A few hours ago the CTO of Block.one, Daniel Larimer, published a proposal to solve the problems of the EOS blockchain related to the management of the CPU.

Yesterday Larimer promised the community a solution and here it is.

The post explains how this situation came about and why the system responsible for providing the necessary CPU power, REX (Resource Exchange), has run out of resources to lend: as is known, the more EOS are staked to get CPU, the greater is the ability of an EOS account to process transactions.

As the CTO points out, this also implies that in order to manage many transactions, for example of a dApp, it is necessary to invest a large amount of EOS and thus money to buy them. Moreover, it is true that the price of the crypto is not stable and could involve a loss and a considerable investment in economic terms. The purpose of the REX was to reduce the costs of borrowing resources.

However, following the congestion of the blockchain, those who had placed their tokens in REX to get an interest decided to withdraw them and use them for their account, staking them to get more CPU power. This idea came to everyone’s mind and so, at a time of great demand for using REX, there were not enough resources in the platform.

The reason for this lack of EOS on REX is also due to the fact that, as Larimer explains, most of the deposits were governed by Pareto, so a rather centralised system.

As is also known, the EOS blockchain is designed to distribute resources according to the percentage of the EOS staked, so if a user has decided to stake 1% to have CPU, it means they can use 1% of the CPU power.

And this is where the CTO proposal to solve the problem of the EOS blockchain comes in: an ideal algorithm that precisely and predictably determines the total time of the CPU in order to lower the initial cost.

It is a system where 100% of the CPU is leased and then, instead of having a single system to get CPU, it would use the EOS to borrow the CPU, which would be determined in a variable way and locked by a special contract.

Moreover, the CTO proposes to gradually increase the supply of the CPU compared to the supply of EOS tokens staked by about 100 times: in any case, it would remain locked in the contract and available to all. Obviously, the same system can also be applied to NET.

This system would provide a CPU market similar to what is currently the case with RAM.