This article was first published on eosio - Medium
Recently the EOSIO Resource Exchange (REX) that allocates resources (CPU/NET) to users became unusable on the EOS Public Blockchain after spikes in demand for processing power and bandwidth drained the system of liquidity. During the outage, borrowers who attempted to get access to these resources were denied service.
Resource supply for the EOS Public Blockchain on REX highlights a general issue with the resource allocation model; despite a large demand, most of the network’s resources are going unused. REX was managing around 30% of the network’s total CPU/NET and ran out of resources to allocate to new borrowers. Meanwhile, only a small percentage of the remaining 70% of the network’s resources were actually being utilized, evidenced by the fact that less than half of the blockchain’s total capacity was being used.
In light of this situation, we’re proposing a potential change to the way the current REX system operates that would establish a resource rental market. Under the new proposed system, a user will pay a resource rental fee via a smart contract to be granted 30 days worth of CPU/NET from the total supply. After 30 days the rental must be renewed and pricing is automatically adjusted using a market based mechanism, based on changes in supply and demand for CPU/NET resources.
Users will still be able to stake tokens under this proposed resource model. However, instead of receiving CPU/NET resources in proportion to staked tokens, users who stake their tokens to REX receive certain fees from name auctions, RAM fees, and proceeds from CPU/NET rentals.
The objective of proposing a transition from a resource entitlement model to a leasing or rental model is to remove the influence of speculative markets over resource pricing. Introducing a rental market with pricing based on overall resource utilization will make resource allocation more predictable and ...
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eosio - Medium