Who Are pNetwork Ecosystem’s Key Role Players?
Decentralized finance (DeFi) is the fastest-growing sector in the crypto space, but it still faces major challenges that may limit the trend’s growth. One of the most pressing issues is the fragmentation of liquidity, which lets assets be siloed on one blockchain or the other. The pNetwork ecosystem proposes an intelligent solution that enables assets to move across blockchain ecosystems and lets users leverage their projects of choice.
To achieve an interconnected blockchain system, pNetwork is focusing on making cross-chain transactions a common practice. This is done through pTokens, wrapped tokens on a foreign blockchain that are backed 1:1 by their underlying asset and enable the instant movement of liquidity across blockchains.
While pNetwork aims to make the user experience as simple as possible, its ecosystem involves a series of key players and processes whose interactions seem convoluted at first. To help you get more familiar with our revolutionary project, we’ll break down the ecosystem into its main parts and briefly explain who does what.
Who Runs pNetwork?
Today, the pNetwork ecosystem is open for anyone to join and contribute as a user, DAO member, or pNetwork node operator. The cross-chain connections were initially launched in a simplified form, which served as a starting point to build a more decentralized network. Improvements are being introduced over time for the control of the network to be effectively released in the hands of the pNetwork community.
pNetwork is turning into a fully decentralized network that enables everyone to become a node operator and thus support pNetwork-powered cross-chain connections. While staking pNetwork Token (PNT) — the ecosystem’s native token — pNetwork nodes fulfill the system’s decentralization aims and gradually take the leading role in the network.
The function of a node operator is to run the various cross-chain connections (pTokens bridges, pNetwork portals, etc) and support the decentralization of the system. Each of the nodes operates in a secure sandbox called Trusted Execution Environment (TEE), which serves as an extra protection shield on top of the network. In other words, node operators are responsible for collectively powering the secure cross-chain movement of assets.
Besides the network of node operators, pNetwork also hosts a Decentralized Autonomous Organization (DAO). A DAO is a community-oriented organization where the decision-making power is distributed fairly among participants. Everyone can get voting power in pNetwork DAO by staking PNT. Thus, node operators can both maintain the security of cross-chain processes as validators and also take part in the governance process as DAO members.
One key element that maintains the ecosystem balanced is the presence of incentives for all contributors. Active DAO members are rewarded for their contributions during the first 2 years of the DAO (42% APY the first year and 21% APY the second on the tokens at stake). Elsewhere, node operators are rewarded from the fees paid by users. Entities that are both node operators and active DAO members are eligible for both streams of rewards.
Members of the DAO are encouraged to participate in governance decisions that will shape the further development of pNetwork. For example, the main development team can come up with a series of Improvement Proposals (IPs) that DAO members can approve or reject.
Further stages will follow for pNetwork, each of those marking an additional improvement over the previous state.
pNetwork is devoted to the decentralized future of blockchain. Our goal is to empower the communities and encourage decentralization.
We are revolutionizing the DeFi space and welcome everyone to unleash cross-chain composability.
Are you ready to join us?
🔗 For any blockchain project looking to integrate pTokens into their infrastructure, we have also built a pTokens JS library.
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