What is Pocket Network (POKT)?

Deep Dive

1. Purpose & Value Proposition

Pocket Network addresses Web3’s reliance on centralized infrastructure (e.g., AWS, Infura) by creating a decentralized network of node operators. These nodes serve blockchain data requests (RPC relays) for dApps, ensuring uptime even during outages. By decentralizing this “plumbing layer,” Pocket mitigates single points of failure, a critical vulnerability highlighted by AWS disruptions in October 2025.

2. Technology & Architecture

The protocol operates on Proof-of-Stake (PoS), where node operators stake $POKT to validate transactions and earn rewards. Its Shannon Upgrade (Q2 2025) introduced:
- Permissionless Access: Developers and node runners no longer need approvals to join.
- Generalized Data Transport: Supports AI inference, indexing, and cross-chain data beyond traditional blockchain RPCs.
- Token Logic Modules: Modular tokenomics allow dynamic adjustments for different data markets.

3. Tokenomics & Governance

$POKT is the protocol’s utility token with two primary functions:
- Node Incentives: Operators earn $POKT for servicing data relays.
- Developer Access: Developers stake $POKT to access network bandwidth (1M free relays/day).
The Shannon upgrade introduced deflationary “relay minting,” burning tokens per data request to balance supply. Governance is community-driven via the POKT DAO.

Conclusion

Pocket Network is a foundational layer for decentralized data access, combining scalable infrastructure with tokenized incentives to reduce reliance on centralized providers. With Shannon enabling permissionless, multi-chain interoperability, can it become the default backbone for AI and Web3’s data needs?