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.

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Pocket Network

# Pocket Network Fees Methodology

## 1. Overview

The PocketNetwork fees metric measures the daily USD value of POKT tokens burned on the PocketNetwork blockchain. This metric represents the fees generated by the network through its token burn mechanism, where POKT tokens are permanently removed from circulation as part of network operations. The calculation converts raw burn events from the blockchain into standardized daily USD amounts, providing insight into the network's fee-generating activity and economic value creation.

## 2. Data sources

- **PocketNetwork blockchain events**: Raw POKT token burn events captured from the PocketNetwork blockchain, containing timestamps and burn amounts in the smallest token denomination
- **External price data**: End-of-day price feeds from CoinGecko for POKT token USD pricing, used for currency conversion

## 3. Step-by-step calculation

### Component A: Raw burn event processing
- **Purpose**: Extract and standardize POKT burn events from blockchain data
- **Logic**: Raw burn events are retrieved from PocketNetwork blockchain data, containing `timestamp` and `amount` fields representing when tokens were burned and the quantity burned. Each burn event is classified with standardized business metadata including chain identifier as `pocketnetwork`, business line as `Blockchain`, market sector as `infrastructure`, business segment as `other`, version as `v1`, and account name as `DAO burn`. The token symbol is set to `POKT` for all events.
- **Key fields**: `timestamp` (burn event timing), `amount` (raw burn quantity in smallest denomination), `token_symbol` (POKT), `account_name` (DAO burn)

### Component B: Decimal correction and daily aggregation  
- **Purpose**: Convert raw token amounts to standard POKT units and aggregate by day
- **Logic**: Raw burn amounts are divided by 1,000,000 (1e6) to convert from the smallest token denomination to standard POKT tokens. Timestamps are truncated to day boundaries to establish daily aggregation periods. All corrected burn amounts within each day are summed together, grouped by the standardized business metadata fields to produce daily totals.
- **Key fields**: `fees` (corrected POKT amounts), `timestamp` (daily boundaries), `timestamp_grain` (day)

### Component C: USD conversion
- **Purpose**: Convert daily POKT burn amounts to USD values
- **Logic**: Daily POKT burn totals are joined with end-of-day price feeds from CoinGecko using the POKT token identifier `pocket-network`. The join matches on the daily timestamp to ensure appropriate price timing. The USD fee amount is calculated by multiplying the daily POKT burn total by the corresponding end-of-day USD price.
- **Key fields**: `fees` (USD value), `price_usd` (daily POKT price), `daily_timestamp` (price feed timing)

### Final aggregation
- **Combining components**: Daily POKT burn amounts in USD are processed through a finalization macro that validates the data schema, ensures consistent business metadata formatting, and applies gap filling logic
- **Currency conversion**: USD conversion uses end-of-day CoinGecko prices matched to the exact date of the burn events to ensure accurate timing
- **Time aggregation**: Daily boundaries are established by truncating timestamps to day level, with all burns within a calendar day summed together
- **Final calculation**: The final daily fees value represents the total USD value of POKT tokens burned on PocketNetwork for each day, calculated as the sum of (daily POKT burns × end-of-day POKT price in USD)

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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