What is the genesis distribution of POKT?
There is an initial supply of 650M POKT tokens. A vast majority of these tokens are non-transferable and subject to use restrictions by holders (details below), including Pocket Network, Inc. The breakdown of ownership of POKT is as follows:
How is Pocket Network structured?
Pocket Network was developed as an open-source, decentralized API protocol by Pocket Network, Inc. (PNI). PNI has created and is implementing a DAO to be the steward of the protocol moving forward. Pocket Network Foundation (PNF) enables the DAO to interact with the physical and legal world in ways that are yet unavailable to DAOs. PNI has assigned protocol IP to PNF and the DAO but will continue to be involved in the development of the protocol at the discretion of the DAO.
Who is selling POKT during pre-sales and post-mainnet?
Pocket Network, Inc. can sell up to 50M POKT to users of the platform. PNI will be making these sales directly through the Pocket Dashboard. The Pocket Foundation may also make POKT sales as necessary, in acting as it’s role as representative for the DAO.
What are the major lockup restrictions for founders, contractors/employees, and other early purchasers?
For any person or entity that has earned POKT to date, there are use restrictions and lockups in place to protect the overall health of the platform. These vary depending upon the type of POKT holder. See details:
Restrictions for addresses created in the genesis: With only several exceptions listed below, POKT will be untransferable for five unbonding periods (105 days total) from the date of mainnet launch.
Pre-Main Net Node Operator Purchases: These purchasers will be unable to transfer their tokens and will have a use restriction in place for five unbonding periods (105 days total) after mainnet.
Early Purchasers (Pre-Seed and Seed Round): Individuals, companies, or funds that have purchased tokens before launch in funding rounds will have a one-year use restriction from the date of their purchase. Those who’s year has already expired before mainnet have also agreed to an additional lockup according to the following schedule:
- Mainnet + 6 months: 50% of all purchased tokens will be able to be transferred.
- Mainnet + 12 months: 100% of all purchased tokens will be able to be transferred.
Founders/Employees/Contractors/Advisors: Vested tokens will be locked up for 12 months from May 15, 2020, and will be released on May 15, 2021.
Founder Vesting: The founders have agreed to restart their vesting upon the mainnet launch for three years. If the founders leave PNI, they will forfeit their unvested POKT.
- There will be a one-time bonus for founders upon mainnet, whereas 10% of the total POKT allocated to founders will immediately vest upon mainnet. These tokens will be subject to lockup as previously stipulated.
Decentralization bonus: Founders/Employees/Contractors are eligible to receive a one-time 18.33% bonus in POKT on their annual compensation when Pocket Network reaches a decentralization milestone. Bonus POKT is distributed when both of the following have occurred: (1) 100 nodes operating, and (2) the first DAO resolution has passed.
Pocket Network, Inc. (PNI): PNI will have several pools of POKT that have varying restrictions:
- Token Sale Pool: The token sale pool (50M POKT) will be vested from day 1 and will be available to be sold through the website upon mainnet and will slowly sell POKT to eligible users.
- Employee/Contractor Pool: This pool was created to align employees and contractors with the long term success of the platform. The employee pool POKT will be untransferable for five unbonding periods (105 days). Any tokens already distributed to the PNI team will be subject to a 1-year lockup and use restriction.
- PNI Reserves: This POKT is subject to 4 years of vesting beginning on mainnet launch. Vested POKT will be untransferable for five unbonding periods (105 days) from the date of the mainnet launch.
- Foundation Reserves: This POKT is subject to 4 years of vesting beginning on mainnet launch. Vested POKT will be untransferable for five unbonding periods (105 days) from the date of the mainnet launch.
- DAO Funds: This POKT is subject to fully vested upon mainnet launch to support the efforts of the DAO.
- Incentivized Test Net Participants: POKT will be untransferable for five unbonding periods (105 days) from the date of mainnet launch.
- MVP Participants: MVP participants will be unable to transfer their tokens and will have a use restriction in place for five unbonding periods (105 days) after mainnet.
Genesis Release Schedule
What will the foundation and DAO be doing with the funds they are vesting?
The foundation is a physical interface of the DAO. The Foundation Pool’s funds are discretionary for the Foundation Director’s use to grow the protocol. Although these are discretionary funds, Foundation Directors have a written duty to the protocol and are checked by the DAO.
The DAO Pool is specifically controlled by the DAO for upgrades and growth of the protocol. DAO members will decide what to do with the DAO Pool. The DAO will also be earning 10% of the minting rewards which will fund the future development of Pocket Network.
How will the total amount of POKT grow over time?
While the initial amount of POKT is 650M, Pocket Network uses minting to compensate nodes for performing work on the network. This means that the amount of POKT will grow over time until the DAO caps the inflation upon maturity (read more about this in our economics paper).
The growth of the number of POKT is directly related to the number of API requests being fulfilled on the network. The larger the number of API requests being fulfilled, the larger the number of POKT minted will be.
Below we have modelled out 3 different growth scenarios (Default = conservative growth scenario, Medium = a mid growth scenario, and High = an aggressive growth scenario).
The POKT Token is designed as a utility token and does, therefore, according to their structure, not constitute a security or financial instrument. Nothing in this document shall be deemed to constitute a prospectus or offer document for securities or financial instruments of any kind in any jurisdiction nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction.
The information contained in this FAQ is for general understanding purposes only. This FAQ is for discussion and presentation purposes only. The issuer endeavors to keep the information contained in this FAQ up-to-date and correct, however, the Issuer has no obligation to update or keep current any information or projections contained in this FAQ. The Issuer does not make any representation or warranty of any kind as to the accuracy, completeness, reliability, suitability or availability of the information contained and the conclusions reached in this FAQ.
The information set forth in this FAQ may not be exhaustive. The calculations and forecasts in this FAQ are essentially based on the experiences or assessments of the management of the Issuer. In this respect, this FAQ contains forward-looking statements, in particular subjective objectives of the future business development, which are associated with uncertainties and risks. Opinions, assumptions, assessments, (forward-looking) statements, or the like reflect the current state of perceptions and expectations of the Issuer and constitute only subjective views, beliefs, outlooks, estimations, or intentions of the Issuer. These perceptions and expectations may contain perception errors and errors of assessment and thus prove to be incorrect. The calculations were made with care and with commercial caution. Nevertheless, it cannot be excluded that events or developments, which were not taken into account within the calculations and forecasts, lead to significant deviations of the actual results of the Issuer and thus possibly to a deterioration in the value of the Pocket Network platform and the planned POKT Token. Opinions, assumptions, assessments, (forward-looking) statements or the like should not be relied on, are subject to change due to a variety of factors, including fluctuating market conditions and economic factors, and involve inherent risks and uncertainties, both general and specific, many of which cannot be predicted or quantified and are beyond the control of the Issuer. Therefore, there can be no assurance that the events and developments described in this FAQ can be achieved. The token purchaser bears the risk of deviating events and developments.