we can copy Bitcoin model, not just in price.
Tokenomics is a new economic structure that has been adopted by the market, and is replacing the traditional economy.
Hopefully we are all aware of the inflationary problems with POKT. I will focus on solutions to help create a strategy. We need to cut costs: I have been in charge of several companies, and in my experience cutting costs never saved a company; it just delayed the problem. In my opinion the only solution for POKT’s tokenomic’s problem is to raise demand for the token.
The market currently does not trust investing in POKT. I have invited many friends to join the network and their comments are negative in regard to inflation. So even with ChicoCrypto and many others touting the advantages and potential of POKT, not many people are interested in buying because of the poor inflationary tokenomics.
Everyone being rewarded POKT continuously in an inflationary environment has created conditions similar to a Ponzi scheme. Every day new nodes exacerbate the problem…leading to the issuing of more tokens and new node growth. This leads to more POKT selling than the market can absorb.
So what we need, and which is the only solution, is to raise demand for POKT in the marketplace and to control inflation. We need to undertake a drastic campaign to help node runners achieve economic stability.
It does not matter if tokens are frozen or not. We must burn tokens to stop the bleeding. I suggest we burn 100 million POKT tokens or more from the Treasury. This will send a powerful signal to the market which will create interest and show the team’s dedication to controlling inflation. 100 million POKT must be burned in the next 6 months while we look for stability on Version 1.
We most also stop the current minting model. Minting must be a limited to a rate fixed by the DAO, and nodes share these profits based on service. Or a combination of these two would suffice.
I suggest that newer nodes need more POKT to stake versus older nodes. And every few months or annually this staking requirement should be increased incrementally higher and higher for newer nodes. Older nodes might be referred to as “Founders Nodes” and keep their current amount of required POKT to stake. For example:
Founder Nodes 15,000 POKT, New nodes 18, 000 POKT.
We should organize a launch for wPOKT with a staking program in Polygon. However, I do not think it is a good idea to just facilitate the passage of tokens; we need a deflationary process so when someone sends POKT to Polygon, we burn a percentage of their POKT during their movement to participate in the sales and liquidity pools. This will help node runners in having more options in the market and push POKT’s price higher. This would help create a new market and is a deflationary process and thus supportive of the price.
We should create staking on wPOKT on polygon and offer 2% monthly or 3% lower than what real nodes return. This creates an opportunity to get more interest from the market for buying real nodes and generates interest from non-technical users that want to join the network.
This structure can balance production and sales and will create a more balanced and healthy ecosystem.
We should also create POKT NFT’s and sell NFT’s pegged to 1 node that receive in Polygon, profits from the nodes less their costs.
We should also invest time and energy to explore additional avenues to generate profits. I am not a POKT insider so I cannot offer concrete ideas in this regard, but these avenues should be investigated
An aggressive campaign from the DAO and Team to permanently to communicate these ideas should also be implemented.