PXKT Airdrop spec


#1

This is an initial proposal. All is open for debate - please give feedback and comments to ensure as smooth a release as possible for the airdrop.

Introduction

Airdrops are a proven method of bootstrapping network participation for decentralized protocols. Pocket Network will require staking of the POKT token for usage of the protocol and its tools as well as a vote in the Decentralized Autonomous Organization (DAO). PXKT tokens will be distributed to developers and nodes using the current iteration of the Pocket Node or Pocket SDK’s for staking and participation in the Simple DAO (SDAO) on the Ethereum Network. All PXKT tokens will be swapped into POKT when the Pocket Protocol is live, which will allow for greater usage of the POKT token.

PXKT Token

As an ERC20 token on Ethereum, the token will allow for staking and voting within the SDAO. Holders of these tokens will be able to do a swap for POKT, the cryptocurrency for the Pocket Network when it is live.

The total amount of tokens will be a pre-mine of ~10% or less of all POKT tokens at maturity when the protocol is live. The rest will get mined and minted over time by the users of the protocol. Pocket Network is a permanently inflationary cryptocurrency, and we cannot know exactly the amount of tokens that will be generated when the protocol is at maturity (stable total supply, predictable inflation or predictable deflation).

We will have a better idea of maturity when the testnet is live with better understanding of network-wide staking and burning percentages. We expect to have a tool for these forecasts in Q4 2019.

Simple Decentralized Autonomous Organization

The SDAO will have 5 specific functions:

  1. Propose/Review bounties for the Pocket Improvement Process
  2. Approve/Deny applications for Verified Nodes
  3. Approve/Deny bounties for meeting requirements to setup a Verified Node
  4. Approve/Deny proposals to support the onboarding of a Quality dApp projects
  5. Approve/Deny proposals to support the onboarding of an ecosystem partner(tools/strategic partnership)

The creation of the SDAO will enable future Validator Nodes and Developers to participate in the governance of the PXKT token. The SDAO will be given 20% of all created tokens. Verified Nodes are whitelisted Ethereum addresses with a vote in the DAO. Verified nodes will have a minimum stake of 10,000 PXKT tokens within the SDAO.

At initial launch, the Pocket Network Node will be only Verified Node. Through a careful Know Your Node (KYN) vetting process, the Pocket Network Node will distribute its single voting power to new participants. These Verified Nodes will be on a public directory along with the services they provide and blockchains they support. All new Verified Nodes must go through the same vetting process.

Proposals and votes in the SDAO

To create a proposal in the SDAO, the proposer must burn 100 PXKT tokens. The proposal must adhere to a specific template standard provided by Pocket Network, Inc. Proposals will be open for voting on the 1st of every month by all Verified Nodes. It is not mandatory for Verified to vote on proposals. All vote results will be blind until the end of the voting period.

SDAO contract

The Pocket Network Inc, team will have permanent ownership of the SDAO contract and reserve the right for any updates to the contract. This includes adjustment to the staking amounts, new voting functions, new additions other than Verified Nodes (Verified Developers), etc.

Due to the experimental nature of this SDAO, at launch Pocket Network Inc.’s Verified Node Ethereum address will have the right to remove (but not add) new Verified Nodes into the registry. Should the SDAO move forward successfully, the expectation is that function to remove Verified Nodes will be cancelled in time.

We will use the AragonOS set of smart contracts for all major functions as seen here. This will significantly decrease development time and allows us to use tested and proven code.

Token Details

The PXKT token will have all ERC20 standard functions, including the burn() function for the SDAO.

Network: Ethereum

Total Supply: 1,000,000,000

  • 400,000,000 for founders (Vested 4 years from Pocket Inc’s creation)
  • 260,600,000 for company and flexibility for future issuance
  • 120,000,000 for the SDAO (SDAO will handle the Airdrop payouts)
  • 150,000,000 for early employees and contributors (Vested from employment and contribution date)
  • 69,400,000 for early seed investors in the Pocket Network

All tokens will be in corresponding smart contracts with proper vesting and distribution based on legal agreements with founders, investors, employees and contributors.


Updated DAO Charter
#2

The token name should be POXT (POcket eXchange Token), the K in PXKT seems a little bit misplaced (Pocket eXchange K Token), phonetically sounds similar to POKT but the K doesn’t have any meaning.


#3

I support this motion to change the name to POXT, as the acronym is easily understood, explains the function of the token, even if it sacrifices phonetical catchiness.


#4

My thoughts behind using PXKT was not as an acronym for Pocket Exchange Token, but a series of letters that allows the easy logical replacement of “X” and “O”. Our minds will naturally replace the vowel “O” with an “X”, kind of how research shows that disemvoweling requires little cognitive effort.

I’m not sure why it needs to be an acronym for eXchange token, when it’s a placeholder for POKT, which is an acronym for Pocket. I also feel like the transition from people pronouncing P-X-K-T instead of P-O-X-T would be easier cognitively.


