PNT Node Pool

Updated on April 16, 2021

Pool Specs #

Initiative: Co-own a pNetwork node

Focus: Blockchain interoperability (cross-chain solutions)

Token: pNetwork Token (PNT)

Max Supply: 87,984,177

Website: p.network

Node Network: Yes

Node Purpose: Facilitate token wrapping (Pegging)

Node Requirement: 200,000 PNT staked

Pool Rewards: 0.25% peg-out fees + 42%-21% APY from pNetwork DAO

Pool Reward Share Ratio: 90%

Pool Limit: 200,000 PNT

Pool Network: xDai Chain

Pool xDai Address: 0x758d3c92aE49dDBf0d12A1B2651F580905D8f0Ed

Aragon xDai Address: https://aragon.1hive.org/?#/pntnode.aragonid.eth

Pool Token: Node PNT (nPNT)

nPNT xDai Address: 0x5aDCb57a05BF1bCDc8a40033fa5873e44FB81DAF

Minimum Stake: 100 PNT

Collateral: Non-custodial

Staking Time: Until vote passes to shut down node

Buy-Outs: Yes – based on consensus approval

Operational Overhead: Subsidized By Peerion


Pool Summary #

The Peerion PNT Node Pool is open to the public. The pool is operated by a Decentralized Autonomous Organization (DAO). The DAO enables its members to pool PNT in order to co-own a pNetwork Validator, vote on asset allocation, and collect proportional rewards. By staking any amount of PNT in the pool, a 1:1 Node PNT (nPNT) is received. nPNT gives the holder proportional voting weight and reward split. All pNetwork transaction fees earned via node operations are deposited into the PNT Node Pool Vault.


Pool Security #

Layer 1
The xDai Chain – an EVM compatible, Layer 2, stable coin side-chain, based on the DAI Token, and backed by a decentralized network of validators.

Layer 2
The PNT Node Pool is governed by a DAO which is secured and powered by Aragon Technology. Aragon is a decentralized global governance and arbitration system which acts as a last resort for unresolved disputes. Any unresolved disputes concerning pool activity can be brought to arbitration and reviewed by a randomly selected group of Aragon Guardians.

Layer 3
A Gnosis Multisig Wallet is used with randomly elected pool delegates to co-sign, along with Peerion, in order to prevent any single entity from controlling the underlying collateral. When it comes to any delegation activity, on behalf of a Peerion Pool, for cross-chain transactions, staking, or node operation – it is required for all Gnosis Multisig Wallet signers to use top-of-the-line cold storage signer solutions for all signing requests.


How It Works #

1. When PNT is staked in the PNT Node Pool, a 1:1 nPNT is received, and the staked PNT is added to the Pool Vault.

2. Until the required 200,000 PNT is staked in the PNT Node Pool, the underlying PNT is non-custodial and can be withdrawn at any time.

3. Once 200,000 PNT has been successfully pooled, two elected delegates will be chosen, via a pool vote, to act as co-signers along with Peerion to the Pool’s official Gnosis Multisig Wallet that will manage the PNT.

4. After the three signers are established, a request will be created to withdraw the PNT to the Gnosis Multisig Wallet staking account.

5. The Gnosis Multisig Wallet signers will be responsible for staking the 200,000 PNT in the pNetwork DAO on mainnet.

6. Once the requirement of 200,000 PNT is staked in the pNetwork DAO from the PNT Node Pool, Peerion will spin up a pNetwork Node.

7. A pNetwork Node costs an average of $200 a month to operate. The overhead costs will be subsidized by Peerion.

8. The transaction fees collected from node operations will then be deposited weekly, by the signers of the Gnosis Multisig Wallet, into the PNT Node Pool Vault.


Pool Details #

A. All transactions, stakes, rewards, and votes can be audited on chain.

B. Besides proportional reward redemption, nothing can be removed from the DAO Vault without consensus approval by the DAO.

C. Once 200,000 PNT is reached, the PNT Node Pool shall stop accepting new members. If continued demand for a PNT Node Pool exists, Peerion will deploy a separate pool.

D. On top of the Validator rewards, the PNT that is staked in the pNetwork DAO is subject to receive yield at 42% APY for year 1 and 21% APY for year 2, respectively. The pNetwork DAO rewards are locked for 1 year. Once unlocked, they will be added to the PNT Node Pool Vault. See more on The pNetwork DAO

E. All PNT that has been staked in the PNT Node Pool when the pNetwork Node is deployed, will be locked until a vote passes to shut down the node. This guarantees the 200,000 PNT node requirement is maintained. Do not fear, there is the ability to request a buy-out, which is explained below.

