EOS’s Dan Larimer Has Plans To Reduce Network Congestion

Stable CPU prices might combat network overload.

Dan Larimer has proposed a new resource allocation model that will combat network congestion on EOS. If the proposal is successful, it will give dApp developers better access to the bandwidth resources that they need to operate their apps. In particular, the change should make CPU and NET resources available at a more stable price.

“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 explains in his proposal. He also adds that the CPU rental market has become speculative, and, as a result, many people cannot commit enough EOS to reserve CPU.

Larimer’s new proposal is essentially designed to discourage speculative activity. It ensures that 100% of CPU is leased from EOS’s system contract at all times, implements a steep (or exponential) price curve, and makes CPU into a non-transferable resource. These features should turn the dynamic resource market into a stable one.

Redesigning REX

This is not the first time EOS has tried to solve its congestion problem. In May, EOS introduced REX, a resource exchange that allows users to stake their EOS, thereby giving their claim to CPU to other users and receive rewards in return. However, REX ran out of EOS as users made large withdrawals, according to Larimer. Read More...