#5

Re: Naming

I immediately grasped PXKT as a placeholder for POKT, I would support the orginal proposal for PXKT. To mikes point of disemvoweling.


#6

Ok More Feedback

Do you mean the specifications? Little more clarity here would be helpful.

Total amount of what tokens? Can you add the example you sent to me in chat?

We should add the piece that “we will develop a tool for real time estimates and forecasts based on our token minting algortim in Q__ of 20___”

Does generated mean “Mined” or “Issued to Relay Node Validators” ??? More clarity here is helpful.

I propose we update this to something like
"The SDAO has 5 major functions

  1. Propose/Review bounties for the Protocol Improvement Process
  2. Approve/Deny applications for Verified Node network
  3. Approve/Deny bounties for meeting requirements to setup a Verified Node
  4. Approve/Deny proposals to support the onboarding of a Quality dApp projects
  5. Approve/Deny proposals to support the onboarding of an ecosystem partner(tools/strategic partnership)
    "

Thoughts?


#7

Thanks for these questions Pat.

Not sure what you mean by specifications here.

There is a premine of maximum 10% of all tokens. The rest will get mined and minted over time by the users of the protocol. I don’t want to specify Validators yet because there is a concept of “rollover” relays for developers discussed that hasn’t been finalized yet.

I say maximum 10% because at this time we cannot predict what maturity will be for the protocol. I am defining maturity as a stable total supply, predictable inflation or deflation. We will have a better idea of this when we have a testnet with better understanding of network-wide staking and burning percentages.

As you have in your suggestion, we will have a tool for these forecasts in Q4 2019. Will edit in post.

Good points, will add these.


#8

I’m wondering what “current iteration of the pocket node” means? That why I asked about specs.

That helps, thank you.

What do you think about that roadmap I drafted? Want me to update this proposal to include it?

Looking good!


#9

Right now we’re using the Pocket Node, but at some point we’ll make the switch to Pocket Core which is the Go client. If you’re using a deprecated version of the client, we will opt not to give out any tokens until upgraded.

I think so. Should wait for the v2 though.


#10

This is an initial proposal. All is open for debate - please give feedback and comments to ensure as smooth a release as possible for the airdrop.

Introduction

Airdrops are a proven method of bootstrapping network participation for decentralized protocols.

Pocket Network will require staking of the POKT token for usage of the protocol and its tools as well as a vote in the Decentralized Autonomous Organization (DAO).

PXKT tokens(description below) will be distributed to developers and nodes using the current iteration of the Pocket Node or Pocket SDK’s for staking and participation in the Simple DAO (SDAO) on the Ethereum Network. All PXKT tokens will be redeemable for POKT when the Pocket Protocol is live, which will allow for greater usage of the POKT token.

PXKT Token

As an ERC20 token on Ethereum, the token will allow for staking and voting within the SDAO. Holders of these tokens will be able to do a swap for POKT, the cryptocurrency for the Pocket Network when it is live.

The total amount of tokens will be a pre-mine of ~10% or less of all POKT tokens at maturity when the protocol is live. The rest will get mined and minted over time by the users of the protocol. Pocket Network is a permanently inflationary cryptocurrency, and we cannot know exactly the amount of tokens that will be generated when the protocol is at maturity (stable total supply, predictable inflation or predictable deflation).

We will have a better idea of maturity when the testnet is live with better understanding of network-wide staking and burning percentages. We plan to have a tool for these forecasts in Q4 2019.

Simple Decentralized Autonomous Organization(SDAO)

The SDAO will have 5 specific functions:

  1. Propose/Review bounties for the Pocket Network and complimentary code.
  2. Approve/Deny applications for Verified Nodes
  3. Approve/Deny bounties for meeting requirements to setup a Verified Node
  4. Approve/Deny proposals to support the onboarding of a Quality dApp projects
  5. Approve/Deny proposals to support the onboarding of an ecosystem partner(tools/strategic partnership)

The creation of the SDAO will enable future Validator Nodes and Developers to participate in the governance of the PXKT token. The SDAO will be given 20% of all created tokens. Verified Nodes are whitelisted Ethereum addresses with a vote in the DAO. Verified nodes will have a minimum stake of 10,000 PXKT tokens within the SDAO.

At initial launch, the Pocket Network Node will be only Verified Nodes. Through a careful Know Your Node (KYN) vetting process, the Pocket Network Node will distribute its single voting power to new participants. These Verified Nodes will be on a public directory along with the services they provide and blockchains they support. All new Verified Nodes must go through the same vetting process.

Proposals and votes in the SDAO

The Pokt DAO will be using AragonOS for organization and governance of DAO participation.

To create a proposal in the SDAO, the proposer must burn 100 PXKT tokens. The proposal must adhere to a specific template standard provided by Pocket Network, Inc. Proposals will be open for voting on the 1st of every month by all Verified Nodes. It is not mandatory for Verified Nodes to vote on proposals. All vote results will be blind until the end of the voting period.

