POKT Network is a DePIN (Decentralized Physical Infrastructure Network) protocol designed to serve as Web3's RPC (Remote Procedure Call) base layer. The POKT Network protocol was first launched on Mainnet in July 2020. ^[1][2]

History

The POKT Network emerged from the founders' experiences with Infura, a prominent Ethereum API service, during 2016 and 2017. Recognizing the reliance on centralized gateways in decentralized ecosystems, they envisioned a protocol for scalable, decentralized infrastructure. ^[3]

As decentralized applications gained traction, developers faced trade-offs between cost, decentralization, privacy, and quality of service. The anticipated significance of the Web3 data infrastructure market stems from the proliferation of Web3 applications and diverse blockchains. Despite centralized providers driving billions of API calls, there are significant costs and risks of outages, as seen in cases like MetaMask. Developers lack the resources to host their own nodes, leading to overreliance on centralized providers. ^[3]

Overview

POKT Network is a decentralized platform that significantly enhances blockchain interoperability and functionality by linking users across several blockchain networks. It leverages over 20,000 independent nodes worldwide, providing a resilient, decentralized alternative to traditional RPC services. ^[4]

Launched in 2017, the POKT Network acts as a connector between various blockchain networks and their users, providing a reliable decentralized alternative to traditional, centralized RPC services. ^[1][3]

POKT Network Entities

POKT Network Foundation (PNF)

The POKT Network Foundation (PNF) is a non-profit, credibly neutral entity that is trusted by POKT Network's DAO to drive the ecosystem’s success, facilitate governance, empower contributors, nurture values, and preserve POKT Network's open source IP. ^[7]

‍POKT DAO

This is a community governed by its participants on a 1-person 1-vote basis, with a gini coefficient of 0 (perfect equality). The role of the POKT DAO is to be a place for all stakeholders in the ecosystem to coordinate on important questions and decisions and to uphold and propagate the POKT DNA. ^[8]

Node Operators

These are independent entities that stake $POKT to service or validate relays and earn $POKT from the Protocol. Many of these are active members of POKT DAO as well as technical contributors to the Protocol. ^[9]

POKT Network Gateways

Grove

The original gateway into POKT Network was established in 2021 to optimize QoS from the protocol. ^[9]

Nodies

This is the second gateway and the architects of the Open Source Gateway Server that will facilitate the growth of Gateways. ^[9]

On April 9, 2024, POKT Network announced 3 new Gateways to POKT Network - Developer DAO, Porters (backed by Raid Guild), and Chainstack. ^[17]

Each of these new Gateways will benefit from the scalability and robustness of the universal RPC base layer, while growing the demand that flows through it all by building better features and services, tailoring for specific use cases, and optimising performance.^[17]

Technology

Decentralized Node Marketplace

Differing from centralized options such as Infura, POKT Network doesn’t own any nodes. Instead, it links users to a worldwide network of independent providers, known as Service Nodes. This structure reduces costs, boosts reliability with a 99.9% uptime, and guards against censorship. ^[4]

$POKT Token Mechanism

Operation within the network is driven by the $POKT token. Both customers and Service Nodes deploy $POKT as security to participate. Users send requests for blockchain connections that the software routes to Service Nodes efficiently. These nodes manage blockchain interactions and data transmission, maintaining service continuity even when individual nodes experience issues.‍ ^[4]

The POKT token drives the network's economy, motivating engagement and participation within the ecosystem. Governance of the network is managed by a Decentralized Autonomous Organization (DAO), upholding transparent and fair decision-making processes. ^[6]

Validation and Rewards

Validator Nodes assess the authenticity of transactions handled by Service Nodes. When transactions are verified as legitimate, POKT deducts from the user’s staked collateral, allocating 89% of the fees to the Service Node, 1% to the Validator Node, and 10% to the community-managed PocketDAO. ^[1][4]

Shannon Upgrade

The Shannon Upgrade is the next major upgrade for the Pocket Network Protocol, aiming to debut a major shift with its implementation as a micro-rollup using Rollkit’s modular framework, integrating Celestia as the Data Availability layer. Shannon was deployed to Celestia's Mocha Testnet in April 2024 and the team aims to launch it on MainNet by the end of Q2 2024. ^[4][5]

Initiated in August 2023, Shannon (v1️) marks a strategic pivot for the development team, moving away from a complex system design to a simpler, more modular approach. This pivot was inspired by the realization of the need to focus more sharply on the utility of the decentralized RPC and streamline new feature developments. ^[5]

POKT Tokenomics

The POKT Network's tokenomics are defined by its supply, minting rate, and distribution strategy. Initially, the network had around 650 million POKT tokens. 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. ^[6]

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. ^[4][6]

Partners

Thesis Defense

On February 15, 2024, POKT Network announced a partnership with Thesis Defence as the security audit partner for POKT Network’s upcoming Shanon upgrade. This transition is of importance to the project and Thesis Defenses’ series of comprehensive security audits will ensure that security is first and foremost as POKT moves towards mainnet launch. ^[16]

‍“After deeply evaluating more than 10 different audit firms, Thesis Defense stood out for their expertise, experience and motivation. We are confident that they will not only audit POKT Network, but make it a better protocol, helping it to achieve its full potential.” says Daniel Olshansky, Head of Protocol at POKT Network. ^[16]

Other partners include:

• Monday Capital ^[10]
• Fuse^[11]
• Polygon^[12]
• BadgerDAO^[13]
• Evmos^[14]
• OKC ^[15]
• Dabble Lab
• Portis
• Nodesmith
• Protofire
• Tezos Foundation

Team

• Jack Laing - Director at POKT Network Foundation
• Dermot O'Riordan - Director at POKT Network Foundation
• Daniel Olshansky - Head of Protocol at POKT Network
• Michael O’Rourke - Co-Founder at POKT Network and CEO of Grove (the first Gateway)^[9]