EOS has undergone two phases in determining how to allocate resources (decentralized computational power) among token holders. Imagine an apartment complex with 1 billion rooms. In phase 1, living in the rooms represented your ability to post (or "sign") transactions/do things on the EOS network.

From 2018-2021, staking 1 $EOS meant owning 1 room. In the fall of 2019, the EOS network became "congested" because token owners had resources they didn't utilize. Developers needed the resources that token holders were not using. The resource mismatch inspired the change to Phase 2, the PowerUp Model.

The PowerUp Model allows for token users to lend resources. For example, a user with 1 $EOS would have 1/1Billionth of the "equity" of the entire network. Having equity means earning from rental fees. By owning 1 $EOS and lending it in the REX smart contract, you make 1/(amount of $EOS in REX) of the rental fees.

Do you have more questions on this subject?

You can find an in-depth tutorial about EOS resources here.

Author: Jesse Jaffe

Editor: Randall Roland

Translator: -

Sources & References: