EOS RAM Fees and BP Reward
As you may know, when trading RAM on EOSIO you incur a rather large transaction fee. In this scenario, the EOS paid for RAM fees goes to an account named
eosio.ramfee. While it’s still uncertain where that EOS will end up, for now, those tokens are out of circulation, thus offering a mechanism alike monetary deflation.
Similarly, block producers (BPs) are rewarded for their services to EOS. BPs are rewarded both for producing blocks (block rewards) and for winning the hearts and votes of the community (vote rewards.) To be paid, new tokens are created, thus introducing a mechanism akin to monetary inflation.
Inflationary or Deflationary
Then, the question is–who outpaces whom? Are RAM traders and users locking up more tokens than BPs are rewarded for their services? To check out the historical evolution of those mechanisms, I analysed all transactions related to those accounts and looked at them together from the launch of EOS mainnet.
Figure above shows that the EOS created to pay BPs has been offset by RAM fees so far.
As you can see, there has been an uncanny tendency of those two mechanisms to converge to the same cumulative number of EOS. In other words, the amount of EOS created to reward BPs has been matched by the number of EOS taken out of circulation from RAM trading.
On the other hand, the fate of EOS stuck in
eosio.ramfee is undecided, but there are several proposals considered. Below, I present how holders are impacted depending on how the ram fees are distributed, assuming (almost) everything else equal:
|Mechanism||Wealth for holders||Effect on wealth inequality||Possible|
|Funding successful¹ projects||↑||-||✓|
|Funding unsuccessful¹ projects||↓||-||✓|
|Distributing tokens uniformly||↑||↓²||✗|
|Distributing tokens proportional to wealth||↑||-||✓|
¹ Successful projects accelerate the increase in demand while unsuccessful projects do not.
² Decreasing/increasing wealth inequality is not necessarilly good/bad despite being colour coded green/red
- Someone paid 4,000 EOS in RAM transaction fees in one transaction of 800,000 EOS;
- The arithmetic mean of EOS paid for fees is about 3.5 EOS while the median is only 0.2 EOS, as the mean is skewed by large trades;
- Only about 8% of EOS accounts paid ramfees
- 11 accounts paid more than 10,000 EOS each for ramfees (one, however, is chainceonram, which is known to be associated with an exchange.)
Plese note that there are other forces at play in EOS, and accounts such as
eosio.saving are also stacking up on EOS for rainy days. Therefore, this post does not look at all mechanisms that affect the circulating supply of EOS.