| description |
|---|
The BaseThroughput determines the baseline relays an applications receives per POKT staked. |
BaseThroughput is the baseline number of Relays we aim for an Application to get per POKT staked, assuming no external factors influencing POKT. This is calculated as:
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:
This allows the protocol to express decimals in the form of fractional integers, enabling more granularity for the BaseRelaysPerPOKT number.
Due to the oracle problem, it is not possible to automatically adjust BaseRelaysPerPOKT based on the market price of POKT. The DAO will track indicators (such as ParticipationRate as well as the rate of change of new POKT being staked on the demand side), and adjust Pocket’s economic levers, as necessary, to ensure that Relays remain affordable for Applications.
To keep the real $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.
The BaseRelaysPerPOKT will be updated at the discretion of the DAO.\