The block producers securing the EOSIO blockchain have updated their system contracts to enable the implementation of the REX system. The REX system allows holders of EOS, which are staking their tokens, to rent out their allotted resources. This milestone is one which EOS token holders have been waiting for, for some time.
The REX system effectively moves the EOS project into its next phase by promoting interaction with the blockchain to the average user. The EOSREX.io website state’s that engaging with the REX pool will prove to be financially beneficial to the average person, via its use of the REX token.
What is EOSREX and the REX Token?
By creating a token which will have a value that “always increases” (according to EOSREX.io) against the native EOS token, the REX marketplace is propped up in a way which will, hopefully, encourage the average EOS holder to engage with the blockchain and stake their tokens.
Since the EOSIO software implements the DPOS (Delegated Proof of Stake) system, it requires users to stake their tokens in order to provide any true level of decentralisation. Without the average user’s input regarding BP voting, the system is susceptible to gaming of the delegated rewards system, and a 51% attack.
By activating the REX marketplace users are now able to stake their EOS tokens in return for REX tokens, which represent a percentage of the available EOS resources. The theory regarding financial incentive and confident stance regarding their appreciating value relies on the eventual scarcity of the EOS network’s resources.
If the network is required to process larger transaction throughput it will use more of its resources. When this eventuality happens each REX token will be worth a larger number of EOS tokens (the value of which may be less against FIAT currencies, which is the grey area in the financial return). The REX token will also benefit from the fees earned by RAM trading and name auctions, it is hoped this will provide further financial reward for REX token holders.
Whether you are a fan of EOS or not, this is a large step forward in the progress of the project and it should instil further confidence into token holders.
Love, peace and happiness.