Dan Larimer of EOS offers solution for its resource renting and rent distribution

On 2nd August, Dan Larimer, the CTO of BlockOne, published a Medium blog post that suggests a solution on how to lower the capital costs involved with network usage and CPU resources on the EOSIO blockchain. Larimer has stated that creating a rental market that is efficient enough to make the resources always available and cheaper for the community.

Dan Larimar's tweet | Source: Twitter

Dan Larimer’s tweet || Source: Twitter

Lending Tokens

There can be a Resource Exchange where the holders of EOS can lend their tokens for REX tokens. The Resource Exchange will have a book value for the tokens to determine the returns. Next, a fee can be decided by the REX by lending the EOS tokens, which will pump up the book value.

Since EOSIO generates fees from services such as name auctions, RAM trading, and others, it can offer that capital and add it to the books of the REX. This way, the rewards from network operations can assist the REX holders and incentivize them to hold EOS for the rental period, which is a minimum of 30 days.

Borrowing Stake Tokens

A certain number of Stake EOS tokens or SEOS will be generated whenever the books of the REX receives an EOS token. To establish the connector balances between EOS and SEOS, Bancor Relay connector service can be used with the initial ratio of both the tokens kept as 1:1 leading to the generation of a micro trading fee.

The SEOS tokens that are not received back by the Bancor Relay can be converted into EOS tokens to contribute to NET or CPU resources for the rental period. Post 30 days, the SEOS can be rented to other parties after it is returned to the Bancor Relay. Moreover, after the renters make SEOS conversions, No EOS will be returned to them.

Larimer also suggested a plan to avoid SEOS holders from hoarding their tokens. He wrote:

“SEOS is inflated at a rate equal to the implied interest rate defined by the current EOS/SEOS price for 30 day rental.”

By doing this, the SEOS required to attain 1 EOS will go up. This SEOS can then flow into the market after being added to the Bancor Relay.

The interest rate of the CPU or NET bandwidth will be set for the rental period by speculations done through the SEOS/EOS market. The speculators will give an idea of the price movements in order to set suitable rental rates. This will generate money for the speculators. Apart from the rental fees, REX holders can gain profits also from the trading volume.

The post Dan Larimer of EOS offers solution for its resource renting and rent distribution appeared first on AMBCrypto.