SDAO contract

The Pocket Network Inc, team will have permanent ownership of the SDAO contract and reserve the right for any updates to the contract. This includes adjustment to the staking amounts, new voting functions, new additions other than Verified Nodes (Verified Developers), etc.

Due to the experimental nature of this SDAO, at launch Pocket Network Inc.’s Verified Node Ethereum address will have the right to remove (but not add) new Verified Nodes into the registry. Should the SDAO move forward successfully, the expectation is that function to remove Verified Nodes will be cancelled in time.

We will use the AragonOS set of smart contracts for all major functions as seen here 1. This will significantly decrease development time and allows us to use tested and proven code.

For decision making outside of simple yes no votes, the Pokt SDAO discussions will take place as threads on the DAO forum channel and we may use other tools to help faciliate product decentralized decision making.

Token Details

The PXKT token will have all ERC20 standard functions, including the burn() function for the SDAO.

Network: Ethereum

Total Supply: 1,000,000,000

  • 400,000,000 for founders (Vested 4 years from Pocket Inc’s creation)
  • 237,550,000 for company and flexibility for future investors and funding rounds
  • 205,000,000 for the SDAO (SDAO will handle the Airdrop payouts)
  • 150,000,000 for early employees and contributors (Vested from employment and contribution date)
  • 7,450,000 for early seed investors in the Pocket Network

All tokens will be in corresponding smart contracts with proper vesting and distribution based on legal agreements with founders, investors, employees and contributors.

PXKT DAO 2019 - Closed Engagement Period

In order to refine the governance process and organization structure of the live POKT DAO upon Mainnet release, the PXKT DAO will be carefully rolled out in a way that maintains quality of participants, and not overrunning of the DAO by coordinated efforts.

Goal: 150 Verified Node/Developer contributors. - Launch Date - Mid January

Phase: 1
Length: 4 Weeks
Participants: 11
Goals:

  1. Qualifications for Verified Nodes
  2. Approve next 14 Applicants
  3. V.1 DAO Charter
  4. Define Roles & Responsibilities.
  5. Approve or Deny Open Proposals

Phase: 2
Length: 6 Weeks
Participants: 25
Goals:

  1. Approve next 35 Applicants
  2. Qualifications for Verified Devs
  3. Approve or Deny open proposals

Phase: 3
Length: 6 Weeks
Participants: 60
Goals:

  1. Approve next 35 Applicants
  2. Draft V.2 Charter for 2020
  3. Approve or Deny open proposals

Phase: 4
Length: 6 Weeks
Participants: 95
Goals:

  1. Approve next 40 Applicants
  2. Approve or deny open proposals
  3. Continue V.2 Charter

Phase: 5
Length: 10 Weeks
Participants: 135
Goals:

  1. Approve final 15 Applicants
  2. Approve or deny open proposals
  3. Establish Election process for DAO committee

Phase: 6
Length: 12 Weeks
Participants: 150
Goals:

  1. Approve additional Applicants(If total is less than 150)
  2. Approve or deny open proposals
  3. Elect 7 Committee members
  4. Revise V.2 Charter for Committee roles
  5. Mainnet preparation work

Outstanding Considerations.

  • Mechanics of Proposal Process
  • Mechanics for communication
  • Roles & Responsibilities of DAO committee

Worked out of this google doc


#11

Did another pass at the spec. included onboarding, may need to seperate the DAO Spec with the onboarding plan, but this is helpful for us.

Also changed a bit of wording in places, as well as adding the consideration of loomio where aragon decision making may fail.

It looks like aragon only has simple yes no voting. If we are discussion proposals, the forum or loomio for decision making will be more effective.

thoughts


#12

Yes, we’ll have to discuss all proposals elsewhere. I’ve never used Loomio but I think keeping the debates on proposals here makes sense.


#13

I agree, i’ll null loomio for the time being, or if its required, we can nest it into this forums discussions


#14

Upon seeing the title of this doc, “PXKT Airdrop spec”, I looked forward to reading it because I’m interested in the mechanics of airdrops. However besides the first para, which notes that airdrops are:

There is no other mention of the airdrop besides the supply breakdown:

So there’s no indication of how the airdrop may work.

This doc seems to be more about initial steps for governance. If that’s the intention, maybe remove “Airdrop spec” from the title. (But I’m still curious about the workings of the airdrop :))


#15

Thanks for the feedback. We will be updating this post next week with a full charter that hopefully answers all of your questions.


#16

Thanks Kit,

These questions are addressed in the “DAO Charter” we drafted. We are doing some internal rounds with it right now and then I will post it here for public feedback.


#17

Kit, I would like to point you over to the updated DAO charter. Took a bit longer than expected but hopefully this answers most of your questions.

Closing this topic to send conversation over to the new post.


#18