# How do resources work on EOS?

> Intro for new EOS users

Canonical: https://help.blockzhub.io/articles/how-do-resources-work-on-eos

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](https://chintaieos.medium.com/network-congestion-solutions-5c3c283b852)" 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](https://eos.io/eos-public-blockchain/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](https://medium.com/eos-new-york/the-ultimate-guide-to-rex-participation-on-eos-9cc0e449b320), you [make](https://bloks.io/rex) 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](https://help.eossupport.io/en/articles/5790704-the-resource-system-on-eos).

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Author: Jesse Jaffe

Editor: Randall Roland

Translator: -

Sources & References:

* [Network Congestion & Solutions](https://chintaieos.medium.com/network-congestion-solutions-5c3c283b852)
* [PowerUp Model](https://eos.io/eos-public-blockchain/powerup-model/)
* [REX smart contract](https://medium.com/eos-new-york/the-ultimate-guide-to-rex-participation-on-eos-9cc0e449b320)
* [REX on bloks](https://bloks.io/rex)
* [EOS PowerUp service (Website)](https://eospowerup.io/free)
* [EOS PowerUp service (Telegram bot)](https://t.me/eospowerupbot)
* [in-depth tutorial about EOS resources](https://help.eossupport.io/en/articles/5790704-the-resource-system-on-eos)