Exclusive: EOS Token Stake Driven Up by Popular Gambling DApps

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By Maud Guon Nov 02, 2018
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At present, more than 54% of EOS tokens are staked. Cryptonews Hub found that this number was being pushed up by the increasingly popular gambling DApps on the EOS network.

Gambling DApps Stand Out from the Rest

Since the launch of the EOS Mainnet in June this year, the EOS ecosystem has seen new DApps constantly springing up. There are currently more than 120 DApps on the EOS blockchain at the moment, according to data from DApps stats providers DappRadar and DappReview.

Cryptonews Hub has found that the number of EOS DApp smart contracts rose between June and September.

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Source: Cryptonews Hub (6pm, October 29)

It has been observed that 62 of the 125 EOS DApps are gambling-related, accounting for 49.6%, while others—including games, exchanges and wallets—only account for 50.4% of the total. Gambling DApps take up 53 of the top 100 EOS DApps ranked by daily active users (DAU). Fewer gambling DApps have been built on the Ethereum blockchain, accounting for a mere 17% of the top 100 DApps by DAU over the same period.

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EOS gambling DApps are becoming increasingly prevalent, and have become a major feature of the EOS ecosystem. EOS gambling DApps have surpassed those on the Ethereum blockchain in both quantity and activity for several weeks. As gambling DApps account for as more than 90% of the total transaction volume, EOS has jokingly been dubbed the “top public blockchain for gambling.”

Boom in Gambling DApps Eating Up EOS CPU Power

Two weeks ago, the EOS platform reportedly suffered a serious shortage of CPU resources. At one point token holders had to stake as much as 2,000 EOS tokens for a mere 1.3 seconds of CPU time—the price of CPU resources then went sky high, hitting 325.9 EOS/s. Many people argued that it was caused by gambling DApps.

Developers are required to stake EOS tokens to access network resources—including CPU, NET and RAM—on the EOS blockchain. They can unstake at any time to get their tokens back.

The more EOS tokens users stake, the more CPU resources they can use for transactions on the EOS blockchain. So when one user faces a shortfall in CPU resources, others must have staked a large number of EOS tokens to increase their amount of CPU time.

Cryptonews Hub counted the number of tokens staked by each EOS DApp. It has been found that 125 DApps have a total of 3,036,443.5 EOS tokens staked for CPU resources, among which, gambling DApps have 2,677,894.164 tokens staked, 88.2% of the total EOS tokens staked.

As shown in the following table, 21 of the top 30 DApps—based on the amount of EOS tokens staked towards CPU—are gambling projects. Gambling DApps BetDice and FarmEOS hold the top two spots, with 1.214 million and 470,134.65 tokens staked respectively. It is clear that gambling DApps serve as the main driving force pushing up the number of tokens staked for CPU and NET resources.

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Note: “CPU staked” here refers to the number of EOS tokens staked by user accounts for CPU resources—either by users themselves or by others.

The CPU shortage was a direct result of the boom in EOS-based gambling DApps and increasing number of users. This has caused a sharp increase in the CPU price.

Staking Cuts Into Liquidity

In the EOS ecosystem, developers have to stake more EOS tokens to gain more network resources like CPU and bandwidth.

There are four types of network resources on the EOS Mainnet—CPU, NET, RAM and storage. RAM is a resource that developers must buy with tokens for all EOS operations, while CPU and NET could be staked and reclaimed.

Developers and users in the EOS ecosystem are granted access to network resources and voting rights by staking their EOS tokens. In view of this, the number of staked tokens can affect the liquidity of EOS and the blockchain as a whole very easily. The more EOS tokens staked, the less tokens in circulation and the easier it is for major token holders to manipulate the crypto price.  

How many EOS tokens are staked at the moment? Does it have anything to do with the rapid increase in EOS DApps?

Cryptonews Hub has found that currently more than 54% of EOS tokens are staked, reducing the number of tokens in circulation, resulting in shrinking liquidity.

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Source: eosflare.io

However, only a tiny number of staked EOS tokens come from EOS DApps.

Currently the EOS ecosystem has a total of 3,110,194.46 tokens staked by DApps, 3,036,443.5 of which are staked for CPU and 73,750.9599 for NET. There are 552,225,339 staked EOS tokens in total at the moment, with DApps only accounting for a mere 0.56%.

As EOS DApps are becoming increasingly popular in this day and age, developers have to stake more tokens to use network resources. But why do DApps only account for a tiny share of EOS tokens staked?

Cryptonews Hub proposes three reasons for this.

Firstly, the statistics may not take all DApps into account. DApps that have not yet been factored in also need EOS tokens staked for network resources.  

Secondly, many tokens staked may come from other sources:

  • Token holders can stake their tokens to vote for block producer (BP) candidates. According to data from eosflare.io, a total of 267,233,316 EOS tokens have been staked for voting purposes, accounting for 48.4% of the total tokens staked

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  • A large number of EOS tokens have been staked for RAM resources. RAM is a scarce resource in the EOS ecosystem, and tokens cannot be traded or rented out when they are staked for RAM resources. According to eosflare.io and EOSeco Explorer, a total of 2,586,734.6806 tokens have been staked for RAM

Lastly, a number of non-DApp developers could have staked some EOS tokens for network resources, to meet future demands. Such data would not have been included in the statistics on EOS tokens staked from EOS DApps.

Cryptonews Hub is an emerging blockchain media and information services company specializing in crypto assets. Its team of experts is committed to editorial independence and journalistic professionalism, providing key insights on the latest developments involving cryptocurrency regulations around the world and innovations in blockchain technology.
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