Discover the Economic Incentives of PocketNet: Beta Test Starts January 3rd

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Since Pocketnet lacks any corporate entity that needs to earn a profit, all of the value created is shared with two broad sets of ecosystem participants. They are creators of content, operators of nodes as well as developers working on the project.

Creators of content are pseudonymous users identified by their public keys and information they choose to reveal about themselves.

Nodes are responsible for a wide variety of services in the ecosystem (blockchain, supporting front end applications to share data, defense against Sybil attacks). These services go beyond a typical cryptocurrency node. Nodes are required to perform those services to be rewarded.
Pocketnet blockchain contains a native token called Pocketcoin. Just as in any decentralized crypto system, there are two ways that tokens are naturally obtained by ecosystem participants. One is emission and another is transaction fees.

Fees

Many transactions such as share content, upvote, and subscriptions are free (but are limited in number or require a balance to prevent Sybil attacks, see below). Some transactions such as promoting content come with a mandatory fee. All transaction fees are split between node operators and content creators.

Emission

Pocketcoin emission is highly dependent on the usage of the platform. The key value proposition for Pocketcoin is not based purely on scarcity and lack of arbitrary emission, it is also based on its use as payment mechanism for advertising to Pocketnet users. We need to make sure that Pocketcoin value is relatively stable and it is not hoarded, because that would slow down payments for advertising. Therefore long-term emission will be based on the number of active users as measured by unique users posting and interacting with content on the blockchain. This will ensure that users and advertisers are not priced out of using the system as it grows. Emission of coins will be split in the following way:

a. 5% goes to node operators through coinbase transactions when generating a new block in the blockchain. In addition, nodes will collect all transaction fees for Pocketcoin token transactions. These will include any transfers of Pocketcoin such as advertising or purchases in the Crypto Store.

b. 5% goes to content creators. This occurs through additional coinbase transactions in the block where likelihood of winning such a reward is proportional to the number of upvotes received by the content creator over a certain period. Note, that this is not all of the creator compensation. In fact, over time it is expected that advertising will take over as the main driver of creator funding through the self-serve Direct Marketplace for ads.

c. 5% goes to developers working on the projects into Developer Fund transactions. Projects will be listed publically and nodes will vote for them on the blockchain, in the transaction that funds a particular project. More than 50% of nodes will have to agree to fund a certain project. Initially, all or most of those funds will go the Pocketnet Core team, who developed the whole project on a volunteer basis. Eventually, it is expected that many more developers will join and Developer Fund will enable Pocketnet to stay on top in the competitive platform game. Developer fund can also be used for marketing projects.

Read PocketNet: A Truly Decentralized Open Sourced Content Discovery & Social Platform Based on Blockchain