Response about the EOS Resource Model Proposal from OKEx Pool Community

Responding to Block.one’s initiative to provide feedback on the new resource allocation model of EOS, OKEx Pool has undergone a series of heated discussions internally for the possible consequences and ramifications of this potential change, and has asked our community users for their valuable opinions. The conclusion from our party and some of the highlighted feedback from our community are as follows,

Briefs of the Resource Allocation Proposal

First, users must rent CPU resources if they need to make transfers under the new proposed system;

Second, users can still stake their tokens if they have spare EOS. But the staked resources are allocated to resource rental markets. Instead of receiving CPU, they will receive rental proceeds including name auction fees, Ram fees, and proceeds from CPU rentals.

Third, migrating from REX to resource rental markets, this model upgrade could be taken as an enhanced and more complete version of REX, all EOS holders must use this enhanced REX mandatorily (the previous REX was not mandatory for use)

Why making this change?

First, the current REX could only solve a tiny portion of the resource-related issues, when a large amount of rentals come up in a short period of time, REX appears to be running out of resources, but actually most of the resources are unutilized.

Second, when the REX appears to run out of resources, some of the high-priced private rental markets will come to life, which making the prices in the whole market opaque, and in turn causing issues of price instability and high-price for EOS resources.

Our Community’s Feedback on this Proposal

Our users in OKEx Pool community have been enthusiastic and mainly supportive to this new change of REX. Most of them think that even though the path of development of EOS resource allocation seems to be relatively rugged, but this is one of the huge gains in the REX exploration process since its launch half a year ago.

With the explosive growth of DeFi, users and developer on EOS requires a more user-friendly and high-speed development environment.

Here are some highlighted feedback from the community that provide some constructive thoughts and opinions;

1. For this new REX to be successful, everyone has to use this REX system to reach optimization. The best way to achieve this goal is to alter the resource allocation model, making the rental of CPU mandatory for everyone, therefore the resource allocation model should be directly altered at the underlying layer this time.

2. Broadly speaking, every user has to rent CPU (30 days of rental) in order to make a transfer, and some of the fees will be consumed for each transfer made, thus we can take this as a new type of model for gas fees. Because these gas fees are eventually paid to the users that rent out CPU resources, and those users are literally EOS token holders, so at last this system (proceeds from rental) will benefit the token holders.

3. Even though this change to the resource allocation model will not facilitate the use of system for the users, but it still brings a lot of value to the table,

-Because the liquidity pools of CPU for rental will be much larger than before under the new system, which means the supply of resources will spike, causing the CPU prices to drop tremendously; despite the fact that CPU resource prices will still fluctuate, but the previous issue that lots of resources go unutilized when there is a huge demand will be resolved. Hence this change will make the markets much more effective and cost-efficient.

-After this change to the current resource allocation model, the costs for renting CPU resources will further decrease for both wallet and DApp projects, leaving them with more money on project R&D, this is another great value manifested from the change.