The EOSIO blockchain defines three types of resources to compensate the usage of the network:

  • CPU for computation time

  • NET for network bandwidth

  • RAM for data storage

CPU – Computation time

Any transaction posted to the blockchain network, either a token transfer or an execution of smart contract actions, needs to consume some CPU time to be properly processed and packed into blocks. The total amount of CPU time is limited by the harware, so a certain amount of EOS needs to be staked in exchange for CPU usage rights. The network will prorate the CPU time that each account can use based on the total amount of CPUs collateralized on all accounts. This time represents the total CPU length that can be used in 24 hours.

Staked EOS in exchange for CPU can be refunded if some computation time will not be used in the future.

so that transactions tenically free. It takes 72 hours.

NET – Network bandwidth

NET’s distribution mechanism is the same as the CPU, but also through the mortgage method. To allocate the use of network bandwidth.

RAM – Memory usage

The total amount of storage space on the chain is limited, so storing data requires buying RAM. RAM needs to be purchased and the price is automatically adjusted by the bancor algorithm. The more people you buy, the higher the RAM price, and vice versa.


If an account need to use a large amount of CPU or NET for a short period of time, it needs to stake a huge amount of EOS token.