Pocket is a distributed network that relays data requests and responses to and from any blockchain system. Pocket verifies all relayed data and proportionally rewards the participating nodes with native cryptographic tokens (POKT). Essentially, Pocket is a decentralized infrastructure provider and unified blockchain-agnostic API for web3 applications that is a protocol - not a legacy SaaS business.
Wrapped POKT (wPOKT) is an ERC-20 token backed 1:1 by the native POKT on Pocket Network's blockchain and held by a set of POKT Multisig signers for verification. wPOKT standardizes POKT to the ERC-20 format, enabling and leveraging the usage of smart contracts.
wPOKT enables Ethereum users to stake for infrastructure on behalf of their favorite Ethereum applications while earning rewards. We call this Data Farming.
Data Farming provides Apps with a mechanism to crowdsource free infrastructure from their users through network-specific pools and drives liquidity to wPOKT and subsequently POKT through proven liquidity farming mechanisms.
This means there are now two opportunities for capital providers to profit from supporting Pocket Network's economy: stake POKT tokens as a Node Runner in the native Pocket Network—earning staking rewards, serving relays to Apps, and securing the network—or stake wPOKT as a Farmer—earning farming rewards, subsidizing relays for Apps, and driving more relays to the protocol for nodes to serve.
As opposed to "degen" finance, regenerative finance is about building sustainable micro-economies that enable public goods to flourish. wPOKT is our second implementation of a sustainable micro-economy - the first being POKT.
In the case of wPOKT's Data Farming, by subsidizing DApps and incentivizing the use of Pocket's decentralized infrastructure, rather than centralized alternatives, Farmers are significantly mitigating centralized points of failure in their favorite blockchain networks, restoring them to their decentralized glory.
Furthermore, wPOKT creates a virtuous cycle — the more wPOKT is staked for applications, the more decentralized infrastructure is being utilized, the more rewards are being generated, the more incentive there is to subsidize further, until eventually decentralized infrastructure is the new industry standard.
wPOKT and the accompanying Data Farming program are targeted for launch in Q1 2022. You will be able to get wPOKT to participate initially through the Liquidity Bootstrapping Pool event then shortly afterwards through the wPOKT:POKT bridge. Follow the Timeline to track progress and the Devlog for updates.