EOSIO Tables New Proposal to Prevent Network Congestion & Purchase of Blockchain Resources
Developer of EOS blockchain and native cryptocurrency EOS, EOSIO, has tabled a key modification to the network’s resource assignment method that would necessitate users to hire network resources.
As per the blog post made on December 21 by EOSIO, the supposed modifications intend to prevent network jam created by the ineptness to deploy unutilized Central Processing Unit (CPU) time and bandwidth (NET) resources as users possess them.
As per EOSIO, the network is affected by a badly structured resource assignment method that permits a major share of the network’s resources to go unutilized in spite of considerable requirement, restraining the network from functioning at its peak.
In case of an outage, REX was administering roughly 30% of the network’s resources and when it ended up “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.”
To resolve the problem, EOSIO has suggested a modification to the REX system:
“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 not be restricted from staking their EOS token holdings in the new plan, but they will not be able to acquire CPU/NET resources. To compensate for the loss, fees will be paid from revenue generated via EOS name auctions, receipts from rentals of CPU/NET and RAM fees. The post further elaborates as follows:
“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 reliable for the community.”
The price of resources will be based on the availability and demand. The price will increase when the CPU/NET resources are scarce. The shift to the suggested plan will be done in a systematic manner, with resources being gradually moved from the old REX deployment to the rental method in the course of time.
Despite claiming to offer a scalable network, EOS continues to run into several issues in the past few months. Last month, the EOS blockchain faced network jam to limit average users from making trades as a result of the EIDOS token airdrop.