POKT Network

What is POKT Network?

Launched in 2017, POKT Network is a decentralized protocol designed to enhance blockchain functionality. It connects various blockchain networks and users, offering a reliable decentralized alternative to traditional centralized RPC services. Supporting over 50 Layer 1 and Layer 2 chains, it provides extensive data access and transaction validation.

POKT Network operates through node runners and gateways, ensuring strong security and performance with over 20,000 independent nodes globally. Users access blockchain data via gateways like Nodies and Grove, essential for the network's reach and growth. The POKT token drives the network's economy, incentivizing ecosystem participation, and the network's governance is managed by a decentralized autonomous organization (DAO) promoting transparent, fair decision-making.

How Does POKT Network Operate?

POKT Network is a decentralized platform for RPC nodes, revolutionizing blockchain data access and transaction processing:

· Decentralized Node Market: Unlike centralized solutions like Infura, POKT Network connects users with a global network of independent service nodes, enhancing reliability with 99.9% uptime and reducing costs.

· $POKT Token Mechanism: The network operates on $POKT tokens. Users and service nodes stake $POKT to participate, with requests efficiently routed to service nodes handling blockchain interactions and data transmission.

· Verification and Rewards: Validator nodes assess the legitimacy of transactions processed by service nodes. Upon validation, 89% of fees are distributed to service nodes, 1% to validator nodes, and 10% to the PocketDAO community treasury.

This structure makes POKT Network a versatile, economical, and reliable choice for Web3 applications, addressing traditional node provider issues of centralization and reliability.

Supported Chains

POKT Network supports a variety of EVM and non-EVM blockchains, covering a wide crypto ecosystem:

· EVM Chains: Ethereum, Binance Smart Chain, Polygon, AVAX, Optimism, Arbitrum, and others.

· Non-EVM Chains: Solana, Cosmos, Polkadot, among others, contributing unique features to the blockchain landscape.

POKT Token

$POKT is integral to POKT Network's operation:

· Purpose: Staking $POKT is required to run service nodes and is crucial for relaying and verifying transactions, ensuring node operator reliability.

· Requirements: Operators must stake a minimum amount of $POKT, currently 15,000 POKT for service nodes and 75,100 POKT for validator nodes.

· Node Operation Rewards: Service nodes earn $POKT for handling data requests, proportional to their contribution.

· Validator Nodes: These nodes use $POKT for transaction verification and earn rewards for their validation work.

· Governance Participation: Staked $POKT allows stakeholders to vote on important protocol decisions.

· Unstaking Risks: Unstaking requires a waiting period, and operators risk losing part of their staked tokens if their actions harm the network.

POKT Token Economics

POKT Network's token economy is determined by its supply, minting rate, and issuance strategy. Initially, the network had about 650 million POKT tokens, most of which are now in circulation. The minting rate targets 220,000 POKT daily, adjusted based on relay demand. Token distribution allocates 85% to node runners, 5% to validators, and 10% to the DAO treasury.

Supply dynamics are influenced by node rewards, relay numbers, and gateway transaction fees, combined with POKT's market price, ensuring economic balance and sustainability.

Conclusion

POKT Network is a pioneering decentralized protocol effectively connecting various blockchain ecosystems, enhancing data access and transaction processes. With a robust network of over 20,000 nodes and a strong token mechanism, POKT ensures high security, uptime, and decentralized access, making it a crucial infrastructure for Web3 applications. The upcoming Shannon upgrade will further simplify its architecture and enhance utility, solidifying its role in the multi-chain environment.

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