The operating mechanism of the RAM market

The RAM market in the EOS blockchain has a unique market mechanism managed by smart contracts. At its core is the Bancor algorithm, which automatically adjusts prices based on the current supply and demand for RAM.

When users purchase RAM, they trade using EOS tokens, and the system calculates the RAM price based on the existing market conditions. This means that the price of RAM increases with the volume of purchases and decreases otherwise. When users sell RAM, the system buys it back and returns the corresponding amount of EOS tokens.

This dynamic pricing mechanism ensures fairness and transparency in the RAM market. Additionally, due to the limited supply of RAM, price fluctuations also provide potential profit opportunities for investors and developers. This market design promotes the sustainable development of the EOS ecosystem while ensuring effective resource utilization.