EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#162
  • What would happen if a dapp runs out of RAM?
    It stops running
  • What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    It moved to a more market-price based approach.
  • What are the benefits or having a market based model for RAM staking?
    Price is based on demand.
  • What are the drawbacks of having a market based model for RAM staking?
    You can de suprised about the cost because of market fluctuations.
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#163
  1. What would happen if a dapp runs out of RAM?
    Some of the applications of the dApp can still be functional, however the ones which are dependent of RAM will not, for example new smart contracts will not be deployed in the network.
  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. On Dawn 4.0, the price of the token fluctuates, as the approach is market-based using the Bancor algorithm.
  3. What are the benefits or having a market based model for RAM staking?
    It brings more efficient in the process of RAM allocation, bringing incentives to users for selling staked RAM and allowing other functionalities to use it.
  4. What are the drawbacks of having a market based model for RAM staking?
    With more contributors to the development of the dApp, RAM can get more expensive and therefore its price can be speculative.
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#164

  1. Some operations will not be carried out and smart contracts would not deploy.

  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. EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.

3.More balanced pricing.

  1. RAM becomes more expensive.
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#165

  1. What would happen if a dapp runs out of RAM?
    Then some operations are unable to complete 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. While Dawn 4.0. is a market-based allocation approach

  3. What are the benefits or having a market based model for RAM staking?
    With the market-driven model, encourage dApp developers to un-stacking their RAM and receive capital gain from un-staking their RAM

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

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#166
  1. The smart contract wouldn’t deploy
  2. The Staker would recieve the same value of EOS token Instead of the Number of Tokens he initially staked
  3. The Staker may recieve more EOS tokens from what he locked up if he is patient enough
  4. If you decide to claim back your EOS now, there is a chance you’ll recieve less EOS due to the value change.
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#167
  1. The transaction within the dapp will not execute
  2. Changing the pricing mechanism from a fixed exchange of EOS/kb to a dynamic market based pricing.
  3. You incentivize users on RAM not to hoard it and use it as efficiently as possible.
  4. As demand grows for RAM given the fixed amount the price can increase too much . Irrational behavior such as speculation or RAM hoarding could increase price too much as well.
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#168
  1. when app runs out of RAM, some operation are unable to be carried out and smart contract cannot be deployed.

2.Under Dawn 3.O, the exchange rate between RAMEOS were pegged and Dawn 4.0 has a market based allocation.

3.The benefits of having a market base model for Ram staking are more efficient allocation and reducing blanced pricing.

4.Drawbacks of having a market based model for RAM staking is that speculations and manipulation of RAM prices which will direct the Ram capacity insufficient and higher price.

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#169
  1. Operations can’t run, smart contracts can’t be deployed
  2. 4.0 switched to a market price-based method for staking EOS tokens to get RAM
  3. Improves efficiency, provides incentives for people to not hold onto RAM if EOS prices go up
  4. Incentivizes speculation, RAM prices rise
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#170

1.When a dApp runs out of Ram the smart contract cannot be deployed/executed
2. The change when moving from Dawn 3.0 to 4.0 was that the RAM market got “liberated” so that it was subject to market fluctuations and useage. In cases of high demand, price would go up, vs quieter moments when price of RAM would go down
3.The benefits of market based RAM is that is is self-stabilizing the network. In case of high demand prices will go up, which will reduce the demand due to people setting limits on that they are willing to pay… once the price goes down, activity will revert back.
4.The drawback is that EOS token holders carry the exchange rate risk in case RAM goes up, giving a factor of unpredictability and… in case margins are to tight… risk of non-execution of the contract.

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#171

  1. If a dapp runs out of RAM some actions will not be carried-out and smart contracts will not be deployed.

  2. The change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market was that in Dawn 3.0 holders could only buy and sell RAM for the same price and in Dawn 4.0 the price of RAM fluctuates.

  3. The benefits of having a market based model for RAM staking is that people are more willing to free-up unused resources for those who wish to use them.

  4. The drawbacks of having a market based model for RAM staking is that there is a likelihood of hoarding and speculation, making resources more expensive for developers.

1 Like
#172

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?
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. Concrete, a switch to a market based allocation approach rather than the price paid approach.
What are the benefits or having a market based model for RAM staking?
More balanced pricing and reducing hoarding of RAM allocation.

(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?
As more developers for dApps join the RAM will be more expensive.

(The lack of market mechanism causes some allocation efficiency problems).

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#173

  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.Dawn 4.0 is market-based allocation approach, RAM “trading” a stake and un-stake activity.

  3. What are the benefits or having a market based model for RAM staking?
    Ensures that the free market is setting the price
    Disincentivize hoarding and speculation of RAM

  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

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#174

  1. What would happen if a dapp runs out of RAM?
    some operations would be unable to be carried 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?
    in Dawn 3.0 system contract, token holders can only sell RAM for the price they paid.
    With Dawn 4.0 the changed to a market-based allocation approach using the Bancor algorithm.

  3. What are the benefits or having a market based model for RAM staking?
    motivation to un-stake the RAM through capital gains

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculation on the price and block the RAM capacity

1 Like
#175

EOS RAM Allocation - Reading Assignment

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

  • As the Eos dApp developers use RAM. RAM is a precious resource to their development of dApps.
  • Storage of application state will require a dApp developer to ensure there is enough RAM until that state is deleted.
  • 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?

  • 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.

  • For the older version where the exchange rate is pegged, the upside is to disincentives hoarding and speculation, as no extra EOS could be gained by merely buying and selling RAM: you always get what you have paid.

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

  • It is mean to address the supply and demand issues of RAM, the new Bancor Algorithm system should provide more balance over time in terms of supply and demand of RAM allocations.

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 behaviour 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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#176

1)What would happen if a dapp runs out of RAM?
the dapp/smart contract can not be executed

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?
the upside is to disincentivize hoarding and speculation,
incentivice to unstake EOS for RAM when EOS market value is increasing

  1. What are the drawbacks of having a market based model for RAM staking?
    also RAM prices could increase, higher staking price to use RAM
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#177
  1. dapp stops running
  2. DAWN 4 allows the value of EOS staked for RAM when the market value of EOS is increasing
  3. incentive to stake eos for Ram
    4)speculation and manipulation
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#178

Excellent answers sir, well documented! Please keep them like that :muscle:

Carlos Z.

#179

  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. For the older version where the exchange rate is pegged, 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. With the market-driven model, one can receive capital gain from un-staking RAM, and therefore making willingness to free the resources more attractive.

  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. Also, 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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#180

1: The operations will not be completed

2: It uses the Bancor algorithm to price the the cost of RAM making it market based as opposed to before when the price was fixed

3:Discourage hoarding and a beter price for users

4: It could cause hoarding of RAM

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#181

[quote=“filip, post:1, topic:6436”]

  • What would happen if a dapp runs out of RAM?
    If a dApp runs out of RAM some operations cannot be completed and the smart contract cannot be deployed.
  • What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market? In Dawn 3 you could only sell RAM at the price you bought it for , with Dawn 4 it started to use the Bancor Algorythm
  • What are the benefits or having a market based model for RAM staking?
    The advantages are that is discourages hoarding, you can get financial rewards and it frees up unused RAM
  • What are the drawbacks of having a market based model for RAM staking?
    The disadvantage are RAM prices are unpredictable and can rise significantly and some people could HODL and not release the RAM
1 Like