Dan Larimer Proposes EOS Resource Distribution for Better Efficiency

The EOS ecosystem is experiencing a record number of transactions, but spam and efficiency issues surfaced in the past days.

For EOS token owners, the assets alone cannot stale idle indefinitely, and may, in fact, be redistributed. Each EOS owner also can have claims on a fraction of the digital asset, in the form of CPU power. Daniel Larimer has suggested EOS owners could lend their tokens and allow other entities to use their bandwidth access:

"Token holders can lend their EOS at a fee in exchange for some loss of liquidity for the duration of the loan. There is no risk of losing capital to the lender."

He suggested that the loan does not bear financial risk, as it is just a technicality, for the sake of using the appointed CPU power.

The EOS wealth distribution reveals a prevalence of whales, and in the end, significant resources may be required to run distributed apps. Hence, Larimer proposes a marketplace solution to efficiently use the available EOS IO bandwidth. He suggested the creation of a resource exchange:

"A EOS holder can lend their tokens to the Resource Exchange and will receive REX tokens for their EOS at the current book value of the Resource Exchange. The REX will generate fees by lending the EOS which will increase the book value. At any time the holder of REX tokens can convert REX back to EOS at book value."

This scheme starts to look similar to that of Steem, where staking is a significant form of earnings. However, the time periods of staking are different. In any case, for the Steemit ecosystem, staking meant access to intangible resources, namely reputation, and voting power, while for EOS, the lending or staking will lead to direct access to computer power.

For the other network resource, RAM usage, the market principle has led to a market that has allowed wild speculation and hoarding. This led to the increase in RAM prices to more than 0.8 EOS per kilobyte. Now, the price has increased somewhat to 0.18 EOS per kilobyte.

The EOS market price itself has received accusations of manipulation in various forms, from deliberate pumps during the daily auctions, to other forms of manipulation by Tether (USDT). After the most recent market shakedown, EOS slid down a net 15% to around $7.0 in the past week. USDT trading expanded to 45% of volumes, based on data by Cryptocompare.

The value of EOS may find new pressures, if used in a complex marketplace for computing resources. In a way, EOS would transform into a utility coin, comparable to the need to have Ethereum for transaction payments.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.