FAQ
What is SafePOKT?
SafePOKT is a blockchain protocol that enables users to invest in POKT and Pocket Network Nodes indirectly through the Fantom Network, eliminating all the limitations and allowing investments of any size from any ERC-20 (Metamask, WalletConnect, CoinBase) wallet and Fantom blockchain.
How much can I earn with SafePOKT?
Rewards are variable based on Pocket Network relays and node performance. For a better understanding of relays, nodes and rewards, visit this page.
Within SafePOKT you will always earn one of the best APYs that Pocket Network offers because we use the best performance providers. Currently, the gross daily rewards for each 15K POKT stake are around 5-10 POKT in profit, which can be converted to USDC based on the POKT price value.
How does SafePOKT generate revenue?
The SafePOKT stakes all POKT from holders to set up nodes that serve client relays, which in return generate rewards in POKT.
Are SafePOKT transactions transparent?
Yes, all our transactions are transparent and can be seen on the blockchain. You can visit the Contracts page to access relevant links to block explorer websites.
The contract source code is verified on the blockchain and published to the organization GitHub, so everyone can take a look at the contract's implementation.
What are SafePOKT Shares?
Shares are the investment unit that holders own and are registered in the contract's state (shares are not a token). A protocol share is pegged to a certain amount of POKT, mapped by the Pokt Per Share (PPS) value.
There is no fixed number of shares within the protocol. Shares are only "created" when users purchase them (or restake rewards) and "destroyed" upon selling. In other words, the creation of new shares does not lower the value of the existing ones.
The protocol smart contract ensures that no shares can be created without any real investment associated. The holder is the only one with full control of their shares.
How can I invest in SafePOKT?
There are two ways in which a user can purchase Shares:
Invest from Ethereum network using wPOKT
Get wPOKT on Ethereum.
Connect your wallet to SafePOKT website (Metamask, WalletConnect or CoinBase).
Switch your wallet network to Ethereum.
[Only for the first time] Click "Approve" button on Buy Shares section in order to allow wPOKT to be bridged by wPOKT contract.
Introduce the amount of Shares to be purchased and click on "Buy Shares".
Shares will be automatically displayed once wPOKT bridge to Pocket Network is confirmed and the contract has verified the transaction (it can take a few hours).
Finally, get 1 or 2 FTM on Fantom to manage your investment.
Invest from Fantom network using USDC
Get USDC on Fantom (note that the USDC used by SafePOKT contract is the one operated by Stargate: 0x28a92dde19d9989f39a49905d7c9c2fac7799bdf).
Connect your wallet to SafePOKT website (Metamask, WalletConnect or CoinBase).
Switch your wallet network to Fantom.
[Only for the first time] Click "Approve" button on Buy Shares section in order to allow USDC to be transferred to SafePOKT contract.
Introduce the amount of Shares to be purchased and click on "Buy Shares".
Finally, get 1 or 2 FTM on Fantom to manage your investment.
I bought Shares, now what?
Immediately after shares are purchased, the corresponding POKT is staked in SafePOKT nodes, which will start generating revenue.
After each epoch (monthly), POKT revenue generated by nodes is distributed among holders. Note that new holders will start generating rewards when a new epoch starts to ensure fairness to other holders.
Check the holder guide to obtain a detailed explanation of all available holder actions and how to manage your investments.
Don’t miss any protocol update by joining our Discord, where protocol announcements and reward distributions statistics are published.
How are holder rewards calculated? How frequently are they distributed?
Rewards are distributed at the end of every epoch, which usually lasts around one month.
Each holder epoch rewards in POKT will be a percentage of the total epoch rewards (generated by all SafePOKT nodes) according to the holder's share representation among all protocol shares.
This can also be expressed by:
HolderPOKT = NodeRewards * (HolderShares / TotalProtocolShares)
How are USDC rewards calculated?
Holder POKT rewards can either be claimed as USDC on Fantom every epoch or accumulated on the Pocket network.
Each holder can select the percentage of epoch rewards to be converted to USDC according to their Claim Rate (see detailed explanation of Claim Rate in the holder guide).
Moreover, the accumulated POKT rewards from past epochs can be either restaked into more shares or claimed as USDC by creating a Sweep Order, which enables the holder to take advantage of POKT price action. The POKT is converted to USDC at the end of the epoch and becomes available as claimable rewards.
USDC epoch rewards can also be expressed by:
HolderUSDC = (HolderPOKT * HolderClaimRate) + (HolderPOKTSweep * POKTPrice)
Claimable USDC rewards can be accumulated over several epochs.
Are my rewards affected by POKT price?
Yes and no.
Rewards claimed as USDC will be affected by POKT price at the end of each epoch.
On the other hand, holders can choose what percentage of their rewards they want to claim in USDC (after each epoch) or accumulate them as POKT in the Pocket Network. Accumulated rewards can be either swept to receive them as USDC by the end of any epoch or restaked into the protocol as more shares.
Are there any fees associated with SafePOKT?
The SafePOKT protocol doesn't charge any fees from share purchases or share sells.
A 10% fee is taken from node rewards for project maintenance and node infrastructure cost.
Can I sell my shares?
Yes, shares can be sold.
In the selling process, the holder will receive wPOKT on Ethereum Network computed as the product of the shares sold and the Pokt Per Share (PPS) value. This can be expressed as:
Received wPOKT = SoldShares * PPS
Nevertheless, the Pocket Network imposes an unstake cooldown period of 21 days. Therefore, once a selling process is started, it will take around 4 weeks until the wPOKT is received by the holder.
Is SafePOKT affiliated with Pocket Network?
Currently, SafePOKT has no direct affiliation with the Pocket Network team.
SafePOKT is a protocol that invests in POKT. However, SafePOKT is a well-known third-party staking service recognized by the official Pocket Network forum.
Why did you start SafePOKT?
We started SafePOKT because we believe in the importance of decentralizing the blockchain’s infrastructure layer to reduce dependency on centralized companies like Infura, which is vital for the blockchain technology to perform as it's supposed to. Moreover, investing in Pocket Network nodes presents quite a few limitations for most investors.
Our main goal was to develop a solution to easily invest in Pocket Network nodes through a user-friendly interface connected to popular wallets and blockchains (such as ERC-20).
Which node provider does the protocol use?
As a fund manager project we will always look for the best performing node provider in order to maximize generated rewards.
Regardless of the provider used, we will always stake into non-custodial nodes, meaning that the provider does not have access to the staked POKT. This grants reliable access to the protocol-owned POKT, which translates to an extra layer of security for the holder.
Currently, SafePOKT is using the cryptonode.tools domain to deploy non-custodial nodes.
Why is SafePOKT deployed on Fantom?
Fantom is a well-established and easy-to-access blockchain. One of the key aspects that makes Fantom appealing is the low transaction fee and the high transaction throughput it offers compared to other blockchains such as Ethereum.
The SafePOKT protocol is managed by transactions that the operator sends, so minimizing transaction costs is vital to guarantee maximum holder rewards.
My question is not answered here, what can I do?
You can join our Discord, and we will kindly answer your questions there.
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