EOS News, Price Watch, Technology

EOS Reduces Account Creation Costs by 25 Percent

EOS Reduces Account Creation Costs by 25 Percent

EOS’ market-based RAM distribution approach has caused new account creation costs to rise beyond affordability. To combat this issue, EOS block producers approved an update to decrease account creation costs by 25 percent.

New EOS Accounts Now Require Less RAM

Fifteen EOS block producers voted to decrease the minimum amount of RAM required to purchase a new account and approved the EOSIO v1.2.1 update, according to a blog post.

On Sept. 6, EOS New York and 14 other block producers voted to implement the hard-coded change. Starting Thursday, new EOS accounts will require 3 kibibytes (KiB) instead of 4 KiB.

Related: EOS Block Producers Vote to Raise RAM Supply to Lower Cost of Running dApps

The update also gives new users a free 1,400 bytes of RAM upon account creation. Users who created an account before the EOSIO v1.2.1 update are still eligible for the free 1,400 bytes of RAM if they stake, unstake or buy RAM from the EOS network’s RAM market.

However, EOS users need to create an account if they want to launch transactions or transfer tokens within the network.

The cost reduction is aimed at increasing the onboarding of new users to the platform as well as promoting decentralized application (dApp) development.

EOS New York described how reducing account creation costs will improve dApp development on the blockchain:

“The users of the future will want to use the new dApp they found as quickly as possible. … For that to happen, dApp developers will need to pay for the network resources required to onboard users (or pass this cost on to users). Reducing this cost by 25 percent dramatically reduces the barriers to development when considering account creation at scale.”

Previously, EOS block producers voted to double the network’s total RAM supply in an effort to lower the cost of launching dApps. At the time, EOS RAM prices had risen drastically due to hoarders and speculators holding nearly 85 percent of the network’s RAM capacity–preventing developers from accessing necessary RAM for building and deploying dApps.

On July 24, 15 of 21 active block producers voted to approve the network upgrade and increase the EOS RAM capacity from 64GB to 128GB. Requiring 15 votes to pass, the upgrade is currently in effect.

EOS | EOS

Updated: September 8, 2018 at 7:10 pm PDT
$4.76 | 6.87%

EOS, currently ranked #5 by market cap, is down 6.87% over the past 24 hours. EOS has a market cap of $4.32B with a 24 hour volume of $534.24M.

Chart by CryptoCompare

EOS is down 6.87% over the past 24 hours.

Cover Photo by Jonatan Pie on Unsplash

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Jonathan Kim Author

Jonathan Kim

Jonathan Kim is a University of Washington student of Finance and cryptocurrency investor with a deep interest in the emerging industry of blockchain applications and cryptocurrency trading. His past experiences involve publishing original daily content for blockchain startups and trading cryptocurrencies using technical analysis principles.

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