MaxRelays
) it can use is locked in perpetuity unless the Application re-stakes that POKT or their stake is burned.StabilityAdjustment
, ParticipationRate
, and BaseThroughput
aim to dynamically reflect POKT's usage and ensure that Applications will be able to enter the ecosystem adjusting to changes in the market price of POKT.BaseThroughput
by the total ParticipationRate
of the protocol to reflect any changes in demand for Relays, then the DAO will use the StabilityAdjustment
in the short-term to correct deviations from the $USDPerRelay Target that are most likely attributed to short-term changes inherent in the random walk of the cryptocurrency/FOREX markets. If the StabilityAdjustment persists above/below zero without resetting, we can attribute the deviation from the $USDPerRelay Target to a more permanent change in POKT's market value, at which point the DAO will update BaseRelaysPerPOKT and reset StabilityAdjustment to zero.StabilityAdjustment
parameter helps smooth out pricing for applications because there is a menu cost associated with changing BaseRelaysPerPOKT
too often. Applications will be reliant on a relatively stable real $USDPerRelay
price to access throughput. Community resources and consistent communication will help them make decisions about how much POKT to stake at any given moment.$USDPerPOKT
to measure how close the real $USDPerRelay
price is to the DAO's current $USDPerRelay
Target. Short-term fluctuations will therefore be arbitrary depending on which currency has been chosen to anchor the DAO's price target against and what is happening day-to-day in the crypto and FOREX markets; today $USDPerPOKT
might change by 5% but €EURPerPOKT
only changes by 1%. It is important that we don't let short-term fluctuations impact the stability and accessibility of the network.StabilityAdjustment
to dynamically adjust the MaxRelays
computed in the Protocol Throttling Formula, while only changing our “menu price” (BaseRelaysPerPOKT
) when there is a long-term deviation that can be more assuredly attributed to long-term changes in POKT's value.StabilityAdjustment
will be updated at the discretion of the DAO.ParticipationRate
is a tool to dynamically adjust max relays for applications without the intervention of the DAO as network usage changes. ParticipationRate
acts as a proxy for utilization of the network and is reflected on a block by block basis, adjusting an Application’s MaxRelays
dynamically based on the growth or decline in network-wide stake rates. Participation Rate is calculated by:BaseRelaysPerPOKT
is a uint64, governed by the Pocket DAO, which describes the baseline number of Relays the Pocket DAO aims for each Application to receive per POKT staked. As a multiplier, changing this number more significantly impacts MaxRelays than changing StabilityAdjustment
. For further granularity, BaseRelaysPerPOKT
can be expressed as:$USDPerRelay
price as close to the $USDPerRelay
Target as possible, the Protocol Throttling Formula multiplies BaseThroughput
by the total ParticipationRate
of the protocol to reflect any changes in demand for Relays, then the DAO will use the StabilityAdjustment
in the short-term to correct deviations from the $USDPerRelay
Target that are most likely attributed to short-term changes inherent in the random walk of the cryptocurrency/FOREX markets. If the StabilityAdjustment persists above/below zero without resetting, we can attribute the deviation from the $USDPerRelay
Target to a more permanent change in POKT’s market value, at which point the DAO will update BaseRelaysPerPOKT
and reset StabilityAdjustment
to zero.BaseRelaysPerPOKT
will be updated at the discretion of the DAO.