Telos Interim RAM Administration Director position paper
By Jan Smit
The RAM Administration Director’s primary responsibility is to maximize DApp adoption of the Telos chain by keeping the Telos RAM price as competitive and stable as possible.
To achieve this the RAM Director has a number of instruments to influence short and long term price developments.
Among other things, the RAM Director:
Publishes a Public Guidance Price (PGP) for RAM at least every 10 Million blocks (approximately 58 days).
Requests the power to call adhoc RAM meetings to increase RAM supply (setram). The automatic RAM growth rate (setramrate) will be set to 0 initially.
Requests a budget to trade RAM
What it means
To fend off excessive speculation on RAM, EOSIO has implemented a gradual RAM growth rate (setramrate). To further curb speculation and to support a Public Guidance Price, the Telos RAM Director may increase RAM (setram) in substantial steps with hardly any notice. As the Bancor algorithm causes RAM prices to depend solely on the the available Telos and RAM (connector) balances, a change in RAM has an immediate impact on the RAM price. The Telos block producer minimum requirements will provide ample opportunity to grow RAM. Finally the Telos RAM Director will also support the PGP by buying and selling RAM.
The RAM Director appoints the RAM Advisory Council (RAC) who assists the RAM Director with advice. The RAM Director only drafts and discloses the final actions with the RAM Director’s administration reporting directly to the RAM Director, not with the RAC or any other person or body. The RAM Director and his/her administration and the RAC members are subject to a confidentiality and insider trading policy which will be developed shortly.
This policy includes the following: The RAM Administration and the RAC shall not make any trades regarding RAM 100,000 blocks before and 500 blocks after a new PGP is published. Any member of the RAM Administration is prohibited from trading Telos RAM or TLOS tokens on their own account outside the small amounts necessary to keep personal or business accounts functional and manage salaries and budget items paid in TLOS. Information about changes to the PGP report shall be considered confidential and insider information and sharing this information with any person outside the RAM administration — including the Telos Foundation Executive Director and any member of his or her staff, or the executive board or any member of their staff — shall be liable for penalties as determined by arbitration.