Understand EOS PowerUp Model in 3 Mins
The EOS PowerUp Model is proposed by Block.one in December 2019 to provide an alternative solution to the EOSIO-based public blockchain to solve resource issues. At present, 39 tech organizations including TokenPocket have responded to the EOS PowerUp Model proposal. TokenPocket wallet is currently preparing a new version to adapt to the EOS PowerUp Model. You can experience the new features of EOS PowerUp Model by using Token Pocket. According to the estimated test progress, the EOS PowerUp Model is expected to be launched in mid-December.
In order to help community users quickly understand what the EOS PowerUp Model is and what changes it can bring to us, we will interpret it from the following four aspects:
- The defects of the current EOS resource model
- The improvement of the EOS PowerUp Model
- How would the main network transit to the EOS PowerUp Model
- The optimization of the price curve of the EOS resource leasing market
Note:
- The core of the EOS PowerUp Model is [Resource Rental Market]. Although its role is similar to the current REX, but don’t get confused about them!
- The resources in this article refer to CPU/NET resources. CPU is a computing resource in the EOS network. All transactions between EOS accounts and calling for smart contract need to consume the CPU resources of the account. NET is the EOS network bandwidth resource. When we initiate a transaction, the block producer needs to pack the transaction to the block, and then synchronize the block to other producers through the network. This process requires a certain amount of network bandwidth resources.
- REX (Resouruce Exchange) is a solution proposed by BM in August 2018. Users can stake EOS in REX, rent them out to those who need to purchase resources, and get income from this; resource renters can get a lot of resources with less EOS.
Defects of the current EOS resource model
1. The usability of REX is not high. Once the lease ratio approaches 80% (the limit set by the system), the available resources are run out and can be leased no more.
2. The resources of the EOS mainnet cannot be fully utilized. The total amount of EOS in the current REX pool is about 100 million, less than 10% of the total amount of EOS. Except for the part that in REX, the resources of the remaining 90% of EOS (staked/unstaked by users ) have not been used effectively.
Say an EOS whale user staked a huge amount of EOS, and got 10% CPU/NET resources of the entire network, but he absolutely cannot use this much resources, and the rest resources cannot be put into use effectively.
Improvements to the new resource model
- Make full use of CPU/NET resources
●Unify the supply channels of CPU/NET resources (resource leasing market): In the current resource model, users can either lease resources through REX or get resources by staking EOS, As we mentioned in the above example, the resources corresponding to the part of self-stake EOS (or not participating in the staking at all) may be the main part of the underutilization.
● Therefore, in the new resource model, the resource leasing market is the only way to get CPU/NET resources. Users cannot stake eos to obtain resources by themselves. To get resources, they must lease through the resource leasing market;
● At the same time, token holders can stake unused EOS to the resource leasing market to obtain income; EOS official team will share the income of three parts: premium account auction, RAM transaction fees, and CPU lease income with EOS stakers, similar to the current REX income model.
2. Compared with REX, the resource leasing market will have higher usability
Once the current REX lease ratio approaches 80%, the available resources are run out and no more leases can be made.This problem won’t occur in the resource leasing market of the new resource model. The resource price in the resource leasing market depends on the supply-demand relationship. When the resource utilization ratio is low, the price will be cheap. Even when the resource utilization rate is extremely high, the resource leasing market can function normally, only the price will increase exponentially in this situation.
How does the EOS PowerUp Model transition work
1. In order to push the transition from the current REX model to the resource leasing market in the new resource model, a smooth transition can be achieved by gradually adjusting the resource ratio parameters allocated to each account;
2. If other conditions are the same, by slowly adjusting the parameters, the resources obtained by staking/renting the same EOS will gradually decrease, so as to push users to use the resource leasing market;
3. At final step, resources can’t be obtained by staking EOS, REX can’t be leased. All the resource supply and acquisition of the EOS mainne will occur in the resource leasing market.
PowerUp Model Lease Price Curve
If you understand the above content, you have already understood the defects of the current EOS resource model and the improvements of the new resource model. However, there is an optimization in the lease price curve of the EOS PowerUp Model that is worth mentioning separately.
(Leasing price curve of the EOS PowerUp Model)
Compared with the current resource price calculation of REX, the price calculation of the resource leasing market has been optimized, namely:
When a large number of leases expire, that is, when the resource utilization rate drops, the lease price will not immediately decrease proportionally, but will decrease slowly within a certain period of time (as shown in the red circle above).
The advantage of this is to ensure a certain degree of fairness. Currently, like REX, there are many users with high resource requirements who will use certain methods to grab these redemption points in order to obtain cheap resources. And ordinary users cannot compete with them.
In the resource leasing market in the new resource model, there are two types of resource utilization:
- InstantUtilization
- Adjusted Utilization
When the utilization rate rises, the two utilization rates increase at the same rate, so in the above figure, the two utilization rate curves overlap; when the utilization rate falls, the instant utilization rate is the actual utilization rate, so the curve will drop sharply. However, the adjusted utilization rate will drop gently within a certain period of time.
Conclusion
To put it simply, after the EOS PowerUp Model launched, users can obtain EOS resources + rental income by staking EOS. With the EOS Mainnet’s adjustment to the two parameters’ ratio, the resources obtained by users will gradually decrease, while the rental income will increase. In the end users can no longer obtain resources through staking EOS, but can continue to obtain lease income by staking EOS. This process is expected to take a certain amount of time. Before the new EOS resource model completely replaces the old ONE, users can still obtain resources by staking EOS.
EOS PowerUp Model Discussion Telegram:
EOS PowerUp Model Proposal:
https://eos.io/news/eosio-resource-allocation-proposal/
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