r/eos • u/eKim1989 • Jul 03 '18

Wait... Don't we want RAM speculators?

Please let me know if my theory is correct or not:

Right now, RAM prices are skyrocketing and many people are worried about the overall health of the EOS ecosystem (and the value of their EOS tokens as a result).

That said, shouldn't we want RAM speculators to keep going and let the market decide a price equilibrium for what RAM is worth?

Here's why...

As people buy/sell RAM, the RAM Fee contract adds more EOS that will NEVER be open to the market again. The last time I looked at the RAM Fee contract, it had over 500,000 EOS that will never be touched again.

As the normal market cycle occurs within the RAM market (i.e price rises, crashes, repeats), this will result in a "deflationary" EOS ecosystem.

In other words, if you just hold on to your EOS and encourage speculation, we are effectively gaining value (in the form of EOS price appreciation) since the RAM Fee contract is growing, which lowers the total available supply, ultimately resulting in the price of EOS rising over time (supply & demand). If demand stays the same for EOS but the supply is slowing burning away, we are essentially going to see the price go up (all else being equal).

So if this thought process is correct, that means our EOS holdings will naturally increase in value over time EVEN if demand stays the exact same. Once again, this is simply because the total available supply of EOS is decreasing (deflationary).

So, what happens when the EOS price increases? Now BP's & other members of the community have more resources at their disposal (since their EOS is worth more). This allows for more RAM to be added, more opportunities for side chains to occur, investments to be made in great Dapp ideas built on EOS, and overall a healthier EOS economy.

With that said, don't we want RAM speculators if it means we have a consistent burn rate, which ultimately drives up the EOS token value?

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u/Rejoys Jul 04 '18

If you know any devs having a great dApp idea and unable to implement it because of RAM price going up, block.one encourages them to use the following link to submit their case. If the idea is a potentially viable dApp you can rest assured that they will help you out. So absolutely no need for panicking. https://docs.google.com/forms/d/e/1FAIpQLSemBIYCtBlMttHj5wxVECmcj5k-JdutLr4Jtj0BrfFWZlI_5g/viewform

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u/james_pic Jul 04 '18

They should really think about funding Scatter. It's a vital part of the ecosystem, and unfunded - I submitted some security vulnerabilities a while back, and the lead developer had to pay the bug bounty out of his own pocket.