Handling the macroeconomy of the Pocket Network is not a simple task, and it is harder to do if the community is not focussed on solving the problems that we need to solve.
Based on the document presented previously we created four actionable subjects. We believe that these subjects are the ones that the community needs to focus on:
Change Minting Mechanism
Current minting mechanism do not provide a mid-to-long term answer to the minting problem of the Pocket Network. We have created a proposal to address this problem:
Mint Incentivizing Network Transformation (MINT)
Create POKT retention mechanisms
The current price of the token and emission reduction proposals are pushing some token holders out of the Pocket ecosystem creating more pressure in the balance of payments. In order to diminish the effect of this and keep long term holders in the system while reducing the resulting minting, we propose to develop a mechanisms such as bond. Bond offers the assurance of regular interest payments and repayment of the principal amount at maturity, however the critical benefit it limits the mobility of POKT. These mechanisms were also proposed by some community members in the Telegrams chats, in the form of “locking up” capital until v1. You can read the whole subject in the following topic:
Pocket Network Bonds and Interest Rates
Show clarity on Pocket Network V1 economy
As chatGPT Peter Drucker said:
The best way to predict the future is to create it.
We need to create the conditions of a healthy economy in V1, and this means that we need to account for emissions and sinks of POKT from any network actors (Gateways, Apps, Fishermen/Watchers, Servicers, Validators, DAO). How we layout the token distributions (minting, burning and staking) is very important to provide macroeconomic perspective. We created a post to discuss this:
Pocket Network V1 Macroeconomic Needs
Create money inflow into the ecosystem
Arguably one of the main drivers of POKT high exchange rates during the late 2021 was the high demand for the token to stake nodes. This money inflow was larger than the enormous sell pressure (infrastructure costs) that the network had at that time. Today we have a much lower sell pressure, however the exchange rate is still depressed. We think that we need to address this by making the access to the POKT token easier and provide new tools for investments acquisition, specifically a futures market. See the discussion on this subject in the following thread:
Some speculation on the presence or absence of a risk-free rate
What now?
We invite the community to engage in the threads that we have proposed. To keep things orderly we request to keep the discussions of each subject in their respective threads. We will not answer about them here, we will re-direct your posts to the specific thread if you do.
If you wish to comment on the holistic view of the actionable list and/or the macroeconomic document that serves as base to our approach, please do so in this thread. We are open to discuss any inquiries that you have.
The Pocket Network is making great progress in reorganizing their structures and separating groups with different interests (i.e. PNI - PNF). Part of this reorganization must include an improvement in the approach to technical subjects.We believe that the DAO should focus on:
- Data-centric decision making
- Formal analysis of complex subjects
- Proper publishing of results
Most of the work that we do is based on forum interactions, which are by far the most civilized channel that our community has. Providing feedback in forums help the community to build up a knowledge base. Fully developed ideas usually take lots of time to write and read but also have the larger impacts, wether they are forum posts, documents or blog posts.
If we succeed in these subjects, will all Pocket Network’s problems disappear?
No, we can successfully address all these points and fail.
As we said before, the economy is a social science, results are never guaranteed. What we believe is that by ignoring these subjects the economy will not recover. Miracles can happen tho, but that’s not an excuse for not doing nothing… As Machiavelli said:
I judge it to be true that fortune is the ruler of half of our actions, but also that she allows us to direct the other half, or perhaps a little less.