Declaration:This is a simple analysis about Pocket Network which I think as a promising project to complete the blockchain and web3 stack.I am not a blockchain developer and an native English speaker, so there might be some mistakes in this article. Some ideas and statistics come from others' research, you can find the references at the end of this article. Not financial advice. Thanks a lot.
——NPC_Leo
Pocket Network is a decentralized blockchain API service built for Web3 apps, relaying data to and from any blockchain through a network of decentralized nodes. The Pocket Network protocol validates all relayed data and proportionally rewards the participating nodes with POKT.
For those Dapps and Blockchain users who need the full data of chain, instead of deploying to a single service provider, paying fees for random outages and leaked data, you can tap into Pocket’s trustless API protocol and route requests to over 10,000 independent full nodes. Pocket Network is available for all major blockchain networks.
In short:
The economics of Pocket Network is the most brilliant part of its design ( other parts are also great ), I will quote the economics overview below:
Pocket Network requires both developers and nodes to stake its native utility token, POKT, to participate in the network. Nodes earn rewards for fulfilling API requests for developers on a per request basis. POKT is permanently inflationary, but total supply will be capped through a burning mechanism put in place by the DAO, who controls the monetary policy. The final total supply of POKT will be dictated by the DAO.
It means if someone needs RPC service, he will buy some POKTs and staked them, but also he will be rewarded with POKT from system inflation. He can also sell his staked share to market when he no longer needs it. When his staked share is less than the minimum of system required(due to the inflation ) , he need to buy more tokens to stake. The supply of POKT token depends completely on the demand for new API requests and sessions serviced by the nodes. No increasing demand, No new token. The amount of POKT will grow over time until the DAO caps the inflation upon maturity. The Inflation and the Burn Mechanism make POKT max amount stable, thus the system will stay balanced.
The monetary policy detail is clear and the total supply amount is also calculable with the relays increasing. There are 3 different phases, the Bootstrapping Phase, the Growth Phase, and the Maturity Phase.
The most complicated part of the monetary policy is how to calculate the totally supply of the Growth phase , because it depends on the Relays increaing and Dao's adjustment, you can check here to predict it with different parameters.( I can't fully understand it :) )
Demand side economic means how much you should pay if you want to use the service. Just like the above statement, you need to buy some POKTs to stake and will also get some POKT reward when the system is in the inflation phase.
The cost mainly depends on how many relays you need and the price of POKT. you can accumulate it with 0.75 $ ( the OTC price recently ) and the chart above if you are an DAPP developer.
Pocket uses Proof-of-Stake (PoS) to secure the state machine and falls under the umbrella of generalized mining or useful proofs of work, where inflation is directly tied to work validated by the network. At least 15,000 POKT needed to run a node and get the reward by "proof of relay". Now the cost is about 12500 $ and apy is 30% based on recent relay times ( 0.75$ per POKT , 10k nodes ,100m relays each day).
Total supply ( 2021.11.12 ) :712m
Initail supply: 650m
Current Market cap :500m $
Max supply : the amount of POKT will grow over time until the DAO caps the inflation upon maturity.
FDV: depends on the max supply
Staked POKT: 250m ( 35% of total supply. ), 26m is staked by Dapps, the other is staked by nodes.
Pre-seed :75.4 million tokens were sold for $754k ($0.01 POKT price)
Seed 33.2 million tokens were sold for $1.3 million ($0.04 POKT price)
Pre-seed and seed investors have a 1-year lockup from the date of their purchase. Extra lockup for already expired agreements:
*Mainnet + 6 months: 50% unlock
*Mainnet + 12 months: 100% unlock
(Mainnet has launched on 28th July 2020)
Mainnet sale
Two sales for 57.9 million tokens:
*7.9 million tokens were sold for $474k ($0.06 POKT price)
*50 million tokens are being sold for $4 million ($0.08 POKT price).
Tokens are locked and staked for 21 days.
End
Twitter: @NPC_Leo
wechat: luowei677329
References