EOSIO Resource Exchange (REX) allocates resources like CPU/NET to users. However, it became unusable on the EOS Public Blockchain after there came an increased requirements for power and bandwidth. This drained the system of liquidity. Those who tried to access the services during the outrage were denied access.
Supply of resources is crucial for the functioning of the EOS Public Blockchain. REX had issues in being able to cope with the large demand. They did not have a way to allocate resources to new borrowers, but only half of the blockchain total capacity was used. Something has to be changed about the way REX used the resources.
Block.one are therefore proposing a new REX system which will establish a resource rental market. Per the new proposed system, the user will pay the resource a rental fee through the smart contract. About 30 days’ worth of CPU/NET will be allocated from the total resources. The rental will be renewed every 30 days with the price adjusted to market conditions considering the supply and demand for the resources.
Users will stake tokens under this proposed resource model. Rather than receiving CPU/NET resources proportionate to staked tokens, users who stake to REX will get certain fees from name the auctions, RAM fees, and also proceeds from CPU/NET rentals.
The purpose of this new model is to remove the influence of speculative markets over the resource pricing. It is considered that introducing that a rental market with pricing that is based on the overall resource utilization will make the resource allocation more predictable and reliable for the users.
In this regard, Sydney Ifergan, the crypto expert tweeted: “The new Resource Model Proposal from Block.one EOSIO is expected to stabilize the CPU/NET market place to accurately reflect supply and demand for resources. Makes sense! Practical.”
To operate smoothly, EOSIO app developers and users should have consistent access to resources with predictable pricing. Block.one states that they are proposing these changes to the REX system in a way to reduce systemic waste and to improve its scalability with enough CPU/NET to meet with the growing needs of the network.
When there is a spike in resource utilization, the adjusted utilization will follow the same rate of increase like instant Utilization, and the price will increase in real-time to prevent the CPU/NET supply from being exhausted.
The new resource allocation model is set to be further refined with time. Block.one developers are willing to take feedback to work closely with their team to improve EOSIO for developers.
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