The REX (Resource Exchange) resource lending, which has long been anticipated on the EOS platform, has been approved by the minimum number of 15 block producers required for implementation. EOS owners will soon be able to passively earn EOS tokens by lending their EOS.
How does the EOS resource model work?
There are no transaction fees on the EOS platform. For this one uses a resource model. When EOS is staked, they become resources. There are three types of resources: NET, CPU and RAM. RAM can be traded on a free market. This is needed to store data. For example, the tokens you own or the smart contracts on an account will consume RAM. That’s why creating a new EOS account costs money, depending on the EOS and RAM price. The current RAM price can be seen -> here .
It looks different with CPU and NET. For this, EOS will be staked or blocked on the account. Depending on the proportion in the network, resources are available to interact with it. For example, if the share of NET or CPU staked EOS is 5%, you are entitled to up to 5% of network capacity or CPU usage. NET and CPU are renewable and capacity is recovering. If you want to unsteady your EOS again, you have to wait three days. Also, for voting, EOS is required in one of the two resources. The more EOS are staked, the more power you have.
What is EOS REX?
EOS REX stands for resource exchange and it proposes a rental paradigm for EOS resources. Currently, developers who produce dApps on EOS must buy resources such as CPU and network bandwidth. These means typically power EOS apps, and the new rental type will make resources much more affordable for developers.
Resource lending allows EOS owners to lend their excess EOS. Similar to the housing market, it is often a cheaper alternative to rent resources instead of buying them. The EOS token holder or lender sends his EOS to a pool managed by a Smart Contract. Depending on the current ratio, this returns REX tokens, which are generated at the moment. These REX tokens are not tradable or can only be transferred back to the REX Smart Contract. REX tokens must be kept for a minimum of four days after purchase for their return to EOS. After the exchange, the REX tokens will be destroyed by the Smart Contract.
When someone requests resources from REX, he pays fees. These come into the EOS pool and thereby change the EOS / REX ratio. For example, 100 EOS from lenders are transferred to the REX pool. The lenders get 100 REX tokens for it or buy them. Resource takers borrow the 100 EOS for a fee of 2 EOS. Now we have 102 EOS to 100 REX, so a Ratio EOS / REX ratio of 1.02. This ratio can not sink, means you always get (as a lender) at least as much EOS back, as much you have lent.
At EOS there is the possibility to delegate resources. Means as much as account A can steal its resources for account B. B has no control over the administration of resources. This property is used by REX. The REX Smart Contract staked the EOS into either the NET or CPU account of the resource lender, as desired. If the rental period has expired and is not renewed, the EOS will be automatically withdrawn.
The big advantage of REX is that the lender retains the voting rights. So he can vote with his EOS even though he has awarded it. It is even necessary to select at least 21 block producers or a proxy to use REX. This will provide an incentive to foster voting that is important for the DPOS consensus mechanism .
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