same value, in 4.0 the price is free floating

3. What are the benefits or having a market based model for RAM staking?
Prevents hoarding of RAM and the allocation if resources is made more efficient.

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

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#92
  1. Some operations may not be performed and smart contracts may fail to be deployed.
  2. While under Dawn 3.0 token holders could only sell RAM for the price paid at purchase, with Dawn 4.0 it is possible for the system contract to buy and sell RAM allocations at prevailing market prices, making it possible to reach a better market balance.
  3. It would prevent inefficient allocation of RAM resources, as a user would be incentivized to un-stake idle resources in order to receive capital gains and others could be able to use those resources for something else, leading to potential increases in market value.
  4. There are a number of risks, such as the fact that an increased number of DApps developers would lead to shortages in available RAMs thus increasing their price, but also risks of speculation and irrational behaviours from members of the network driven by profit-seeking.
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#93

  1. When there is not enough RAM for a dApp, the following operations are not executed which means the smart contract is not working anymore.

  2. In Dawn 3.0 token holders could only sell their RAM to the price they had bought it. That means there is no financial incentive to unstake their token and sell it (and give free RAM to the market which is a scarce good).In Dawn 4.0 they changed it to a market driven approach which means unstaking your RAM is benefiting because there is a financial incentive to do it.

  3. As I said before with a financial incentive everyone unstake their ram in order to make money. This results in a more efficient allocation of the scarce good RAM.

  4. Anyone who can predict available RAM capacity can speculate with it. This leads to manipulation,

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#94

1.The Dapp will stop running.

  1. 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.

2.More balanced pricing.

4.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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#95

Some operations are failing, so smart contracts will fail as well before they could finish.
2.
Code has been cleaned up significantly. Using new market based allocation.
3.
Gaining capital through un-staking RAM, so freeing resources.
4.
Allocation are not efficient, growing problems(resource limits), RAM inflation.

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#96

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.

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.

What are the benefits or having a market based model for RAM staking?
New market-based approach is to resolve RAM squatting by RAM trading.

What are the drawbacks of having a market based model for RAM staking?
One defect of this is that users who are able to predict the RAM supply can speculate with it.

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#97
  1. What would happen if a dapp runs out of RAM?
  • Dapp functions would malfunction and potentially fail. there could be no execution of smart contracts without sufficient RAM
  1. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
  • With a Dawn 3.0 contact holders can only sell at the same price they paid where as with Dawn 4.0 there is a market based allocation approach by using the Bancor Algo.
  1. What are the benefits or having a market based model for RAM staking?
  • More incentive to sell therefore un-staking their RAM and freeing up resources
  1. What are the drawbacks of having a market based model for RAM staking?
  • Free market attracting speculators and potentially driving up the RAM price unnecessarily
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#98

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?
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. Dawn 4.0 ensures that unused RAM will be freed for other userā€™s benefit and stabilize its cost.**

3. What are the benefits or having a market based model for RAM staking?
Main benefit is that RAM is more available for real users and actual needs**

4. What are the drawbacks of having a market based model for RAM staking?
A drawback might happen when the RAM price on the price happens, this system might incentivize staking RAM with purpose to reselling to third parties (speculation)**

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#99
  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?
    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?
    This encouraged holders of excess RAM to return it to make available for use by others.
  4. What are the drawbacks of having a market based model for RAM staking?
    RAM prices are getting higher as popularity grows which makes it hard/expensive for developers to launch Dapps
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#100

  • 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.

  • 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.

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

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