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.
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.
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:
- Propose/Review bounties for the Pocket Improvement Process
- Approve/Deny applications for Verified Nodes
- Approve/Deny bounties for meeting requirements to setup a Verified Node
- Approve/Deny proposals to support the onboarding of a Quality dApp projects
- 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.
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.
The PXKT token will have all ERC20 standard functions, including the burn() function for the SDAO.
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.