EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#121
  1. When RAM is insufficient for a dApp, some operations are unable to carry out, and smart contracts cannot be deployed.
  2. The significant 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 like the other resources.
  3. The lack of market mechanism causes some allocation efficiency problems. RAM resources will be wasted as a result of inefficient allocation. With the market-driven model, one can receive capital gain from un-staking his RAM, and therefore willing to free the resources.
  4. Challenge 1. 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.

Challenge 2. 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. There is a large amount of RAM, due to the speculation or other reasons, which are unused, causing a waste of RAM resources.

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#122

  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.
    (Stops running)

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    EOS switched to a market-based allocation approach in Dawn 4.0

  3. What are the benefits or having a market based model for RAM staking?
    Optimize the mechanism for managing the Ram via the economy.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation could impede EOSā€™ development by raising the cost of RAM through speculation (Holding).

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#123

  • What would happen if a dapp runs out of RAM?
    The operation will stop and some smart contracts may not be deployed.

  • 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, 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?
    More long term stable prices.

  • What are the drawbacks of having a market based model for RAM staking?
    Less stability, more fluctuation, manipulation and speculation.

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#124

  1. If a dapp runs out of RAM, some operations will be stopped from being carried out and smart contracts would not be deployed.

  2. They went from a ā€œprice paidā€ approach over to a ā€œmarket based allocationā€ approach.

  3. It will reduce hoarding of RAM not needed and a more balanced pricing of RAM on the market.

  4. The more developers who create dapps, the more RAM is being used/needed, and then the price of RAM would increase.

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#125
  1. the dApp becomes useless/unreliable as it will not be possible to fulfill all operations and its smart contracts cannot be deployed
  2. Dawn 4.0 encourages to redistribute their unused memory by a supply and demand pricing model.so we may expect higher prices at times of increased RAM demand, so the price goes so the price goes to infinity before the system runs out of RAM."
    3)balanced suppy and demand for RAM resources
  3. it animates to speculate on rising or falling prices as there is no pegged exchange rate between ram/eos und he has no incentives to unstake his (valuable) RAM
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#127

there is no memory available for computation thus the contract is voided

RAM moved to a market price

Incentivises the freeing up of staked RAM by a refund

speculation can affect RAM availability

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#128

  1. The Dapp will stop running.

  2. Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid, just as the other resources. While under Dawn 4.0, EOS switched to a market-based allocation approach using the Bancor algorithm.

  3. It prevents hoarding and the market based model stimulate people to sell off their staked RAM.

  4. RAM will become more expensive as more users will join in.

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#129

1.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.With the market-driven model, you can receive capital gain from un-staking your RAM, and therefore willing to free the resources.
4. RAM rises in prize and speculation is encouraged.

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#130

  1. Some functions would not be carried out and smart contracts wouldnā€™t be deployed.

  2. Dawn 4.0 is market-driven. In Dawn 3.0 token holders can only sell RAM for the price they paid.

  3. It corrects some allocation inefficiency problems by incentivizing un-staking RAM, and thus freeing up resources.

  4. It incentivizes speculation and can push the price of RAM expensive for developers to buy the resources they need, and thus can deteriorate the ecosystem.

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#131

1 What would happen if a dapp runs out of RAM?
If a Dapp runs out of RAM parts of or the whole Dapp would seize to function.

2 What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
Dawn 4.0 the market driven model allows for unstaking RAM to be incentivized through the opportunity of capital gains. Dawn 3.0 was you just sold RAM for the same price you bought it at.

3 What are the benefits of having a market based model for RAM staking?
The benefits are the incentivized approach to free up RAM in order for resources to be both efficient and sufficient for the running of the ecosystem and to maintain equilibrium.

4 What are the drawbacks of having a market based model for RAM staking?
The drawbacks of the amount of supply mechanism of EOS and RAM when transacting between the two within the the market model can cause RAM to become very expensive as more developers in particular join the platform. However, there are various updates such as rate of RAM increase and lowering the minimum requirement of EOS tokens for RAM to combat such a situation. I believe this is an ongoing research/implementation for EOS just as the scalability isue is for Ethereum.

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#132
  1. If a dapp runs out of RAM, smart contracts cannot be deployed
  2. The RAM market switched to a market-driven one from V3 to V4
  3. RAM is not horded and this is done by having a financial incentive to un-staking EOS
  4. The price of RAM contines to go up with network usage
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#133
  1. What would happen if a dapp runs out of RAM?
    some of the operations are unable to be carried out and smart contracts cannot be deployed; storage of application state will require the developer to ensure there is enough RAM until that state is deleted.
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    with Dawn 3.0 token holders could only sell RAM for the price they paid. With Dawn 4.0 it was switched to a market-based allocation approach
    3.What are the benefits or having a market based model for RAM staking?
    the potential to receive capital gains from un-staking your RAM and freeing up the resources
    4.What are the drawbacks of having a market based model for RAM staking?
    as the price rises there is no incentive to un-stake (greed) until evidence it may be coming back down
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#134
  1. Smart contracts cant be deployed due to operations that cant execute/process.
  2. Dawn 3.0 Token holders could sell Ram for the priced they paid.
    Dawn 4.0 Work on Bancor trading algorithm which is more market based. Which means it can be higher or lower than when they staked their tokens.
  3. The market incentives the user to Free the RAM ,rather than to hoard it.
  4. As dApps develop and demand for Ram get moreā€¦the pricing will increase. This might stop developers from using EOS in time.
    Speculators holding on to RAM or speculating on future shortage can push pricing upā€¦making it too expensive and uninviting for developers and therefore destroying the ecosystem.
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#135

Excellent answer sir! really well documented! keep it like that please! :muscle:

Carlos Z.

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#136

Much appreciated. Thank you very much and will definitely aim to :slight_smile:

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#137
  1. The DApp would no longer work properly as various functions may not be able to execute appropriately .
  2. Previously with Dawn 3.0, and exchange rate of RAM to EOS was pegged being the same as when holder initially converted EOS to RAM whereas with DAWN 4.0 approach the pegged was removed so that the price of RAM fluctuate based on market forces of demand and supply
  3. Greater efficiency in RAM utilisation. The increase in RAM price potentially incentivised developers with poor performing underutilized DApps to exit their RAM stake while being compensated by the RAM exchange price.
  4. It lead to steady increase in the price of RAM due to the number of developer and overall limit of 64Gb for the entire eco-system. This could lead to undue pressure resulting from speculation in RAM prices not resulting from the developer usage of the EOS eco-system
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#138

Excellent answer sir! really well documented! keep it like that please! :muscle:

Carlos Z.

1 Like
#139
  1. What would happen if a dapp runs out of RAM?
    The dApp will not longer be able to use and stops running
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    switch from a price paid approach to the market based approach
  3. 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.
  4. What are the drawbacks of having a market based model for RAM staking?
    More users may drive up the prices or RAM due to scarcity
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#140

Thanks! Hi @filip @ivan @amadeobrands now that iā€™ve managed to get to the end of this course, DeFi 101 and two of the other course in the academy, i would love some tips if you have any on how to optimise getting a job / contract as an Business Analyst in the space especially with my experience in Banking and Finance. any tips would be much appreciated. :slight_smile:

2 Likes
#141

Hello sir, congratulations on finish the amazing course, be proud of yourself! :partying_face:

Remember that we have a course that can help you to get tools to start looking for a job:
The essential blockchain job search guide.

Hope you find this useful. :slight_smile:

If you have any doubt, please let us know so we can help you!

Carlos Z.