Dan Larimer shook things up last Thursday with his “Proposal for EOS Resource Renting & Rent Distribution”. The proposal includes sweeping changes to EOSIO software and many complex concepts. It left even the most astute EOS enthusiasts with many questions and much is still unclear about the proposal.
While this proposal centers around adding a rental market for EOS bandwidth (CPU), the near term implications for the average token holder actually have nothing to do with CPU at all. Even if you assume that the rental price of your CPU is $0, token holders should still be very excited about this proposal.
Don’t get me wrong, the ability for dApps to rent bandwidth for a fraction of the capital cost of owning is great for adoption, and the prospect of all token holders being “landlords” will be very valuable long-term. But a price of $0 for CPU in the near term isn’t a crazy assumption (given the limited demand and near endless supply).
What really matters to token holders short term is the Resource Exchange (REX). REX is a bucket that collects all EOSIO resource fees including RAM sales, fees, and name auctions. The future price of CPU rental may be uncertain, but revenue from RAM and Names are very significant. Currently these resource fees are unallocated but this proposal changes that, and that’s big news.
At the current price, $1.50 of RAM is created and sold with every block. That adds up to over $250,000 a day of unallocated revenue that could soon flow to REX. Forget the CPU market, how does a token holder get a piece of that?
The mechanics of REX are actually pretty simple; to receive network rewards a token holder has to lend their EOS to REX, in exchange for REX tokens (T-Rex), at a 1:1 ratio.
These tokens are non-transferable, there will be no market for them, they are simply an “accounting artifact” that can only be ...