- Author(s): Adam Liposky, Michael O’Rourke
- Recipient(s): API3, we would receive the equivalent amount of API3’s token
- Category: Agreements
- Asking Amount: 250,000 POKT
We propose to do a token swap with API3 that will result in relays being driven to the network. The API3 token would be owned by the Pocket DAO and held/managed by the Pocket Foundation. The Pocket Foundation Directors will vote on behalf of the Pocket DAO on all API3 DAO matters. We propose that all API3 governance matters be debated on the forum and sent to a Pocket DAO vote; the Foundation directors will be compelled to vote according to the will of the DAO.
API3 creates networks of first-party, API provider-operated oracles with decentralized governance. They would like to partner with Pocket Network and the Pocket Network DAO by acquiring POKT for throughput which will be staked as an application. The proposed plan would be to swap enough POKT for API3 to up to 10M relays per day through Pocket Network.
The relationship with API3 is an excellent way to drive relays to Pocket Network, fitting within our integration growth strategy. Staking API3’s token grants us rights to the governance of API3.
A one time transfer of 250,000 POKT of DAO treasury tokens will be made to API3. In exchange, Pocket DAO will receive the equivalent amount of API3’s token to be calculated at the time of transfer.
This relationship feeds two birds with one scone. It will serve as the DAO’s first inter-DAO strategic partnership and will drive up to 10M relays/day to the network.
There is also an opportunity to more deeply integrate with API3 for price feeds when the stability adjustment is activated with Pocket Network’s monetary policy. Currently, the Pocket Foundation is tasked with adjusting developer pricing in accordance with the DAO’s decisions. When Pocket Network’s public markets have matured, using an oracle like API3 would remove this burden from the Pocket Foundation.
- Too much POKT for a single partnership.
- API3 won’t drive the relays we believe they can.
- A swap with such an early stage token is very high risk.
- There are better ways to use the POKT we have in the treasury.
- Token Swap
- Onboarding and usage of Pocket Network by API3
Copyright and related rights waived via CC0.