Summary: Established in 2017, POKT Network provides a decentralized Remote Procedure Call (RPC) solution, connecting users to over 50 layer 1 and layer 2 blockchains, both EVM and non-EVM. The network operates with more than 20,000 global nodes, delivering secure, fast, and reliable access to blockchain data.
At its core, the POKT token incentivizes node operations and drives network governance through a DAO, offering a robust and cost-effective alternative to centralized node services.
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What is POKT Network?
POKT Network, established in 2017, is a decentralized physical infrastructure (DePIN) protocol designed to support and enhance blockchains. It primarily operates as a bridge between various blockchains and their users, offering a robust and decentralized alternative to traditional, centralized RPC services. The network supports over 50 layer 1 and layer 2 chains, making it a versatile and inclusive platform for data access and transaction verification.
Central to POKT Network's functionality are its node runners and gateways. The network boasts over 20,000 independent, globally distributed nodes, ensuring a high degree of security and reliability with an impressive 99.99% uptime and latency under 50ms. This infrastructure is accessible through gateways like Nodies and Grove, which serve as user access points to blockchain data. These gateways, alongside a growing community of contributors, play a vital role in maintaining and expanding the network's capabilities.
At the heart of POKT Network's economy is the POKT token, a key component that incentivizes participation within the ecosystem. The network's governance is overseen by a DAO (Decentralized Autonomous Organization), which embodies the principles of transparent and equitable decision-making.
How Does POKT Network Work?
POKT Network serves as a decentralized marketplace for RPC (Remote Procedure Call) nodes, fundamentally changing how blockchain data access and transaction processing are handled. Here’s a concise explanation of its workings:
- Decentralized Node Marketplace: Unlike centralized services like Infura, POKT Network doesn't own the nodes. Instead, it connects users to a global network of independent node providers, called Service Nodes. This decentralization offers reduced costs, increased reliability with 99.9% uptime, and resistance to censorship.
- $POKT Token Mechanism: The network operates using the $POKT token. Both customers and Service Nodes stake $POKT as collateral to participate. Users request blockchain connections, and POKT's software efficiently routes these requests to Service Nodes. These nodes facilitate blockchain interaction and relay data, ensuring continuous service even if individual nodes fail.
- Validation and Rewards: Validator Nodes check the legitimacy of transactions processed by Service Nodes. For valid transactions, POKT debits the user's staked collateral, distributing 89% of the payment to the Service Node, 1% to the Validator Node, and 10% to the community-governed PocketDAO.
This system positions POKT Network as a versatile, cost-effective, and reliable solution for Web3 applications. It addresses the centralization and reliability issues prevalent in traditional node providers, making it an integral part of the evolving multi-chain crypto ecosystem.
What Chains Does POKT Support?
POKT Network supports various EVM and non-EVM blockchains, providing extensive coverage across the cryptocurrency ecosystem. This includes major EVM chains like Ethereum, Binance Smart Chain, Polygon, AVAX, Optimism, Optimism, Arbitrum, and AVAX, all known for their compatibility with the Ethereum Virtual Machine, facilitating a wide range of decentralized applications and smart contracts.
In the realm of non-EVM chains, POKT Network extends its support to innovative networks such as Solana, Cosmos, and Polkadot, each offering unique functionalities and contributing to the richness of the blockchain landscape.
POKT Token Staking
POKT staking is integral to the POKT Network's functioning, involving these key aspects:
- Purpose: Staking is essential for operating Service Nodes, crucial for relaying and validating transactions on the network. It is a security deposit, ensuring node operators' reliability and commitment.
- Requirements: To run a Service Node, operators must stake a minimum amount of POKT tokens, determined by network governance. This staking acts as collateral, locked for a specific duration. Currently, the minimum stake is 15,000 POKT for node runners and 75,100 POKT for validators.
- Rewards for Node Operation: Service Nodes earn rewards in POKT tokens for processing data requests, with the rewards proportionate to their contribution.
- Validator Nodes: Besides Service Nodes, Validator Nodes also stake POKT tokens for validating transactions, earning rewards for their validation efforts.
- Governance Participation: Staking also enables participation in the network’s governance, allowing stakeholders to vote on key protocol decisions.
- Unstaking Risks: Unstaking involves a waiting period and risks losing a portion of staked tokens if the node operator acts against the network's interests.
In essence, POKT token staking is a fundamental process that supports network security, incentivizes node operations, and allows for governance involvement, aligning stakeholder interests with the network’s well-being.
The POKT Network's tokenomics are defined by its supply, minting rate, and distribution strategy. Initially, the network had around 650 million POKT tokens, with most now in circulation. The minting rate dynamically targets about 220,000 POKT daily, adjusting based on relay demand. For distribution, 85% of minted tokens are allocated to node runners, 5% to validators, and 10% to the DAO treasury.
The supply dynamics are influenced by factors like node runner rewards, the number of relays, and gateway transaction fees. These elements, combined with the market price of POKT, determine the token's supply growth and circulation, ensuring the network's economic balance and sustainability.
The POKT Network, established in 2017, stands out as a key decentralized infrastructure in the blockchain space, bridging various networks and users with its DePIN protocol. Supporting over 50 blockchains, including both EVM and non-EVM types, it provides versatile and inclusive access for blockchain interactions. The network's over 20,000 nodes and user-friendly gateways guarantee high security and reliability.
Central to its ecosystem, the POKT token incentivizes participation and governs through a decentralized model. With its strategic approach to staking and tokenomics, POKT Network ensures a balanced, secure, and community-led environment. This makes it an indispensable and efficient component in the Web3 landscape, poised to support the multi-chain future of blockchain technology effectively.