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 Revenue Methodology

## 1. Overview

Pocket Network revenue represents the USD value of POKT tokens burned as network fees. In Pocket Network's tokenomics model, fees paid by applications for blockchain API requests are burned (permanently removed from circulation) rather than distributed to validators, making these burns equivalent to protocol revenue. The metric calculates the daily USD value of all POKT tokens burned on the network.

## 2. Data sources

- **Pocket Network burns data**: Raw POKT token burn events captured from the Pocket Network blockchain through automated scraping
- **Token metadata**: POKT token decimal precision (1,000,000 or 1e6) and CoinGecko identifier ('pocket-network') for price lookups
- **End-of-day price feeds**: Daily POKT token prices in USD from CoinGecko's market data API

## 3. Step-by-step calculation

### Component A: POKT burns extraction
- **Purpose**: Identify and standardize all POKT token burn events from the blockchain
- **Logic**: Raw burn events are extracted from Pocket Network blockchain data and classified with standard metadata. Each burn event includes a timestamp, burn amount in raw blockchain units, and is tagged as 'DAO burn' activity with 'POKT' as the token symbol. All burns are categorized under the 'Blockchain' business line and 'infrastructure' market sector.
- **Key fields**: `timestamp` (burn event time), `amount` (raw burn amount), `token_symbol` ('POKT'), `account_name` ('DAO burn')

### Component B: Decimal correction and daily aggregation  
- **Purpose**: Convert raw blockchain units to human-readable token amounts and aggregate by day
- **Logic**: Raw burn amounts are divided by 1,000,000 (POKT's decimal precision) to convert from the smallest blockchain units to whole POKT tokens. Burns are then truncated to daily timestamps and grouped by day. All burns occurring on the same day are summed together to calculate the total daily POKT fees burned.
- **Key fields**: `fees` (decimal-corrected burn amounts), `timestamp` (daily truncated), `timestamp_grain` ('day')

### Component C: USD conversion
- **Purpose**: Convert daily POKT burn amounts to USD values using market prices
- **Logic**: Daily aggregated POKT burn amounts are joined with end-of-day POKT prices from CoinGecko using the daily timestamp and POKT's CoinGecko identifier ('pocket-network'). The daily POKT fees are multiplied by the corresponding daily USD price to calculate the USD value of burns for each day.
- **Key fields**: `fees` (USD-converted burn amounts), `price_usd` (daily POKT price), `daily_timestamp` (price date)

### Final aggregation
- **Combining components**: The fees calculation output (daily USD-valued POKT burns) directly becomes the revenue input, as burns represent protocol revenue in Pocket Network's economic model
- **Currency conversion**: USD conversion occurs at the daily level using end-of-day POKT prices from CoinGecko
- **Time aggregation**: Data is aggregated to daily boundaries, with all burns within a calendar day summed together
- **Final calculation**: Revenue equals the USD value of all POKT tokens burned on each day, calculated as daily POKT burns multiplied by daily POKT price in USD

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

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