What is POKT Token and how does it work?

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Pocket Network creates a permissionless, two-sided market between node providers who run full nodes and developers who want to query data from a blockchain for their application/service using a native cryptocurrency (POKT). POKT/USDT has been listed on MEXC.

Pocket Network's token has several distinguishing characteristics:

"Useful Work Proofs"
Pocket secures the state machine with Proof-of-Stake (PoS) and is classified as generalized mining or "useful proofs of work." Submitting proofs of work increases the overall supply of POKT by minting POKT in proportion to the amount of work completed. Monetary policy determines how this affects overall supply.

Transactions

Leader-selected nodes are compensated with a transaction fee for facilitating P2P POKT transfers on the Pocket blockchain. This is required for network security in order to prevent spam or "dust" attacks. The individual or entity making the transaction pays a transaction fee, 99 percent of which is burned, and the remaining 1% is awarded to the leader-selected node for including transactions in the relevant block. The 1% fee incentivizes block producers to include transactions in the following block.

Token Staking

Within Pocket, there are two types of stake functions: StakeApp() and StakeNode() (). The POKT cryptocurrency is used in both stake functions. The minimum staking period is 21 days when they call the StakeApp() function. By incurring the minimum unstaking period, Applications forego the opportunity cost of using their resources, POKT in this case, for other alternatives. Furthermore, Applications pay through dilution, in which a specific sum of POKT is awarded to the relevant Service Nodes in the next block reward each time a Relay is serviced and validated by the network.

When nodes invoke the StakeNode() function, the minimum staking period is 21 days, just like with applications. The minimum stake required at launch to become a Service Node is 15,000 POKT. This node stake maintains node integrity and incentivizes nodes to provide high-quality service. Furthermore, a sufficient stake enables nodes to participate in PoS consensus as a Validator Node.