tl;dr — The EOS mainnet is congested due to a new token called EIDOS. The community asked us to assist in devising a solution and we believe we’ve come up with a novel approach: An Immune System for the EOS resources market that uses Proof-of-Rest.
Negative Sum Game
In the past couple of weeks, the EOS community witnessed a halt in their ability to create new transactions on the EOS mainnet, due to a new token “mining” mechanism. The new token, EIDOS, is “mined” by transferring EOS tokens to a smart contract that then sends the EOS tokens back to you along with EIDOS tokens.
The EIDOS token was listed on several exchanges, providing value for those who “mine” it & spurring many EOS token transfers to the EIDOS smart contract in order to receive more EIDOS, that users can later sell.
This massive uptick in sending EOS tokens created CPU congestion, where “regular” transactions require enormous amounts of EOS to be staked to CPU in order for them to execute.
The EIDOS token is a great example of a “waste value” token. Although there is no real value to the token, users on exchanges are buying it — and by doing so, they are providing more “fire power” to the CPU congestion we are witnessing today. We believe it’s a type of bubble, someone must be fueling it in order for it to exist (maybe without even knowing), and because the bubble is resulting in negative value (Network congestion) it can’t be sustained in the long term.
The waste-value token gives a user positive reinforcement for wasting valuable resources- in the case of EIDOS it results in CPU being wasted. The community asked us to devise a solution and we believe we’ve come up with a novel approach to handling this issue: the way to fight this bubble is by creating an adversarial bubble which will serve as the “Immune System” of the EOS resources market.
Whereas EIDOS relies on CPU usage for mining, this Immune System will have its own token, which will compensate users for NOT using their available CPU, a Proof-of-Rest if you will. A user will be provided with an “ImmunityToken” if it proves that it had the option of wasting CPU, but it chose not to do so. In other words, the user will be rewarded for its idle CPU.
This “ImmunityToken” will have an inverse effect that the waste-value token (in our case, EIDOS) has — ultimately reversing the negative consequences of the waste-value token. In addition, this new token has a positive sum value — keeping the chain healthy and balancing the CPU demand.
How It Will Work Technically
This solution does NOT require a change in the base layer nor BPs cooperation (just how we all like it).
We envisioned the ImmunityToken smart contract to operate like so:
- Every time EOS tokens are sent to this contract — it will call LiquidOracles in order to check how much CPU the user did NOT use since the last transfer/claim (the LiquidOracle DSP will be aggregating this data using its local EOS node)
- The contract will send the EOS back to the sender, along with the new ImmunityToken in proportion to its aggregated unused CPU of the sender’s account.
How It Will Work Economically
In order to pop the current EIDOS bubble, the ImmunityToken is going to need an active liquidity market, with a price and liquidity depth rivaling the one EIDOS has (at least temporarily). We believe the community has the most to gain out of bootstrapping the token.
Btw, eos.savings seems to be growing nicely.
Thank you for taking the time and considering this suggestion.
For Community Immunity,
Tal Muskal & Beni Hakak.