As Pocket Network applications continue to grow at scale, Pocket DAO accepted a community proposal for better governance.
Pocket Network, the Web3 relay infrastructure middleware protocol, announced a new governance policy to reduce the inflation of its utility token, POKT, to manage growth and maintain the stability of node operators and high fault-tolerant incentives for Web3 scaling.
Pocket provides relay services for Web3 applications running on blockchains such as Ethereum, Polygon, Solana, Avalanche and Harmony through more than 35,000 nodes around the world.
The Pocket protocol operates a two-sided market. On the one hand, infrastructure providers run nodes to connect to the blockchain, that is, provide access to blockchain data. On the other hand, Web3 application developers can use a solid and highly fault-tolerant decentralized system to query blockchain data and provision nodes.
Infrastructure providers provide network capacity to provide blockchain relay services for application developers, and receive corresponding POKT rewards according to the number of relays provided. Developers stake POKT in proportion to the number of relays required for their applications.
The economic growth of Pocket Network is divided into 3 stages: "initial stage", which subsidizes relays for decentralized applications and allows nodes to obtain excess rewards; in the current "growth stage", the growth flywheel is successfully activated, inflation needs Effectively managed; in the future "maturity stage", the decentralized application will destroy the pledged POKT in proportion when calling the relay, so that the supply of POKT will remain stable.
The recent massive increase in relays marks the transition of the Pocket Network into a growth phase.
Pocket Network COO Adam Liposky said: "Pocket Network's token economics helped us achieve our goals." We are now transitioning from the start-up phase to the growth phase, and better management will help Pocket grow further on a global scale . We have built robust systems that properly incentivize the community while also preventing any unintended consequences that may arise from the growing network. "
The Pocket Autonomous Organization (DAO) approved the WAGMI - Weighted Annual Maximum Inflation Rate - proposal to actively manage the system's inflation rate and offset the challenges posed by inflation.
WAGMI has modified the current system and changed the original fixed reward of 0.01 POKT per relay to node operators to dynamically adjust rewards to achieve the goal of the annual inflation rate.
The target for the first adjustment in February 2022 is 100% annual inflation. Subsequent adjustments will see monthly reductions of 10% until July 2022, bringing the annual inflation rate to 50%. Once this goal is reached, the DAO will set long-term goals, continue to manage inflation, and begin implementing the burn strategy developed for the mature stage of the network to maintain supply stability as Pocket relays rapidly grow.
Jack Laing, Chief Governance Officer of Pocket Network, said: "This inflation management framework provides long-term stable returns for both node operators and our community. Even if the daily relay volume changes dramatically in either direction, there is still a guarantee that they will not got a big impact."
secondary title
About Pocket NetworkPocket
official websiteofficial website。
