Financial Transparency

Pocket Network Foundation is a non-profit organization. Unlike a company that extracts margin from products, PNF exists to serve the protocol and community. Its sustainability depends on responsible treasury management, cost discipline, and an expanding network that generates protocol-level income.

How PNF Is Funded

1. DAO Treasury Allocation

The primary funding source. The DAO treasury receives 4.5% of all POKT minted through relay settlements. PNF submits budget requests to the DAO via PEP (Pocket Ecosystem Proposal) and receives POKT to fund operations.

Treasury income scales with usage — more relay volume means more POKT minted, and 4.5% flows to the DAO. Under PIP-41, the DAO’s share is calculated on 97.5% of total burns.

All DAO transactions are published in the public DAO transaction log.

2. Foundation Partnership Program

PNF provides dedicated, unlimited RPC access to chain foundations at wholesale cost (protocol burn only — no commercial markup). While not revenue-generating (PNF is a non-profit), this program generates resources that offset infrastructure operating costs.

3. F-Chains II Revenue Share

Under F-Chains II, PNF receives 50% of Supplier relay rewards on high-traffic chains (the other 50% goes to the node operator). This is a mechanism for DAO-staked assets to generate returns, partially offsetting the program’s cost.

The DAO Treasury

The POKT DAO treasury accumulates the 4.5% allocation from relay settlements. It is the community’s shared resource pool — controlled by DAO governance, managed by PNF as the operational arm.

Productive Treasury Deployment

A key sustainability innovation: PNF deploys DAO-held POKT productively rather than holding it idle. The F-Chains II model uses ~96 million DAO-held POKT as Supplier node stakes — generating relay rewards for both operators and PNF. The treasury earns while it waits, rather than being spent down.

PNF Cost Trajectory

PNF has committed to sustained cost reduction while maintaining effectiveness:

  • 2025: 50% cost reduction achieved
  • 2026 target: Additional 40% reduction — leaner, more focused team structure
  • Runway: Sufficient through end of 2026 without additional income

Transparency Commitments

  • All DAO treasury transactions are publicly visible on-chain and in the shared pro-forma
  • PNF submits budget proposals through the standard governance process (PEP)
  • Protocol parameters (including reward splits) are verifiable at poktscan.com/params
  • PNF directors can be appointed or removed by DAO governance vote