After about two months since the release of the first version, today the EOS PowerUp Model has been officially deployed on the EOS mainnet, bringing improvements in resource allocation for both users and developers.
The EOS PowerUp Model drastically changes the way resources are allocated. Before this implementation, holding EOS tokens was equivalent to holding a portion of the network resources, now it will be more similar to holding a right on the revenues generated by the whole network.
Why is this so?
Essentially, with the EOS PowerUp Model, users can power up their accounts for 24 hours, for a small fee in EOS. EOS token holders will be able to stake their tokens to earn a portion of all fees generated by the network through this mechanism.
In this way, it will be possible to further abstract the on-chain resource management from the end-user, improving the user experience for all users on the EOS public blockchain. Middleware will likely be established that will offer resource management automatically for dApps and new users. This would further reduce the cost of user onboarding, and enable applications developers to remove resource cost from the average user experience entirely. Making EOS the ideal platform for use case like programmable and decentralized finance. Are you #BullishOnEOS ??
"Imagine if token-holders on proof-of-work networks were the recipients of fees generated by transactional activity on-chain, instead of miners. That’s essentially what’s happening here. Depending on your usage level and the total amount of tokens deposited, the fees you collect may offset the fees you pay to power up your account. And all of this happens within the context of ensuring greater availability of system resources."
So this new system opens new possibilities for all users:
Image from EOS Authority
"We believe that the EOS PowerUp Model alleviates many resource challenges on the EOS Public Blockchain and seeks to increase alignment between token holders and usage of the EOS Public Blockchain."