The Economics
How $POKT sustains and aligns the Pocket Network.
$POKT is the core utility token of the Pocket Network. It coordinates the incentives between all actors and secures the long-term sustainability of the protocol.
The Shannon upgrade simplified and strengthened $POKT’s economics by aligning burn and mint mechanics, introducing clearer cost structures for gateways, and ensuring that value flows directly between those who consume services and those who provide them.
The role of $POKT within the protocol
Node operators stake $POKT to supply bandwidth and earn rewards for serving relays.
Sequencers (which replace the validator set from Morse) stake $POKT to secure consensus and order transactions.
Gateways purchase $POKT to pay relay fees. These fees are burned, creating a deflationary pressure on supply.
This design creates a flywheel: more gateways bring more relays, more relays increase demand for $POKT, more demand incentivizes node operators to join, and greater supply capacity improves service quality — attracting more gateways in turn.
Supply and minting of $POKT
The genesis distribution of 650 million $POKT is now almost entirely circulating. Since mainnet launch in 2020, new supply has been minted through rewards to node operators and sequencers, with a fixed share allocated to the DAO Treasury. Shannon continues this model with refined parameters:
85% of newly minted $POKT goes to node operators.
5% goes to sequencers.
10% goes to the DAO Treasury.
Supply dynamics
Distribution has followed a “fair launch” approach — $POKT is minted as permissionless rewards for work performed in securing the network and serving applications. The DAO and the Foundation do hold liquid $POKT, but their use is subject to community approval. Because of this, some data providers count these balances as circulating supply, while others exclude them.
Two main factors shape the supply of $POKT:
The amount of $POKT minted to reward operators, which adjusts over time to target sustainable margins.
The amount of $POKT burned via relay fees, which scales directly with network usage.
As usage grows, more $POKT is burned, reducing net inflation. Over time this creates a balance between supply growth and demand, ensuring long-term sustainability for both operators and the broader ecosystem.
Live Network Snapshot (Aug 2025):
Circulating supply ranges between 2.0–2.25 billion $POKT, with total supply around 2.35–2.4 billion.
Daily relay volume averages ~53 million, generating ~38k $POKT burned and ~38k $POKT minted, implying balanced inflation.
About 383 million $POKT is staked (17–19% of total supply), signaling strong infrastructure participation.
Key insights for Network Participants:
Relay Volume as a Driving Force
Relays directly lead to burns, mirroring network usage. For gateways, this means every use you drive increases protocol-wide burn pressure, naturally aligning your incentives with ecosystem profitability.
Burn vs Mint Parity and Stability
Today, burn and mint volumes are nearly balanced. This suggests a roughly neutral token inflation rate. For node operators and sequencers, it means their earning rates may remain stable if relay demand holds steady.
Stake Saturation
Around 383 million $POKT is currently staked by node operators and validators—roughly 17–19% of total supply. For participants, this signals competitive staking, which drives QoS—and eventual rewards.
$POKT remains the core utility token of the Pocket Network. Shannon cemented clear mechanics: gateways buy and burn $POKT to pay for relays, while minting flows reward node runners, sequencers, and the DAO. This establishes a transparent, real-time value loop.
What this means for agents:
Gateways should expect network usage to directly drive $POKT burning, increasing economic pressure downward on supply and boosting token value.
Node operators and sequencers benefit from stable minting rates today, but their margin could grow if burn rises and outpaces mint.
The staked ratio indicates healthy competition, which promotes high-quality service.
Now that we’ve seen how $POKT economics keep the network running today, the next step is to look ahead: what happens if growth pushes burns to outpace minting, and Pocket evolves into a deflationary network?
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