Dan Larimer Has New Plans To Reduce EOS Network Congestion

A new resource allocation model that will resolve the network jamming on EOS was proposed by Dan Larimer. If the proposal succeeds in its intentions it will give better access to dApp developers to the bandwidth resources that they need to operate their apps. Specifically, CPU and NET resources should be available at a more stable price as we are reading in the EOS news today.

 “The single biggest complaint is that CPU is too expensive [and] that it is too unpredictable in terms of how much CPU bandwidth you get at any given time,” Larimer says in his proposal. Many customers cannot bind enough EOS to reserve CPU because the CPU rental market has become speculative.

The point of the new proposal of Larimer essentially aims to discourage speculative activity. It makes sure that 100 percent of the CPU is lent from EOS’s system contract at all times and a steep price curve is implemented making the CPU non-transferable resource. The dynamic resource market should become a stable one with the implementation of these features.

This is not the only time that a solution to the jamming problem is looked for by EOS. Resource exchange that allows users to stake their EOS, called REX was introduced in May this year by EOS, thus giving their entitlement to CPU to other users and in return receive prizes. According to Dan Larimer, as users made many withdrawals REX ran out of EOS. 

Incredibly long waiting times are another problem that REX faces. “Lenders end up waiting 30 days for leases to expire or potential renters end up without any EOS for rent because lenders have asked for their EOS back,” Larimer said. There is no easy solution for both of the parties under the current REX model.

REX is still functional besides these failings. “The good news is that REX is working as designed,” Larimer said. In the future, the new market will still send prizes to REX users, while EOS can still be retrieved by lenders from REX. The rise of the price of CPU by over 100,00% is the fault of EIDOS’s campaign, according to Coinbase. The prices EOS’s CPU is high as they were a few weeks ago, while there is a possibility that the campaign will die out.