The first adjustment, implemented in February, targeted a 100% annual inflation rate. Subsequent adjustments will be made in 10% deductions on a monthly basis, until July 2022, where the annual inflation rate will become 50%. Once this target has been reached, the DAO will be able to set new longer-term targets and continue to progressively manage inflation as Pocket Network rapidly grows relays, ultimately implementing a supply-stabilizing burn strategy planned for the maturity phase of the network.
“This inflation management framework provides node runners and our community with stable rewards over the longer term,” said Jack Laing, Chief Governance Officer at Pocket Network. “If daily relays were to change drastically in either direction, they are no longer exposed to supply shock.”
Stabilizing the supply of POKT will ensure that Pocket Network’s decentralized ecosystem will continue to be attractive to both niche infrastructure providers currently overseeing over 35k full nodes and application developers. With this long-term sustainability to growth, Pocket Network can more effectively fulfill its mission to provide fully decentralized Web3 infrastructure and grow market share.
About Pocket Network Pocket Network, a blockchain data ecosystem for Web3 applications is a platform built for applications that uses cost-efficient economics to coordinate and distribute data at scale. It enables seamless and secure interactions between blockchains and across applications. With Pocket, the use of blockchains can be simply integrated into websites, mobile apps, IoT and more, giving developers the freedom to put blockchain enabled applications into the “pocket” of every mainstream consumer. For more information visit pokt.network.