Thanks for the info. I thought it was hardcoded.
So I guess once the 1 BLN hits, the DAO goes through a vote?
hi everyone
im revisiting my concerns about inflation from the perspective of a node runner who is very interested in price.
There are more pokt tokens printed than total volume traded in a day. This is during peak twitter “education” and retail interest, the difference was much larger before pokt burst onto the scene.
This means that node runners that want to sell build up vast amounts of pokt in times of no liquidity and rush to sell when there is liquidity available. It becomes a game of chicken where the big players know that everyone else is sitting on lots of pokt they want to unload. Instead of a healthy grind up for the token, it becomes feast and famine in which there are bursts of interest which are smothered.
This has the effect of trapping a lot of new buyers into high cost basis nodes. Yes, the same happens with all tokens, but the effect is far more pronounced in high inflationary environments where not all participants are aware of the amount of pokt build up that needs to be sold, and short term sellers are more likely to sell out “no matter what” when much of the pokt they got was free.
IMO, the costs of this setup do not outway the benefits. we want to foster an environment where there is sustainable access to exit liquidity for all node runners that need to take profit, not a great rush for the exit which inevitabely happens when more supply is minted than demand.
3 Likes
I think this is an important consideration which hasn’t been well addressed.
2 Likes
Overall, I support the WAGMI proposal and the idea of increasing the DAO’s allocation that has been brought up in a few of the earlier comments.
There are two related topics I wanted to raise:
- Reward distribution : A small number of chains reaping most of the rewards.
- Implementation : Feasibility of a variable reward multiplier.
Reward distribution
Problem : The strength and utility of the Pocket Network comes from having as many nodes as possible servicing as many different chains as possible. With Harmony being a significant source of relays today, WAGMI might create a disincentive for node runners to support new chains with a very small volume of relays due to the low return at the tail end.
Potential Solution : Implement WAGMI on a per-chain basis. This will create an incentive to add support for newly added or low volume chains, yielding higher rewards, until the network finds an equilibrium for supply & demand of service nodes. Note that this will likely increase Pocket nodes’ storage and compute requirements.
Implementation
Problem : Implementing a continuous function to compute variable rewards may be difficult given the current block-by-block nature of claims and proofs that are independent of each other. Additional state will need to be maintained to compute relay rewards on a rolling basis of some number of blocks.
Potential Solution : There is no way to avoid additional state storage (or compute) to implement this consensus-breaking change, but I believe a piecewise step function approximates the WAGMI plot with a parameterized terminal value would work as well.
3 Likes
I will add that high inflation may deter some investors but not the the ones that benefit to the system, or not as much as investors that see high APR and want to stake.
One of the first question people ask in grouo after the bought the token is, can i stake? So yes you can, it is a litt different here so some education is needed, but like it drew a lot of attention and growth so far it will continue to do so.
Just want to show another side of high APR, and people understand high APR means high inflation, if they don’t? Practice brings perfection… Lol… Peace✌️
1 Like
i finally processed everything you spoke off 
first i see it as a perfect solution that can be perfected further with time. the high APR is neither good or bad as long as it serves a purpose, in our case it fulfill only part of the purpose, that part is allowing the network to grow in term of node count. the second purpose of this high inflation is that we are providing the service for free in order to acquire clients and build reputation, the payment comes from the minting process of pokt. this marketing is amazing and it is similar in the defi space for LP and staking, the problem for projects is that most work with capped supply so the APY ends sooner than later, people leave and the project is suffocating. here on pokt there is not limit but we are burning our free subscriptions for one game, defi kingdom .
if we want to maximize our marketing strategy we want to offer this package of free use to more Dapps:
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we need to start lowering the APR each month gradually, to protect node operators who bought the top lately and new ones who are just joining from getting caught in a sharp change, we will do so till we reach our desired APR value, this will slow down the minting and prolong our free USE for new clients created by this inflation.
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if it’s possible to adjust the WAGMI APR for a specific project , this will be the holy grail with a project like defi kingdom who is responsible for a lot of the inflation.
do we have a number in mind how many tokens we wish to have at the end of this growth phase?
how much the network is being utilized today in % in term of relays and dapps?
do we have a number of nodes we expect to have in 6 and 12 months time?
what is the USD value ± we wish for each node to lock? this is directly correlated to supply, price and this is a thing i am unsure how easy it is t change? it can 2x or 3x or reverse and cut the amount of nodes.
got carried so i will stop here 
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i am for the WAGMI, it will simply give us control, regarding the numbers? we will discuss and vote on it :
another thought that came to mind is to start “charging” defi kingdom to burn some of their staked pokt, it can even be a time frame based that after 6 months or X amount of relays of free use, a project begins to burn a certain amount of pokt. now i am way off topic…lol
thx for bringing such an elegant and flexible solution!
2 Likes
Sorry for the noob question, but Why not give POKT other use case utility value as well? Begin implementing POKT to have currency value, to draw in investors, and create scarcity? Is this not possible?
Really like the proposal and strongly we should move toward that long term.
Poket not being ERC20, not being on major exchange, having strong inflation etc … has allowed our grassroot community to stay free from moonboys.
With wrap $pokt on the horizon, having strong inflation as it comes lives would help mitigate inflow of speculators (disincentive join or punish free riding), and we could change the inflation params couple months after the initial wpokt hype?
Idk just random thoughts
PUP-11 passed with 67% quorum and 100% support. Snapshot
This proposal doesn’t specify WAGMI targets, see PUP-13 (which also passed) for details.