# 🏗️ Builder All Hands

**URL:** https://forum.pokt.network/t/builder-all-hands/5032
**Category:** Roundups
**Created:** [February 9, 2024, 4:11am UTC](https://forum.pokt.network/t/builder-all-hands/5032 "2024-02-09T04:11:02Z")
**Posts on this page:** 1
**Showing post:** 3

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### Author: ![PoktNews](https://forum.pokt.network/letter_avatar_proxy/v4/letter/p/22d042/32.png) [@PoktNews](https://forum.pokt.network/u/PoktNews)
#### Post date: [February 23, 2024, 11:24am UTC](https://forum.pokt.network/t/builder-all-hands/5032/3 "2024-02-23T11:24:21Z")

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# BUILDERS ALL-HANDS (FEB 22ND)

Call Highlights:

🏗 Morse & Shannon Tokenomics (Useful QoS)  
🏗 Shannon Testnet Update  
🏗 Grants Update  
🏗 Karma Gap Demo

## Morse Tokenomics:

- Currently, for every one POKT burned by gateways, 135 POKT is minted for nodes. This setup could lead to self-dealing, with Gateways potentially directing traffic to their own nodes for a 13,000% gain. Crazy!  

- In Morse, Gateways operate on a permissioned basis, requiring legal contracts signed with PNF to prevent self-dealing.  

- But the burn-to-mint ratio isn’t all bad, as it creates a staking economy where stakers can earn up to 9%. This incentivizes holders to lock up their POKT.  

## Shannon Tokenomics:

- In a permissionless Shannon world, the ideal tokenomics would look like this  
👇  
 ![image](https://forum.pokt.network/uploads/default/original/2X/1/179f963390f5dd7c31cadbe0e33c3cf27d2c1750.jpeg)
- But we are a long way away from 25 billion daily relays at Shannon launch. Having a 1:1 Burn/Mint ratio with only 400 million relays currently, stakers would receive significantly reduced rewards, which would essentially kill the staking economy.  
 ![image](https://forum.pokt.network/uploads/default/original/2X/5/5a368cb34a260c91a4ed555e14efd43ff58511f3.jpeg)

This leads to SHANNON’s TOKENOMICS TRILEMMA.

_How do we roll out Shannon with an economic model that ticks all the boxes – permissionless gateways, self-dealing checks, and staking rewards that keep stakers from day one?_

 ![image](https://forum.pokt.network/uploads/default/original/2X/6/6344e4740852ba93d609f878474878e25ab6fe36.jpeg)

One proposed solution to solve it is “Useful QoS” (working title), proposed by @shane.

# Useful QoS:

- Useful QoS is about penalizing nodes that are not useful for app/gateways. If a node can’t operate in a manner that is useful for apps and gateways it is jailed. Gateways are incentivized to find the best nodes and nodes are incentivized to meet their quality requirements.

- Useful QoS would:  
- Distribute rewards equally to all nodes in a session, eliminating the incentive for Gateways to target own nodes.  
- Jail nodes that constantly perform poorly or do not perform at all in multiple sessions.  

- It would also delay rewards for 6 sessions to ensure that only useful nodes are rewarded. This delay allows the network to identify and penalize underperforming nodes before rewards are distributed.  

- This solution is theoretical and research is still underway to figure out a few of the mechanics. But very interesting indeed.  

# Now for the other updates:

- Goal to have Shannon’s migration from Cosmos SDK 0.47 to 0.50 completed before #ETHDenver.

- A reminder that [bounties](https://discord.com/channels/553741558869131266/1204567822622269521) are live.

- [Karma Gap](https://gap.karmahq.xyz/pokt.), a Quick Grants management and impact reporting tool, is also live .  

# FIN!

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_[View the full topic](https://forum.pokt.network/t/builder-all-hands/5032)._