Deep Dive
1. Deflationary Tokenomics via v1.31 (Mid-January 2025)
Overview: This protocol upgrade changed Pocket Network's core economics. Now, when apps pay fees for data, a small portion of the POKT supply is permanently destroyed, creating built-in scarcity.
The v1.31 consensus upgrade enforces the PIP-41 governance proposal. It changes the token mint/burn cycle: 100% of relay fees are burned, but only 97.5% are re-minted as node rewards. This creates a trustless, algorithmic 2.5% net supply reduction for every transaction cycle, directly tying deflation to network utility.
What this means: This is bullish for POKT because it creates a natural economic mechanism where increased usage leads to token scarcity. For node runners, rewards per relay are slightly lower, but the potential for each token to be more valuable rises if demand grows. (Source)
2. Shannon Upgrade Completion (10 November 2025)
Overview: This marked the successful end of a major technical migration, transforming Pocket from a blockchain RPC service into a general-purpose "open data fabric."
The upgrade involved a full chain, token, and infrastructure migration. It introduced permissionless demand-side access, automated mint/burn tokenomics, and generalized data transport. With this complete, core developer Grove concluded its centralized role, handing protocol maintenance back to a decentralized, open-source engineering model.
What this means: This is bullish for POKT because it unlocks massive growth potential. The network can now serve AI models, standard web APIs, and other data sources, making it useful for far more applications. This broader utility can drive significantly more demand for POKT tokens. (Source)
3. MainNet Readiness & Launch (Closed June 2025)
Overview: This GitHub milestone tracked the final development work needed to launch the Shannon network on MainNet and migrate all users from the old chain.
The milestone, closed in June 2025, focused on resolving blockers for the MainNet launch. It encompassed the critical final testing, coordination, and deployment tasks required to ensure a stable and successful network transition for all node operators and applications.
What this means: This is neutral for POKT as it represents completed foundational work. It was a necessary step that de-risked the major Shannon upgrade, ensuring the network launched smoothly without service interruptions for developers relying on it. (Source)
Conclusion
Pocket Network's recent codebase trajectory shows a mature protocol transitioning from major foundational upgrades to fine-tuning its economic engine. The completion of Shannon unlocked new markets, while the subsequent deflationary tokenomics update strategically aligns long-term token value with network growth. How will the shift to a fully decentralized development model impact the pace of future innovation?