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 Token incentives Methodology

## 1. Overview

Token incentives measures the total value of POKT tokens distributed as rewards to network participants on Pocket Network, expressed in USD. This metric captures the economic incentives paid to node operators, miners, and other network participants for providing infrastructure services. The calculation aggregates rewards from different protocol versions, converts token amounts to proper decimal representation, and applies USD pricing to provide a standardized value measurement.

## 2. Data sources

- **Pocket Network fees data**: Internal scraper data containing `nodeRewards` amounts for protocol v1 (through January 11, 2022)
- **Pocket Network token incentives data**: Internal scraper data containing `servicer_amount` and `producer_amount` for protocol v2 (from January 12, 2022 onwards)
- **Token price feeds**: End-of-day POKT token price data from CoinGecko for USD conversion

## 3. Step-by-step calculation

### Component A: POKT rewards extraction
- **Purpose**: Collect raw POKT reward amounts from different protocol versions and data sources
- **Logic**: Extract rewards using version-specific parameters and date boundaries. For protocol v1 (through January 11, 2022), collect `nodeRewards` from fees data and label as "Aggregated token incentives". For protocol v2 (from January 12, 2022), collect `servicer_amount` labeled as "Node Operators" and `producer_amount` labeled as "Miners" from token incentives data. Each record includes timestamp, chain identifier, business classification metadata, and raw token amounts.
- **Key fields**: `timestamp` for daily boundaries, `amount` containing raw POKT values, `account_name` identifying reward recipient categories, version-specific parameters from configuration arrays

### Component B: Decimal correction
- **Purpose**: Convert raw POKT amounts from smallest unit to standard token representation
- **Logic**: Apply decimal correction by dividing all raw `amount` values by 1,000,000 (1e6) to convert from the protocol's smallest unit to standard POKT token amounts. This normalization ensures consistent decimal representation across all reward data.
- **Key fields**: `token_incentives` containing corrected POKT amounts with proper decimal places

### Component C: Daily aggregation  
- **Purpose**: Sum token incentives by day and dimensional attributes
- **Logic**: Group corrected token amounts by daily timestamp boundaries and all dimensional attributes including chain, business line, market sector, business segment, product, version, account name, and token symbol. Sum all `token_incentives` values within each group to calculate total daily rewards for each category.
- **Key fields**: `token_incentives` containing daily aggregated POKT amounts

### Component D: USD conversion
- **Purpose**: Convert POKT token amounts to USD values using market prices
- **Logic**: Join daily aggregated token incentives with CoinGecko daily market data using exact timestamp matching and POKT's CoinGecko identifier ('pocket-network'). Multiply each day's `token_incentives` amount by the corresponding `price_usd` to calculate USD equivalent values.
- **Key fields**: `token_incentives` containing USD-denominated reward values, `price_usd` from CoinGecko for conversion rates

### Final aggregation
- **Combining components**: All reward categories and versions flow through the same processing pipeline, maintaining separate records for different account types (Node Operators, Miners, Aggregated token incentives) while applying consistent decimal correction and USD conversion
- **Currency conversion**: USD conversion occurs at the daily level using end-of-day POKT prices from CoinGecko, applied uniformly to all reward categories
- **Time aggregation**: Daily boundaries are established using timestamp truncation to day level, with all rewards within a day aggregated together
- **Final calculation**: The metric represents the sum of all USD-converted POKT rewards distributed on each day, segmented by recipient category and protocol version, with data completeness ensured through zero-fill strategies for missing days

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

Value of native tokens distributed as incentives.

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