EOS
$3.42 21.27%
EOS · 27w

Medium: What REX Means for Token Holders

What REX Means for Token Holders by Haley Thomson, Head of Strategy at EOS Cafe Calgary

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 ...

Continue on medium.com
Recent news
EOS +21.27% · trybe.one · 10h

PixWeekly #2: This Week in PixEOS

Hello pixEOS community! We are happy to present another pixWeekly for you. There's a lot going on in the pixEOS ecosystem and here are the main highlights of last week: pixEOS Paint Game Stats You can...
EOS +21.27% · trybe.one · 11h

Update To pixEOS Staking Bonus System

Today the extra 20 million pixEOS tokens allocated to the staking bonus will end. Originally these tokens were distributed as an extra bonus to pixEOS paint stakers; our way of saying thank you to eve...
10
EOS +21.27% · trybe.one · 11h

Why I Join the EOS Community Part 16?

More than 6 months ago, my wife (Nova) and I (Edwin) arrived at the EOS Community and we had been with the Trybe Community as its Referral Member #45 https://trybe.one/why-i-joined-the-eos-community/ ...
EOS +21.27% · trybe.one · 22h

  OpenBRM -  Monthly Reward Drop 

BRM Foundation is rewarding BRM token holders for supporting the project. BRM reward drop will run for 6 months starting from march 1st. There are 2 types of rewards for users.  Staking rewards for st...
13
EOS +21.27% · trybe.one · 22h

Why I Join the EOS Community Part 15?

Since the day when I started Trybe from “Why I Join the EOS Community Part 1”, I shared my experiences from the days of the I left and packed from the Eth and Neo Communities, and till now, I have arr...
11
EOS +21.27% · trybe.one · 22h

POVERTY MUST DIE -SAYS THE EOS BLOCKCHAIN

NO POVERTY Imagine waking up one day to here of the death of poverty in our world, how will you feel? According to the Sustainable Development Goals (SDGs), there should be no poverty by 2030 and I ke...
17