How wPOKT Staking Subsidizes Infrastructure for Free Tier Applications? | wPOKT ELI5 Series
As mentioned in the previous episode of this series, the wPOKT erc20 token let’s Pocket Network tap into the programmable composability and utility of Ethereum smart contracts, including our very own wPOKT farming program!
By forking Ampleforth’s contract, we’re building a micro-economy that enables DApp end-users to get more involved in the web3 ecosystem. Giving users the opportunity to crowdsource infrastructure access on behalf of their favorite applications while earning a wPOKT yield — Regenerative Finance.
What do we mean by crowdsourcing infrastructure access?
It’s another way of saying that users (or regen farmers) are subsidizing the daily blockchain network bandwidth of applications allotted within our free tier program, covering up to 1,000,000 requests per day.
Rather than paying Infura or Alchemy a few hundred dollars per month, applications can instead ask community members to cover their blockchain infrastructure costs.
How? By staking wPOKT on their behalf in exchange for wPOKT rewards! For every wPOKT staked in the program, Pocket Network stakes the equivalent for applications participating in the farm(s).
Currently, relay throughput of 1M daily requests requires a one-time stake of ~25,000 POKT. Essentially, farmers will be collectively staking an average of 25k wPOKT per application participating in the wPOKT data farming program.
The first wPOKT regen data farm sponsors the daily relay throughput of a basket of applications (to be announced soon) that are using Pocket Network. Because of the ability to add a custom RPC endpoint to MetaMask wallets as an end-user, we’ve decided to unofficially include MetaMask into the genesis farm. We’ve already subsidized 10M relays daily for MetaMask users who add a Pocket-powered Ethereum RPC endpoint to their MetaMask wallet. As part of the first basket, farmers using MetaMask are now crowdsourcing their very own censorship-resistant Ethereum network bandwidth by staking nearly 250k wPOKT.
But don’t wait to make the switch to a Pocket-powered Ethereum endpoint, follow this tutorial to learn how to add a custom RPC endpoint to your MetaMask wallet!
So, how does the rewards work?
The longer a regen farmer stakes and the more wPOKT a farmer stakes wPOKT relative to others’ stake, the larger share of the unlock pool/farm they’ll receive. Rewards earned are based on total ownership of unlocked rewards in a farm.
The wPOKT data farming program is designed to naturally incentivize long-term staking so applications in a farm have uninterrupted service and access to their allotted network bandwidth. While there are no hard lockup periods for staking wPOKT, there is a benefit for farmers to keep their staked positions longer in order to unlock bonus periods!
When a farmer starts staking wPOKT, they begin at a 1x bonus multiplier of their reward earnings. This multiplier increases linearly throughout the staking period, to a maximum of 3x. For every month staked, farmers receive an extra x on their rewards multiplier. After one month, a 2x bonus multiplier. Then after two months, a farmer would unlock a 3x bonus multiplier.
As new applications onboard into the wPOKT data farming program, a new app-specific (or network-specific) farm can be raised, each with their own varying degrees of wPOKT yield/reward rates.
To be alerted for the LBP and wPOKT data farm program launch, sign up for email updates on the wPOKT website:
Stay tuned for the next episode where we explain how the economic flywheels of wPOKT and POKT interact!
🌉Connect with Pocket:
👾 Visit the Pocket Network Website
🦜 Follow Pocket on Twitter at @POKTnetwork
💬 Chat with the Pocket team and community in Discord
♻️ Learn more about wPOKT
