After some intense discussion in The Cryptoverse private chat group yesterday, I saw the complexity of EOS REX from a new perspective.
When it comes to explaining something to someone else, that’s when it becomes apparent to me how complex the topic is.
So rather than attempt to explain the EOS Resource Exchange in excruciating detail, today let’s just focus on the 4 ways you make money by putting your EOS tokens into the REX.
Once again I’ll be using the EOS Authority REX interface at https://eosauthority.com/rex/
Making It Easy To Work Out Your Gains
The first thing I recommend you do is decide on the total number of EOS tokens you want to put into the REX and then do it all at once.
That makes it easier to calculate your profit later without having to keep a log.
As I look at my chrisjsconey account for example…
On the My REX Dashboard tab it says:
Total REX value held by chrisjsconey : 67.9199 EOS
You can subtract this from the number of EOS tokens you originally put in and see how much you have earned so far.
Then if we head over to the REX Statistics tab and scroll down to All REX income with breakdown…
On the right we can see in the last 1 day, 7 days or 30 days, the total amount of earnings that have been paid out from the REX.
Where this money comes from is displayed in the chart on the left.
If I wave over one of these data points I get to see the 4 ways the REX generates income, along with the actual earnings for the day I’m hovering over.
If I take Wednesday 8th May 2019 I can see that the vast majority of the income came from bidnames.
Basic EOS accounts have to be exactly 12 characters long. Premium accounts can be as short as 1 character.
So Far Premium Account Names Are The Biggest Source Of Income
Premium accounts belong to the EOS blockchain and they are auctioned off at the rate of one per day.
All of that income goes into the REX. So on the day I am looking at here, Wednesday the 8th of May, someone was the highest bidder on a premium account name, won the auction and the 2,038 EOS they paid went into the REX earnings pool.
You can see this happening on previous days by waving over other data points on the chart.
Premium accounts and the associated auction system is another feature of EOS for another day. But for now all we need to know is that this is a big source of income for the REX.
Income From RAM Trading Fees
The second source of income is ramfee.
These are trading fees that are charged to traders by the EOS blockchain when people trade RAM, which is the 3rd resource on EOS after processing power and bandwidth.
EOS has a little exchange built into the blockchain that allows people to buy and sell RAM, but it charges a fee on both sides of the trade. All of those fees now go into the REX earnings pool as well.
Yesterday, and actually since the REX launched, this is the 2nd highest source of income.
CPU And Bandwidth Loans
The last 2 sources of income we are probably already familiar with, CPU and bandwidth loans.
This is where app developers come along and rent the spare network capacity that EOS token holders are entitled to, but are not using.
While this is principally what the REX was designed to facilitate so far these are the lowest sources of income. I expect that to change over time.
So that is pretty much all I need to say. Those are the 4 sources of income, and using the EOS Authority chart you can see where the earnings are coming from at a glance.
The Crazy Amounts People Pay For Premium Account Names
If you want to see some of the crazy money coming down the pipeline from people bidding on premium account names just click on Bid Name down the left menu in the EOS Authority dashboard:
Scroll down and you’ll see what’s happening right now.
If I go over to the Sold Names tab it shows a history of premium account names that have been purchased in order of the price paid.
Starteos (a block producer) won the auction for the account name “com” with a bid of 150,000 EOS.
At $5 per EOS thats $750,000.
Unfortunately that was on the 6th of July 2018, long before the REX was launched, so we didn’t get the benefit of that income.
The reason they paid that much for an account name is that they can now create sub accounts for people with .com on the end.
They don’t have to be exactly 12 characters either. They could sell me the account name chris.com or coney.com, but not chrisconey.com because that is more than the 12 character maximum.
I imagine they intend to charge a good price for their EOS based .com account names in order to get their money back and then turn a profit.
Just a shame that 150,000 EOS didn’t go into REX earnings.