Thread by @InfiniteAtman

1/ Pocket network @POKTnetwork's recent revenue numbers are staggering and reveal amazing product-market fit. This is without a doubt the best current infrastructure bet in terms of R:R. Here are some numbers:

2/ Quick primer. As a decentralised competitor to the blockchain Infrastructure-as-a-Service provider #IaaS Infura @infura_io, Pocket provides trustless WEB3 relaying services through a network of 1000's of independent full nodes. Here is a thread to get you started:

https://twitter.com/_/status/1386661691325390852

3/ Pockets average daily relays have been in a steady uptrend for month now, but its growth exploded in the last weeks: +580% daily relays since October 18th. In Q2-Q3 daily average relays grew about 50x.

c0d3r.org/NetworkCharts

4/ This is mostly due to to the fact that @harmonyprotocol $ONE started to route 50 - 100m daily tx through Pockets relay network. Their RPC infrastructure couldn’t handle the traffic after a recent spike of interest, so they turned to Pocket for a solution.

5/ Per serviced relay the network mints 0.01 $pokt, of which 89% gets distributed to validators. A total of 1.32m $pokt was earned this way in the last 24h. Thats around 40m of fee revenue per month or a 380% APY denominated in $pokt per node (insert mind belown gif here)

6/ This places Pocket in the top 5 networks in terms of fee revenue, next to the likes of Sushiswap and Compound.

7/Compared to @Filecoin Pocket accrues more then double the fee revenue at a fraction of its marketcap. At the current OTC price 0.75$, $POKT has a market cap of ~525m usd (circulating = fully diluted). Filecoin: 7.7b / 128b

8/ Of course we have to consider that rewards paid out via dilution should not account for fee revenue. However this doesn’t capture pockets complex economic model which charges for relay services by exposing customers to dilution. What does that mean? How does this work?

9/ To use the network, apps have to stake $pokt (without receiving rewards), while 0.01 $pokt is minted per serviced relay and paid out to the Dao (10%) validators (89%) and block producers (1%). This way value gets transferred from users > validators via supply dilution.

10/ Obviously the recent revenue spike accounts for real demand, which will only continue to grow. Many protocols will need to mitigate dependencies on Infura's endpoints which present one of the few centralised bottlenecks in all of blockchain. @harmonyprotocol is proof of that

11/ The TAM is massive, Infura's 2020 yearly review mentioned a record of 2.4b serviced calls for ETH alone, this number most likely continued to grow in 2021. Pocket is currently servicing 150m calls per day across all chains, which is 6.25% compared. blog.infura.io/infura-2020-a-…

12/ At the current rate and price Pocket's issuance will add another 356m usd market cap per year, which might not be sustainable on the long run. I fully expect the dao to cut issueance in the near future. Watch this space.

13/ However Pocket's compelling product market fit has been revealed to anyone paying attention, and I wouldn’t be surprised to soon see its LBP on @CopperLaunch to start at a 5$ token price - and it wouldn't be unwarranted.