# PEP-5: Allocate POKT from the DAO Treasury to Launch/Support the wPOKT Program

**URL:** <https://forum.pokt.network/t/pep-5-allocate-pokt-from-the-dao-treasury-to-launch-support-the-wpokt-program/750>\
**Category:** Ecosystem\
**Tags:** approved\
**Created:** [March 4, 2021, 4:09pm UTC](https://forum.pokt.network/t/pep-5-allocate-pokt-from-the-dao-treasury-to-launch-support-the-wpokt-program/750 "2021-03-04T16:09:27Z")\
**Posts on this page:** 1\
**Showing post:** 6

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**Author:** ![JackALaing](https://forum.pokt.network/user_avatar/forum.pokt.network/jackalaing/32/39_2.png) [@JackALaing](https://forum.pokt.network/u/JackALaing)\
**Post date:** [March 10, 2021, 9:27pm UTC](https://forum.pokt.network/t/pep-5-allocate-pokt-from-the-dao-treasury-to-launch-support-the-wpokt-program/750/6 "2021-03-10T21:27:13Z")

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> [@EarlyPoktSupporter](#):
>
> Once the wPOKT goes live, the TG OTC buy-side activity will essentially dry up

This assumes that none of the current buy-side activity is in it to run nodes, just to own POKT, which I don’t believe is true. There will always be people looking to run more nodes, because it is a long-term investment in a sustainable business (for node operators) vs a short-term incentive program in wPOKT farming.

> [@EarlyPoktSupporter](#):
>
> While on the supply side, the sell pressure will only increase with growing rewards/nodes per entity/relays.

This would honestly be a good thing relative to the current situation, because the supply-side of the OTC is a lot drier than the buy-side right now.

> [@EarlyPoktSupporter](#):
>
> making it difficult for small budget node runners to cover their operating expenditure

Per my above point (dry sell side), we’re not getting any indication that many node operators are selling POKT to cover operating expenses, since mainnet launch in June.

> [@EarlyPoktSupporter](#):
>
> bears large inventory risks for as long as 1-3+ months until the bridge opens up

This assumes that the bridge and the OTC are the only sources of liquidity. Following [PEP-4](https://forum.pokt.network/t/pep-4-pokt-listing/496), a committee is currently pursuing CEX listings for POKT.

> [@EarlyPoktSupporter](#):
>
> unless the POKT earns significantly higher yield to compensate for this disadvantage

I believe this is already the case.

We are allocating 50,000 POKT to wPOKT yield for the first pool, which will last 6 months. This will support an additional 15M relays/day, or a total of ~20M relays/day based on current relay counts. For ~183 days (6 months), this is a total of ~3.66B relays over the 6 month period, which based on service node rewards (89% of 0.01 POKT/relay), is 32.57M POKT, or 651X the yield of wPOKT farmers. You might then ask why people would bother with wPOKT when the yields are higher in POKT; that’s where the convenience and liquidity of wPOKT comes in.

Also, it’s worth considering competition in this equation. The same liquidity that makes it easier to exit out of wPOKT also makes it easier to enter into wPOKT. This means individual yields are much more likely to be competed down on the wPOKT side than the POKT side.

All that said, while I don’t think the situation would be as dire as you imply, I do still generally support launching the bridge at the same time if it can be done.

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_[View the full topic](https://forum.pokt.network/t/pep-5-allocate-pokt-from-the-dao-treasury-to-launch-support-the-wpokt-program/750)._