Cryptoeconomics¶
PKT blockchain is based on the Bitcoin codebase and implements two fundamental changes:
Replacing SHA256 with the PacketCrypt proof of work. Adding a Network Steward that receives 20% of every coinbase payout to provide grants that meets its funding criteria. There are a total of 6 billion PKT, which will be mined over 63 years. Instead of an abrupt halving event every 4 years, like with Bitcoin, PKT uses a steady decay called a decimation, which is a 10% reduction in the block rewards every 100 days.
Payout of PKT vs. BTC as percent of total coins Payout of PKT vs. BTC as percent of total coins
PKT is designed around fast cheap transacting in small denominations. This is why there will be a total of 6 billion PKT mined compared to 21 million for Bitcoin. Furthermore, each PKT is subdividable into 1,073,741,824 units (2 to the 30th power) whereas there are only 100 million satoshis per Bitcoin. When the Bitcoin price reached almost $62,000 in October 2021, the price of a satoshi was 0.06 cents. This cost per satoshi is impractical for microtransactions, even with nearly free transacting over the Lightning Network.
PKT Cash provides an economic incentive for people to connect bandwidth to the PKT Network. The Network Steward is designed to ensure funding is available to build-out an expansive, decentralized internet infrastructure with open-source technology.