{"id":32524,"date":"2025-04-18T06:50:07","date_gmt":"2025-04-18T06:50:07","guid":{"rendered":"https:\/\/coincentral.com\/?p=32524"},"modified":"2025-04-18T06:50:07","modified_gmt":"2025-04-18T06:50:07","slug":"pocket-networks-new-pokt-tokenomics-boosts-utility-burns-supply-to-grow-web3-infrastructure","status":"publish","type":"post","link":"https:\/\/coincentral.com\/pocket-networks-new-pokt-tokenomics-boosts-utility-burns-supply-to-grow-web3-infrastructure\/","title":{"rendered":"Pocket Network\u2019s New POKT Tokenomics Boosts Utility: Burns Supply to Grow Web3 Infrastructure"},"content":{"rendered":"

Pocket Network is entering the next phase of its long-awaited Shannon upgrade \u2014 a protocol-level transformation that expands the scope of Pocket\u2019s business and rewires its tokenomics for long-term sustainability.<\/p>\n

With usage-based burning, DAO-governed minting, and a pricing model built on Compute Units, the Shannon upgrade positions Pocket among the most cost-effective data relays in Web3 – while rewarding node operators in a supply-neutral way. Further, to incentivize meaningful adoption, it also introduces a tiered rebate system governed by the DAO.<\/p>\n

With many changes coming to the POKT token<\/a>, already trading on centralized and decentralized exchanges alike, let\u2019s dive into a breakdown of the token changes introduced in the Shannon Upgrade and what they mean for the Pocket Network ecosystem.<\/p>\n

Automatic Token Burn and DAO-led Minting<\/h2>\n

Post-Shannon, Pocket Network will support automatic, on-chain POKT token burning to pay for relay services<\/a>. Total POKT minting will be equal to POKT burned to ensure a deflationary mechanism, preventing token supply inflation. This adjustment alone puts POKT on the path to new price targets, as it immediately creates ongoing buy pressure in the marketplace while introducing a novel method of supply destruction.<\/p>\n

Although the Shannon upgrade will initially have no token supply growth, the DAO can increase the total supply through a reimbursement event if necessary. By enabling only the DAO treasury to mint tokens, the mechanism stops incidents of self-dealing through burn-mint asymmetry.<\/p>\n

Mechanism of Action: Emissions, Burn, and Pricing<\/h3>\n

Pocket Network will implement changes to offer economical relay services and sustainable POKT price growth. By upgrading their tokenomics they can reduce the computational costs making Pocket services cheaper than competitors.<\/p>\n

Each relay processed produces a proportional amount of POKT being burned, turning the token into a consumable asset tied directly to network usage – and a true utility token.<\/p>\n

The Pocket Network Foundation will introduce service-specific price changes according to supply and demand needs, providing a free and competitive market for accessing data sources.<\/p>\n

Besides new POKT minting and burning strategies, the Shannon update will significantly reduce Relay charges – making Pocket Network\u2019s decentralized infrastructure even more competitive among RPC providers and data networks.<\/p>\n

Cheaper And Competitive Relay Pricing<\/h2>\n

Pocket Network will soon become around 30-75% more cost-effective vs its contemporaries.<\/p>\n

Currently, Pocket\u2019s \u201cPay-As-You-Go\u201d Relay service can cost up to $14.30 per million Relays. Pit against today\u2019s other market leaders, Pocket can be up to 2x more expensive than competitors\u2019 $6.58 per million Relays.<\/p>\n

But the Shannon upgrade\u2019s \u201cPay Upfront\u201d model will radically reduce Relay service charges to just $2.50 per million Relays – setting a new pricing floor across the relay market. This will particularly benefit Pocket users who process data requests at scale, while also giving relay operators more predictable revenue.<\/p>\n

Volume Rebates To Boost Traffic<\/h2>\n

During the transition phase to Shannon, Pocket Network will need certain bootstrapping to maintain steady network traffic. Thus, it offers up to a 40% volume rebate to boost network activity and incentivize actors to access Pocket\u2019s services.<\/p>\n

Mechanism of Action: Volume Rebates<\/h3>\n

Since Pocket won\u2019t increase its token supply to prevent inflation, the Shannon update will bootstrap demand through volume rebates. According to the proposed plan<\/a>:<\/p>\n