EOS PowerUp Model — Review & its vantages

The EOS PowerUp middleware system for renting and staking is up and running. This article gives an overview, advantages and its disadvantages.

Public blockchains allocate and manage on-chain resources is extremely important. Some networks operate on the basis of transaction fees, where prices go up as more people try to transact. Those fees are collected by miners.

In EOS : The EOS Public Blockchain has a different model that involves locking up EOS tokens to reserve resources. On the EOS Public Blockchain, there are three resources that matter,

CPU bandwidth (CPU) : which is the amount of time it takes to process a transaction.

Network bandwidth (NET) : which is the size of a transaction measured in bytes, and

RAM: which is the method for storing data on-chain measured in bytes. We’re going to talk about PowerUP model, CPU,NET and how we propose to evolve them moving forward.

PowerUp Action :

This new system will create a new optional NET and CPU marketplace which displaces (over time) the existing staking system and REX market. Under the old model, system token holders own NET and CPU and may choose to use it themselves, delegate it to others, or make it available for others to rent using the REX market.

Under the new model, the chain owns almost all NET and CPU resources and the only way to access these resources is through the new powerup action. It channels fees to the REX pool to enable token holders

to profit off the new market

Power Renting resources :

net_frac and cpu_frac will approximately represent the fraction of total network resources. This should simplify resource planning since the fraction will no longer depend on how much other accounts have staked or rented from REX.

Advantages

Before explaining about advantages of EOS powerup model; lets go through issues with current system called Resource Exchange (ReX).

Current system :

We are using EOS blockchain for hospitality area , Dapps name is REWALY . The major issue we find in rex system is :

• We need to rent CPU/NET for our users using REX and CPU and NET locked for one month. So if some user use our dApps for only 1 day we need rent CPU /NET it will cost us.
• The usability of REX is not so high. Once the lease ratio approaches 80% (the limit set by the system), the available resources are run out and can be leased no more.
• The resources of the EOS blockchain is not fully utilised . For example Rewalty user staked hug amount of EOS and get 10% of CPU /NET resources of entire network . But in real world scenario user cant manage complete CPU / NET Resources .

Power Up Advantages:

1. Makes full use of CPU/NET resources
2. Rent CPU / NET for 24hrs . It will be cost effective for Dapps like Rewalty .
3. CPU Payment (EOS) (approx.)

Fee: 1.1308 | CPU Fee: 1.1308 | NET Fee: 0.0000

Stake amount | CPU: 5,246,254.5659 EOS | NET: 0.0000 EOS

Resource for 24hrs | CPU: 3.77 s | NET: 0.00 bytes

4. The main goal of the PowerUp is to ensure that resources are being used efficiently without speculation & downtimes and no more unused shares of resources.

PowerUp Disadvantages:

1. EOS stacking in power up for renting resources provide only for 24 hrs, with 0.0001 % of fee.
2. CPU and NET calculation should be together. The segregation of it causes confusion within the calculation of the costs.
3. Insufficient documentation support for PowerUp model.
4. Block dropping is an issue in EOS network currently found .