EOS RAM Market – How Does it Work? Bancor Algorithm

We’ve noticed recently that a lot of
people have been asking questions about how RAM works on the EOS Network so we
thought we’d set aside a second to talk about this now as you probably already
know for every iOS token that you own you’re entitled to a certain amount of
resources on the EOS Network for example if you own about 1% of all the EOS
tokens out there you’re entitled to about 1% of the EOS network bandwidth
and about 1% of the EOS processing power or CPU you also get a little bit of RAM
now because this resource in particular is so precious block one decided to
treat this a little bit differently you see the EOS software sets aside a
special pool of RAM from which anyone can buy or sell more ram at any given
time. dApp developers in particular need RAM to store data that needs to be
quickly accessible by their apps. You also need RAM anytime you want to
create a new account on the EOS network. Now this RAM pool uses a special smart
contract that automatically decides the price of RAM and it’s based entirely
on how much of the network RAM is available. if there’s a lot of network
RAM available then the price of Ram is relatively cheap but if there’s only a
little bit of RAM left then the price of RAM is expensive… so much so that as the
amount of available Ram the network approaches 0 the price of Ram approaches
infinity… yeah that’s a big number. Now a smart contract uses something called the
bank or algorithm which is essentially a way to always have liquidity in any
given market so there’s always gonna be some RAM available and because of the
smart contract that automatically executes you don’t have to wait for
someone on the other side to sell you RAM or vice versa you can always buy or
sell RAM from the network itself, all that being said the RAM market is this
really interesting separate market that exists on the eos network and just
something else that makes the EOS Network a really unique smart
contract Platform. There’s a really cool tool that EOS New York puts out called
the EOS resource planner, there you can see the current price of RAM and you can
also see how much of the network RAM is available at any given time. We will include that link and some other useful resources in the links below as always
if you have any questions you can hit us up on telegram or you can drop a comment
in the chat below.

Tags: , , , , , , , , , , , , , ,


  • Lawrence says:

    Great video Shaheen! This ram market is extremely interesting.

  • Blockchain Expert says:

    Is it possible to sell used RAM ?

  • Alberto Guerrero Montilla says:

    Great video guys!

  • HTongya says:

    wrong info, owning eos gives nothing, one needs to stake eos for resources i.e cpu and network

  • Mark Austin says:

    Great video! I love using the Bancor Network, 1 question isn't the for RAM trading cost set at %1 to offset the 0.75% inflation the BP's receive ?

  • Henrik Ask says:

    Thank you. Just found your channel. I have some questions. When ONO launch on EOS will the users of ONO need a separate account on EOS Blcokchain and hence allocate RAM? If the "network" decides to broaden the RAM has does this work and how long does it take? Thanks

  • Dave Popa says:

    Bought some Ram and sold a couple days later. How long should it take for Ram profits to show up in acct. Will this be shown in Scatter, EOS Flare, and or EOS Tool Kit
    Thank you for the helpful videos. Look forward to watching

  • Patrick Ryan says:

    How much ram do I have to sell with 10 tokens and what if I sell the tokens? Does the ram I sold get taken back? I don't understand how they are linked?

  • Sukasah Syahdan says:

    like ur videos a lot. just subcbed. pls keep 'em coming.

  • substation says:

    Dan Larimer made these 3 comments about RAM …can you explain any of them?
    You consume ram while unstake
    In 3 days you get ram back
    RAM fees are currently making EOS deflationary as more EOS is taken out of circulation than put into circulation.

  • Martha Davis says:

    Great video!

  • Nat says:

    1. Where does the initial connector balance for the RAM market come from? In other words, doesn't the RAM market and bancor algorithm require an initial EOS balance.

    2. If so, was this initial balance created/added to the total EOS market cap at the network's inception? If you look at the system contract, there's an area for creating the RAM market. It shows creating 100 trillion "RAMCORE" tokens as well as creating:

    m.quote.balance.amount = system_token_supply / 1000;

    Which I interpret to be the total EOS Supply + inflation. So essentially 1M EOS (1B EOS / 1000 = 1M EOS) that was created with the name "RAM" then updated to the CORE_SYMBOL namespace (EOS):

    m.quote.balance.symbol = CORE_SYMBOL;

    Lines 24 – 39: https://github.com/EOSIO/eos/blob/master/contracts/eosio.system/eosio.system.cpp

    Thank you

  • info GBSemi says:

    Great video and ,thanks. I am just now voting and will vote for eosBlockSmith.

  • Auli Sicarii says:

    With RAM prices reaching new heights and turning into a market within a martket it looks like Bancor has a great proposition of a revision to the current model. Any thoughts?

  • Anupam Shah says:

    Will vote for you

  • Juni LEE says:

    Dan has advised that the Ram can only be added at a very slow predictable rate in, so in that regard, there isn't the worry/issue of Ram price manipulation that way. However it is true that the BPs/Developers/Whales could potentially collude to pump and dump Ram.

    I guess in a purely free market economy (i.e. not striving for a democratic-socialism/capitalistic balance), then ethics naturally won't be a part of the equation at all.

    If the system can be rigged by the powerful, they will almost definitely do so in a free market to turn it into a "free market" purely for their own sustained benefit instead. i.e. the rich getting richer.

    Hence I'm not really too surprised given that EOS is based on a strong libertarian ideology and goal; rather than a code-driven democratic socialism guided capitalistic economic ecosystem. Hence, it is either we go along with the flow that the whales sets, or we get squashed.

    Although, Dan did gave an explained the rational of favouring a high Ram price to weed out the "lower-grade" projects and potential scams at the early stage of the network, that could be found in interviews and open BP online meetings available on Youtube.

  • controllinghand says:

    more of these please. Love it!

  • E P says:

    How much EOS Ram should I have in my wallet in order to receive airdrops?

  • JCAMHS D says:

    Is ram same as gas at eth network?

Leave a Reply

Your email address will not be published. Required fields are marked *