Applications (or gateways staking on behalf of applications) pay for RPC data requests by staking and burning POKT. Node operators serve RPC data requests for applications and receive block rewards (token incentives) in proportion to their work done.

Pocket Network is a decentralized infrastructure protocol (a blockchain) that provides RPC data for blockchains. Pocket Network was founded by Michael O’Rourke and launched in 2020.

Pocket Network is governed by the Pocket Network DAO. Pocket Network's investors include Placeholder, 1kx, Arrington Capital, etc.

github

twitter

discord

website

Infrastructure

Pocket Network

# Pocket Network Earnings Methodology

## 1. Overview

Pocket Network earnings represent the protocol's net income, calculated as revenue minus expenses. Revenue comes from POKT token burns that represent fees paid by users, while expenses consist of token incentives paid to network participants (Node Operators, Miners, and aggregated incentives). The calculation handles two protocol versions with different reward structures and converts all values to USD using end-of-day price feeds.

## 2. Data sources

- **Pocket Network scraped burns data**: Token burn events representing fees/revenue generation
- **Pocket Network scraped fees and rewards data**: V1 protocol reward parameters including node rewards (used until January 11, 2022)
- **Pocket Network scraped token incentives data**: V2 protocol reward distribution data including servicer and producer amounts (used after January 11, 2022)
- **End-of-day token price feeds**: CoinGecko daily market data for POKT token USD conversion

## 3. Step-by-step calculation

### Component A: Revenue calculation (from token burns)
- **Purpose**: Calculate protocol revenue from POKT token burns
- **Logic**: Extract all POKT burns from scraped burns data, truncate timestamps to daily boundaries, correct for token decimals by dividing amounts by 1,000,000, aggregate total burns per day, and convert to USD using end-of-day CoinGecko price data for POKT token. All burns are classified as 'DAO burn' account type within the 'Blockchain' business line.
- **Key fields**: `timestamp` for daily aggregation, `amount` for burn quantity, `token_symbol` as 'POKT'

### Component B: Token incentives calculation (expenses source)
- **Purpose**: Calculate token incentives paid to network participants across two protocol versions
- **Logic**: For V1 protocol (until January 11, 2022), extract `nodeRewards` parameter from fees data and classify as 'Aggregated token incentives'. For V2 protocol (after January 11, 2022), extract `servicer_amount` as 'Node Operators' and `producer_amount` as 'Miners' from token incentives data. Divide all amounts by 1,000,000 to correct for POKT token decimals, aggregate by day and account type, then convert to USD using end-of-day CoinGecko price data.
- **Key fields**: V1 uses `nodeRewards`, V2 uses `servicer_amount` and `producer_amount`, `timestamp` for daily boundaries, `account_name` for participant classification

### Component C: Expenses calculation
- **Purpose**: Transform token incentives into protocol expenses
- **Logic**: Take the calculated token incentives values and treat them as expenses, maintaining the same USD amounts, timestamps, and account classifications. Apply schema standardization and gap-filling with zero values for missing days.
- **Key fields**: `token_incentives` becomes `expenses`, preserving timestamp and account structure

### Component D: Revenue aggregation
- **Purpose**: Standardize revenue data from burns
- **Logic**: Take the USD-converted burn amounts and classify them as revenue, applying the same schema standardization and gap-filling approach. Truncate timestamps to daily boundaries and sum all burns within each day.
- **Key fields**: `fees` becomes `revenue` in standardized schema

### Final aggregation
- **Combining components**: Revenue and expenses are combined using the calculate_earnings macro, which subtracts total daily expenses from total daily revenue for each date
- **Currency conversion**: All amounts converted to USD using CoinGecko end-of-day price feeds matched by date and POKT token identifier
- **Time aggregation**: Data aggregated to daily boundaries using timestamp truncation, with all intraday events summed together
- **Final calculation**: Daily earnings = Daily revenue from token burns - Daily expenses from token incentives, with zero-filling applied for dates with missing data

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Pocket NetworkPOKT

Archived

Earnings

Earnings

Competitive landscape