EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#192

  1. What would happen if a dapp runs out of RAM?
    Some operations would not not be able to be carried out and smart contracts would not be deployed.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 could only sell RAM for the price that was paid whereas Dawn 4.0 is market based using the Bancor algorithm.

  3. What are the benefits or having a market based model for RAM staking?
    Can unstake if there is unneeded RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    Token holders bear the exchange rate risk. between RAM and EOS.

1 Like
#193
  1. Then the dApps cannot carry out the contract.
  2. on Dawn 3.0 the RAM only could be sold at the same price it was bought, while Dawn 4.0 is market driven.
  3. The benefit comes from un-staking RAM, the owner get some gains for it and frees RAM resource for the other participants.
  4. it can cause speculations and price increase. Also waste of RAM resources if the stakers are not motivated to un-stake and free RAM.
1 Like
#194

  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. Dawn 4.0. is a market-based allocation approach using the Bancor algorithm.

  3. The benefits for having a market based model for RAM staking is efficient RAM allocation where a developer can receive capital gain from un-staking his/her RAM, and therefore willing to free the resources.

  4. The drawbacks of having a market based model for RAM staking:

  • RAM is more expensive due to high demand from developers;
  • Irrational price speculation which threats the advancement in network development.
1 Like
#195
  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. With the market-driven model, users can receive capital gain from un-staking their RAM, and therefore willing to free the resources.
  4. as more dApp developers join, and more data is needed to be stored for a long time, more RAM used is extracted out of the market, making RAM more and more expensive.
    Irrational behavior of speculators on RAM will likely push RAM prices high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem.
1 Like
#196

  1. What would happen if a dapp runs out of RAM?
    When the dApp runs out of RAM, it cannot carry out all of its 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?
    In Dawn 3.0, users could sell RAM for the price they paid. In Dawn 4.0, users are charged a 0.5% fee when buying RAM and 0.5% when selling RAM.

  3. What are the benefits or having a market based model for RAM staking?
    Charging fees for RAM staking means users would be more careful and stake when they really need it. This promotes efficient use of the limited 64 GB network RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    RAM becomes more expensive as more dApp developers enter the market; speculators may drive up the price and cause a waste of RAM resources.

#197

A post was split to a new topic: Unstake Ampl from the geyser

#198

  1. some operations used/needed by the dapp would not be carried out and smart contracts could not be deployed

  2. dawn 3.0: token holders can only sell RAM for the price they paid. Problem: there might be lots of unneeded RAM blocked and unsufficient RAM available for new developers/projects
    dawn 4.0: token holders now can sell their RAM at market price, since dawn 4.0 is a so-called market-driven model.

  3. The token holder can finally receive capital gain from un-staking his RAM.

  4. However, also in this model there are problems, such as rising development costs due to speculation. Indeed, taking a look at some recent news, high development costs seem to have become a big problem on EOS.

1 Like
#199

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

3 With the market-driven model, un-staking unused RAM is incentivized, this making the whole system more efficient.

4 As more dApp developers join, RAM could become more and more expensive. The speculators’ irrational behavior on RAM could push RAM high, making it expensive for dApp developers to buy the resources they need, and thus deteriorating the ecosystem. There could large amount of RAM unused due to the speculation, causing a waste of RAM resources.

1 Like
#200

HI @CSquared

I ll move this topics as it is supposed to be for EOS assignments :slight_smile:

2 Likes
#201

Thanks Gabba. By the way @gabba @ivan @amadeobrands i would like to provide a potential substantial employment opportunity to a suitable developer in the academy. Where can i place the details in the academy?

#202
  1. What would happen if a dapp runs out of RAM?
    -DApp will stop running
  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    -Dawn 4.0 allows for RAM to be sold at market rate
  3. What are the benefits or having a market based model for RAM staking?
    -If RAM price is high, there will be pressure to sell(for profit) if you don’t use ram
  4. What are the drawbacks of having a market based model for RAM staking?
    -Speculation, when price is low, one would buy expecting to sell at profit when price rises.
1 Like
#203

  1. What would happen if a dapp runs out of RAM?
    – If a dApp runs out of RAM then some operations are unable to be executed 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?
    – The change was from a fixed price model in Dawn 3.0 to a market based model in Dawn 4.0

  3. What are the benefits or having a market based model for RAM staking?
    – The market based model allows RAM to be freed-up by giving holders an incentive to un-stake their RAM and earn more EOS than they initially spent for the stake if the price of EOS increases.

  4. What are the drawbacks of having a market based model for RAM staking?
    – The market based model for RAM staking can foster speculation which can cause RAM to be locked up and unused as that can drive the price up. It can can also cause volatility in the market among the currencies involved in the exchange (buying and selling) of RAM

1 Like
#204
  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, the system frees up the resources.
  4. 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.
1 Like
#205
  • 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?
    In Dawn 3.0 token holders could only sell RAM for the initial price. In Dawn 4.0 token holders can sell at the market price.
  • What are the benefits or having a market based model for RAM staking?
    Users buying tokens at a low price and staking will have no interest in selling the RAM in the future when the token price is much higher. In order to incentivize the stakers to unlock the RAM and sell it, a market price is much more suitable and the RAM will not be wasted.
  • What are the drawbacks of having a market based model for RAM staking?
  1. 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.
  2. 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.
1 Like
#206
  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, users 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?
  • 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.
1 Like
#207

What would happen if a dapp runs out of RAM?

Some operations are unable to carry out and smart contracts can’t be deployed.

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

The switch was to a marked-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 benefit is more balance and over time keep the supply and demand of RAM allocation.

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

This creates a RAM speculation, and these speculation makes RAM more expensive.

1 Like
#208

  1. What would happen if a dapp runs out of RAM?
    Some of it’s operations fail 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 sell RAM for the same price they originally paid, but under the Dawn 4.0/Bancor algorithm, the price is variably based on the market.

  3. What are the benefits or having a market based model for RAM staking?
    It gives developers an incentive to sell their RAM for capital gains, thus freeing up resources.

  4. What are the drawbacks of having a market based model for RAM staking?
    As more developers join, RAM is needed, so the prices for RAM get more expensive.

1 Like
#209
  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?

Letting the price of RAM float around offer/demand

  1. What are the benefits or having a market based model for RAM staking?
  • If you project fails, you can sell your EOS at current market price.
  • More projects would want to Join as this diminishes the risk
  • Reduce hording and optimize price
  1. What are the drawbacks of having a market based model for RAM staking?
  • It could be too expensive to deploy/run a project if EOS goes to the Moon.
  • People would HODL
1 Like
#210
  1. dapp will not continue to run as some operations will fail or not be carried out
  2. dawn 4 allows for RAM to EOS market rate to move always closer as it uses a market based allocation approach
  3. theoretically better RAM utilization and balanced pricing of assets
  4. people will hoard RAM as EOS price rises, which will in effect not be used or even freed up for use, making dapps not run anymore and collapse the ecosystem
1 Like
#211
  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?
    Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid, just as the other resources. Now it is dependent on the market rate.
  3. What are the benefits or having a market based model for RAM staking?
    It allows all apps to have access to the same prices, therefore making it more fair.
  4. What are the drawbacks of having a market based model for RAM staking?
    It can be subject to speculation and manipulation. People can have ram and speculate on its price, thereby pushing the RAM costs higher than otherwise.
1 Like