Research Summary
The report provides a comprehensive analysis of the POKT Network’s performance in Q4’23, highlighting key metrics such as supply-side revenue, protocol revenue, staking participation, and relay requests. It also discusses upcoming upgrades, strategic focus, and governance proposals.
Key Takeaways
Revenue and Issuance Dynamics
- Supply-side Revenue Surge: Despite an 18% QoQ decrease in POKT issuance, supply-side revenue saw a significant 103% increase, reaching $1.2 million in Q4’23. This was largely attributed to the rise in the POKT-USD price during the quarter.
- Protocol Revenue Decline: Protocol revenue, which includes Gateway fees and transaction fees, experienced a 23% QoQ decline, amounting to $75,000. This aligns with the 45% decrease in serviced relays in Q4’23.
Network Performance and Upcoming Upgrades
- Staking Participation: Staking participation in the POKT Network averaged 53% in Q4’23, showing a 7% decrease from the previous quarter. Service nodes and users (applications/developers) made up approximately 95% of the staked POKT.
- Shannon Upgrade: The anticipated Shannon upgrade in Q2’24 aims to further decentralize the network by enabling permissionless Gateways, which will facilitate demand-side access points for Gateways and application developers.
Relay Requests and Serviced Chains
- Relay Requests: In Q4’23, the POKT Network serviced approximately 58 billion relay requests, averaging about 630 million relays daily. This marked a significant 45% reduction from the previous quarter.
- Serviced Chains: Ethereum and Polygon were the most serviced relay chains in Q4’23, with Ethereum relays decreasing by 27% to 19 billion and Polygon relays dropping by 52% to 13 billion compared to Q3’23.
Actionable Insights
- Monitor the Impact of Shannon Upgrade: The upcoming Shannon upgrade could significantly impact the POKT Network’s decentralization and demand-side access points. Stakeholders should closely monitor the implementation and effects of this upgrade.
- Assess the Influence of POKT-USD Price on Revenue: The significant increase in supply-side revenue despite a decrease in POKT issuance highlights the influence of the POKT-USD price on network earnings. This relationship should be further analyzed for future revenue projections.
- Understand the Implications of Decreased Relay Requests: The 45% reduction in relay requests could have implications for the network’s utility and demand. Stakeholders should investigate the reasons behind this decrease and its potential impact on the network’s performance.