F. It is a 90/10 reward split for the node pools hosted by Peerion. 90% going to all the members who stake and 10% going to Peerion in order to pay the overhead costs (servers, transfers, swaps etc.) and compensate Peerion Affiliates for their time. See more on pNetwork Nodes

G. All members maintain ownership of the full amount of PNT originally staked in the pool. Peerion only receives 10% of the rewards and voting rights.

H. All transaction fees collected by the co-owned node will be converted into PNT on xDai and deposited into the DAO vault. Reward allocation is then decided by the DAO.

These allocations can include:

  • Proportional airdrops
  • Funding another pNetwork node
  • Liquidity initiatives
  • Member buyouts

I. There are plans to develop a cross-chain solution in the near future using pNetwork Portals. That means DAO actions on xDai can dictate actions on mainnet, allowing the DAO, in its entirety, to remain in full control of the underlying collateral for the pNetwork Node. Learn more about pNetwork Portals


Node Rewards #

pNetwork Node Reward Rate: 0.25% (peg-out fee)

Based on the pNetwork ‘Peg-out’ volume of the last 30 days, potential reward earnings can be calculated.

At the time of writing, the current peg-out volume for 30 days is ~$33,000,000 and there are 18 nodes on the network.

To calculate a node’s earnings simply multiply the peg-out volume (x) (found on the pNetwork Node page) by peg-out fee (y) and then divide by the number of nodes (z) to get the node reward amount (n).

The formula to calculate node earnings looks like this: (x * y) / z = n

For example: ($33,000,000 * 0.25%) / 18 = $4,583.33 per node

Now to calculate your specific earnings in the PNT Node Pool, simply find your percentage of the pool and multiply it by (n). To find your exact percentage of the pool divide your nPNT by the total supply.

Based on the numbers above, a 10% stake in the PNT Node Pool, would earn you ~$458 per month.

As an example, 30-day projections, on reward earnings, are made below based on a 10% stake in the PNT Node Pool with scaling volume and active nodes.


30 Day Node Reward Projections Based On A 10% Stake In PNT Node Pool


Peg-out Volume

Active Nodes

Rewards
$50M18~$694
$75M20~$937
$100M22~$1,136
$125M23~$1,358
$150M25~$1,500
$200M30~$1,666
$500M50~$2,500
$1B75~$3,333
$2B100~$5,000
$10B100~$25,000


Member Buy-Outs #

Buy-out requests exist to enable pool members to exit the pool, while also maintaining the required 200,000 PNT stake to keep the pNetwork Node operational.


!!READ FIRST!! – It is important to take all of the following information into consideration before trying to exit the pool:

Remember: All rewards collected through PNT Node Pool activity are kept secure in the Pool’s Vault. Each member has the ability to claim these rewards at any time by burning their nPNT.

IF YOU BURN YOUR nPNT TO CLAIM THESE REWARDS, YOU ARE AT RISK OF LOSING YOUR PORTION OF PNT TOKENS THAT ARE STAKED FOR THE pNETWORK NODE. MAKE SURE TO DO THE FOLLOWING BEFORE BURNING:

  1. IT IS IMPORTANT TO CREATE A SIGNAL REQUEST THROUGH THE VOTING UI FOR A BUY-OUT FROM THE POOL BEFORE YOU BURN.
  2. THE POOL MUST NOT ONLY APPROVE THE BUY-OUT BUT ALSO HAVE ENOUGH IN THE VAULT TO COVER THE REQUESTED BUY-OUT.
  3. ONCE APPROVED, THE BUY-OUT WILL COMMENCE AFTER THE STAKE IS BURNED.

    Existing members are incentivized to allow a buy-out because it then leaves the remaining members with a larger portion of the future PNT node pool rewards.


A buy-out works by the requester starting a signal request that is voted on and approved by the pool. After the request is approved, the requestor must burn their stake to claim their proportional rewards. After the requestor’s stake is burned, a withdrawal request in the amount of the buy-out will be started by a still existing pool member. The pool members can then audit that the buy-out amount and withdrawal address is correct, and approve the withdrawal request. Once approved, the amount will be distributed and the buy-out will be complete.

It is important to remember that if you burn your nPNT without a prior signal and pool approval for a buy-out, there is a chance that your underlying collateral staked for the node could potentially be lost.


Pool Agreement #

There are risks involved when using new technology. There are no guarantees on profitable outcomes and total loss is possible. Make sure you know what you are doing, and it is important to always Do Your Own Research (DYOR)! By using Peerion Pools or any affiliated products, you understand the risks and agree to take full responsibility for any losses that you may incur and waive Peerion and its affiliates of any responsibility for said losses.