What is the issuance amount of POKT coins?

POKT's issuance amount of 1 billion tokens ensures token scarcity, prevents inflation, incentivizes node operators, and supports ecosystem development through its distribution schedule.

Nov 30, 2024 at 12:49 am

What is the Issuance Amount of POKT Coins?

Introduction:

POKT (Pocket Network) is a decentralized network that provides a secure and reliable infrastructure for blockchain applications. The network is powered by POKT, the native token of the platform. The issuance amount of POKT coins is a crucial aspect to understand for investors and users alike.

Issuance Amount of POKT Coins:

The total issuance amount of POKT coins is capped at 1 billion tokens. This fixed supply ensures scarcity and helps maintain the value of the token. The issuance schedule of POKT is designed to distribute the tokens over time.

Distribution of POKT Coins:

The distribution of POKT coins is determined by the following factors:

1. Initial Coin Offering (ICO): 25% of the total supply was released through an ICO in 2020. Investors had the opportunity to purchase POKT tokens at a discounted price during this event.
2. Community Pool: 20% of the total supply is allocated to the community pool. This portion of tokens is intended to support community initiatives, protocol development, and ecosystem growth.
3. Team and Advisors: 15% of the total supply is reserved for the team and advisors. This allocation provides compensation and incentives for those who contribute to the long-term success of the protocol.
4. Foundation Endowment: 10% of the total supply is allocated to the Pocket Network Foundation. The foundation oversees the governance and stewardship of the network.
5. Research and Development: 10% of the total supply is dedicated to research and development. This portion of tokens funds ongoing improvements and advancements to the Pocket Network protocol.
6. Early Backers: 5% of the total supply was distributed to early backers who supported the project during its early stages.
7. Ecosystem Rewards: 5% of the total supply is reserved for ecosystem rewards, such as bounties, grants, and incentives for node operators.

Importance of Issuance Amount:

The issuance amount of POKT coins is significant because it:

• Contributes to Token Scarcity: A capped issuance amount ensures that there is a limited supply of tokens in circulation, which supports the value and price stability of the token.
• Prevents Inflation: By limiting the issuance, the protocol prevents inflation, which can dilute the value of the token over time.
• Incentivizes Node Operators: The distribution of rewards to node operators encourages participation in the network and contributes to its security and reliability.
• Supports Ecosystem Development: Allocations to the community pool and foundation support the growth and sustainability of the Pocket Network ecosystem.