Pocket Network: The Decentralized Infrastructure Layer of Web3
Pocket Network (POKT) is the first middleware protocol focused on decentralized RPC (Remote Procedure Call) services, aiming to solve developers’ core dependence on centralized infrastructure such as Infura and Alchemy. By coordinating over 15,000 independent node operators worldwide, Pocket Network has built a censorship-resistant, low-cost on-chain data access network. On June 3, 2025, the project completed the critical Shannon hard fork upgrade, achieving trillion-level API request validation capabilities and supporting multi-chain smart contract interaction. According to industry sources, POKT is set to launch on Binance Alpha, potentially triggering a deep restructuring of the node ecosystem.
This Token Insights article delves into Pocket Network’s decentralized RPC service mechanism and analyzes the technical breakthroughs and node economic model brought by the Shannon upgrade.
Technical Architecture: Two-Sided Market and Cost Revolution
Core Mechanism of Decentralized Services
Pocket Network achieves value circulation through a two-sided market of developers and nodes. Developers stake POKT tokens to receive relay service quotas; 1 POKT supports approximately 1.67 relay requests per hour. This staking model drives the marginal cost of long-term high-frequency usage toward zero. For example, Uniswap’s frontend processes 100 million requests monthly, costing over $5,000 via traditional providers, while with Pocket Network, a one-time stake of 600,000 tokens ($88,000) can permanently cover the demand.
Technical Breakthroughs of the Shannon Upgrade
Activated in June 2025, the Shannon hard fork introduced three major innovations:
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Relay Minting: Using zero-knowledge proofs to compress validation data, enabling request processing speeds to exceed millions per second;
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Modular Economic Model: Expands into new services such as AI inference and on-chain oracles, opening up diversified income streams for nodes;
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Native Multi-Chain Interactions: Allows direct invocation of Ethereum smart contracts, boosting cross-chain developer efficiency by 90%.
These upgrades advance Pocket Network from a single RPC service to a general data layer for Web3. Developers can simulate node returns via the JuCoin rewards calculator.
Tokenomics: Deflationary Model and Staking Game
Closed-Loop Design for Value Capture
POKT has a fixed total supply of 1.698 billion tokens, with a circulating supply of 1.678 billion, and creates scarcity through three layers:
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Developer staking locks circulating tokens, reducing market supply;
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44% of circulating tokens (~747 million) are staked by nodes, creating a liquidity barrier;
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When wrapped as wPOKT and bridged to other chains like Ethereum, part of the cross-chain fees are burned, continuously reducing native supply.
This mechanism naturally triggers deflationary cycles as demand grows.
Potential Impact of Binance Alpha Listing
If confirmed for Binance Alpha (timing unannounced), a deep restructuring of the node ecosystem may occur. The current 44% staking rate may jump above 60%, and validator thresholds could rise from 75,000 POKT. At the same time, annual node yields (currently 8%-12%) may face dilution, prompting the protocol to adjust relay reward coefficients dynamically to balance the ecosystem. These changes will directly affect the operational strategies of over 15,000 nodes worldwide.
Solving Industry Pain Points and Competitive Landscape
Three Key Advantages Over Traditional RPC
Compared to centralized services like Infura, POKT provides superior service availability through:
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Distributed nodes that mitigate regional outage risks;
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A staking-based cost structure that brings marginal costs to zero for high-frequency use;
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Full data sovereignty, eliminating IP bans and transaction censorship risks.
This model has attracted top DeFi protocols like Aave, helping them reduce infrastructure costs by 92%.
Continued Growth of the Developer Ecosystem
Supports over 30 major blockchains, including Ethereum, Solana, and Polygon, and has processed over 2.1 trillion relay requests. With the Shannon upgrade, the modular architecture allows developers to access AI inference, real-time data streams, and more, further extending the protocol’s reach. This interoperability cements POKT as an indispensable infrastructure layer for Web3 applications.
Challenges and Response Strategies
Technical and Regulatory Stress Tests
The Shannon upgrade relies on LayerZero cross-chain messaging. If proof latency exceeds 15 seconds, service disruptions may occur. The project has deployed a backup validator cluster to handle emergencies. On the regulatory front, the U.S. SEC may classify node rewards as securities; the protocol has allocated 20% of tokens for a legal compliance fund. To comply with the EU’s MiCA regulations, anonymized processing and local proxy nodes are used for compliant data storage.
Dynamic Balancing of the Economic Model
With a 200% annual growth in node numbers and a 35% year-over-year drop in per-node returns, the protocol plans to introduce AI service revenue sharing to compensate operators. Meanwhile, dynamic fee-burning will suppress wPOKT cross-chain arbitrage behavior. These measures aim to maintain a base yield of 8% or more to retain node participation.
Future Outlook for Web3 Infrastructure
Pocket Network’s breakthrough lies in proving the commercial viability of the DePIN (Decentralized Physical Infrastructure Network) model. As the number of nodes approaches 50,000, traditional centralized service providers will be forced to transition to distributed architectures. The modular expansion enabled by the Shannon upgrade allows nodes to provide RPC, AI inference, distributed storage, and other composite services, reshaping the value distribution logic of infrastructure. When Binance brings new capital into the ecosystem, Pocket Network may become a key variable in redefining the foundational rules of Web3.
Neason Oliver
