The pNetwork is the increasingly decentralised layer powering and governing the cross-chain pTokens solution. This is currently fueling the widest cross-chain system available to date, interconnecting 5 different blockchains and wrapping 13M+ USD in liquidity.
Announced last week, pNetwork Dawn is a network of node operators tasked with powering interoperability for dApps, and enabling cross-chain trading, lending and collateralization.
Today, we are introducing pNetwork Nodes. The backbone of the pNetwork, nodes carry out the essential role of moving pTokens towards a decentralized infrastructure.
How node operators fit within the pNetwork?
The pNetwork is an open, public and independent network with an inbuilt governance structure (Aragon-based DAO).
As previously mentioned in the pNetwork Litepaper as well as update blogs, building a decentralized network to unchain liquidity is a crucial goal the pNetwork community is working towards.
pNetwork node operators are the entities running the cross-chain infrastructure (hardware and software) that secures every pTokens bridge running on the pNetwork. Nodes operate the crucial cross-chain infrastructure to ensure that smart contracts and dApp users across every blockchain have access to assets’ value and liquidity.
These cross-chain node operators are responsible for watching the blockchain for new incoming requests for asset switches from one network to another and ensuring the requested asset tokenisation process happens correctly.
pNetwork Stats and incentives for running a pNetwork Node
Anyone can set up a pNetwork node and secure the movement of BTC (and other non-native assets) into the DeFi ecosystem!
In other words, pNetwork is open for entities big and small to join the network and help to shape a better (more decentralized) world.
PNT, the cryptocurrency native to the pNetwork, is used to govern the system and coordinate node operator incentives. PNT holders can contribute to the success of the project by participating in the pNetwork DAO and by joining the network as node operators. Nodes can benefit from DAO staking rewards as well as peg-in and peg-out fees.
Currently, pNetwork is responsible for the wrapping of 20+ tokens, expanding them beyond their native blockchain. This accounts for 13M+ USD in liquidity locked within pNetwork!
pNetwork enables 3,000+ holders to stay local on their blockchain of choice while thinking global.
Thanks to the integration of pNetwork with major Ethereum DeFi protocols, including Curve and Uniswap among others, BTC on Ethereum represents the most leveraged pTokens bridge to date.
pBTC is a Bitcoin-pegged asset available through pTokens. With the custom-made pTokens dApp, anyone can securely mint their own pBTC — pegged 1:1 with BTC.
pBTC on ETH accounts for 5M+ USD in liquidity locked within pNetwork and it is adopted by 600+ Ethereum users. As outlined by Etherscan, the count of pBTC transfers to date equals to 16,500 transactions — that is 1.85% of its centralised alternative WBTC.
As for pBTC on EOS, the asset has rapidly established itself as the go-to solution for EOS-users willing to engage with the Bitcoin cryptocurrency. pBTC on EOS is the 17th biggest token on the network by marketcap and it claims similar trading volumes as to the ones of EOS itself.
Although DeFi is a growing and promising industry, similarly to Ethereum, pNetwork is not exclusively tight to it, but it can be leveraged for a variety of use-cases. As the blockchain ecosystem continues to grow, we aim for pNetwork to play a significant role in the industry.
What are the incentives for pNetwork node operators?
As mentioned, pNetwork nodes are a critical component for the security of the pNetwork. For this reason, the protocol aims to reward their operation by redistributing the fees generated by the system to its contributors. While the founding team is subsidizing peg-in and peg-out fees to make pTokens operations free for users, a fee system will be introduced to make it sustainable for nodes to operate.
Other than accruing pNetwork DAO staking rewards (accrued by all active DAO members), nodes will benefit from peg-in and peg-out fees once those are introduced.
Fees will be automatically distributed to node operators as they are paid by users, in the pTokenised asset they have unchained.
For example, node operators contributing to a BTC asset switch would be rewarded in pBTC. Similarly, when contributing to an ETH asset switch, operators are rewarded in pETH.
We expect a DAO vote to determine a system for fees distribution across node operators shortly after launch — more details on the proposed peg-in and peg-out fee structure will be published for discussion in the coming weeks and will ultimately be vetted by the pNetwork DAO.
What a pNetwork Node needs to operate?
The pNetwork cli (pcli) is the go-to tool for managing the pNetwork node lifecycle. Through pNetwork cli, node operators can proceed to the initial setup of the node and subsequent handling of its operations.
A guide helping you through the set up of the pNetwork node is available at docs.p.network.
An important step is for operators to register their node so that it is effectively recognised as part of the pNetwork. The node needs to be connected with the Ethereum address staking the required amount of PNT within the pNetwork DAO.
pNetwork nodes are required to stake within the pNetwork DAO an amount of 200k PNT tokens for a minimum period of 3 months.
Registration of the node is a mandatory step that enables node operators to both be rewarded for their contribution to the system and be slashed to disincentivise malicious behaviours (future use). The pNetwork node and the Ethereum address are required to have a 1:1 connection, so that each Ethereum address holding PNT is linked to one node.
Welcome to pNetwork Dawn!
🔗 For any blockchain project looking to integrate pTokens into their infrastructure, we have also built a pTokens JS library.
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