The purpose of Incentive Payments is to provide an incentive for early adopters to build, validate, and begin utilizing the network.
The 500 million Incentive PCN will be distributed in regular base installments of 300,000 per day (initially, prior to the halving events) to Flower owners, Validators, and End Users to reflect their respective contributions to the network.
Incentive Payments will be made according to the number of PCN Incentive Credits (“PICs”) earned each day (days begin at 00:00 UTC).
- Earns 1 PIC for every day it is connected to the network for at least 22 hours
- Earn 10 PICs for every unique Hex validation per day, subject to a maximum number of daily validations per unique Bumblebee, which will vary based upon Flower type (e.g., an Elderflower is capped at ten Hex validations per day)
- For every additional Bumblebee connection from a Hex that has already been validated in a given day, will earn 2 PICs (instead of 10), also subject to the same Hex caps
- Earns 1 PIC for every unique Honeybee connection per day
- Flowers also earn Pollen Drops, which are PICs that are placed / accumulate in each Hex to incentivize Flower deployment in Hexes where coverage demand exists. Accumulated Pollen Drops will be earned by the first Flower to be deployed in a Hex and remain active for 30 consecutive days. Daily Pollen Drops (e.g., from Bumblebees) in covered Hexes will be earned by the Flower(s) covering the Hex
- Earn 2 PICs for every unique Bumblebee-Flower-Hex validation per day, subject to a maximum number of daily validations per unique Flower, which will vary based upon Flower type (e.g., a single Bumblebee will only receive credit for connecting to the same Elderflower in a maximum of ten different Hexes in any given day)
- Bumblebees also “Drop Pollen” in the form of 0.1 PICs in the top 100 Hexes (determined by time spent in each Hex each day) visited each day. If a Pollen Drop occurs in an uncovered Hex, the Bumblebee will earn 0.1 PIC, and the Hex will receive 0.1 PIC, which will accumulate, remain “live” in the Hex for 180 days, and will be earned by the first Flower to cover the Hex and remain active for 30 consecutive days. If the Pollen Drop occurs in a Hex that is covered by a Flower(s), the 0.1 PIC will be rewarded to the Flower(s) covering the Hex
Honeybees: Earn 1 PIC for each day it connects to the network. Also earns 1 PIC for every unique Flower connection per day. Honeybee users utilizing the Honeybee app also Drop Pollen in the same manner as Bumblebees.
Hummingbirds: Earn 1 PIC for every daily connection to the Pollen Network
The payouts for each day will be distributed according to each participant’s daily PIC earnings relative to the network’s overall daily PIC earnings:
For example, if a given Flower earns 200 PICs in a given day, 100,000 total PICs were earned across the network, and 300,000 PCN were being paid as the total Incentive Payment for that day, the Flower owner would receive 600 PCN. In this same scenario any Hummingbird who connected to Pollen that day would receive 3 PCN.
In order to provide an incentive to be an early participant in the network, the number of PCN paid out in daily Incentive Payments will halve at two milestones:
- First Halving (to 150,000 PCN per day): Occurs when the Incentive Bank is ⅓ depleted (i.e., drops below a balance of 333,333,333 PCN - expected to occur in August 2023)
- Second Halving (to 75,000 PCN per day): Occurs when the Incentive Bank is ⅔ depleted (i.e., drops below a balance of 166,666,667 PCN - expected to occur in September 2026)
If any PCN remains in the Incentive Bank on the 10-year anniversary of the first Incentive Payment (February 2032), all remaining PCN will be paid out in the Incentive Payments for that date.
To incentivize early adopters to utilize the network, the first 100,000 Hummingbird owners to purchase a Pollen SIM will also receive 10 Data Credits, which will be purchased from the Foundation using PCN from the Incentive Bank.
Pollen Drops are generated by different types of users, such as Bumblebees and Honeybees, as described above. The intent of Pollen Drops is to incentivize Flower deployments in Hexes where Pollen users frequently visit but don’t yet have coverage. The first Flower to provide coverage in a given Hex for 30 consecutive days will be rewarded with the PCN Drop. If the original Flower interrupts coverage during the 30 days, the clock will reset. If a second Flower achieves 30 days of consecutive coverage before the original Flower is able to do so, the second Flower’s owner will earn the PCN Drop. Once a Hex is covered, incremental Pollen Drops are earned by the Flower(s) covering the Hex.
Beginning in Phase II of the network’s deployment, on a daily basis, PCN will be paid to Flower owners from the Data Payments Bank. The total amount of PCN paid out each day will be calculated according to the following formula:
For example, if the end of day PCN balance in the Data Payments Bank was 15,000,000 PCN, the beginning total Data Credit balance was 5,000,000 with 1,000,000 purchased during the day and 500,000 DCs / GBs consumed during the day, the total amount of PCN paid out in Data Payments for the day would be:
Data Payments are allocated pro rata according to the amount of data hauled by each Flower relative to the collective amount of data hauled by all Flowers on the network.
To continue the illustrative example, if the total PCN being paid out in daily Data Payments is 1,250,000; Flower 1 hauled 100 GB of data, and the entire network hauled 500,000 GB of data, Flower 1 would receive 250 PCN.
CBRS rules require every Flower to be connected to a Spectrum Access System (“SAS”) to ensure CBRS networks are not interfering with other priority users of the spectrum, such as US Navy radar systems. SAS services are provided by multiple companies (e.g., Federated Wireless, CommScope) that have been authorized by the FCC, which are allowed to charge a “reasonable fee” (generally ranging from a few dollars to as much as ~$15 per month) depending upon Flower type (e.g., larger, higher power Flowers that are classified as “Class B” devices incur higher monthly SAS charges).
For the first twelve months following the launch of Pollen, Pollen Opco will cover all SAS costs for all Flowers.
After the first twelve months, beginning on the first of each month, PCN will be withheld in the Data Payments Bank from Data Payments to each Flower to cover its respective SAS cost. For example, if a Flower’s monthly SAS cost is $5 and the price of PCN is $0.50, then the first 10 PCN earned in a new month will be retained by the Foundation to cover SAS fees, and every additional PCN earned that month will be paid to the Flower owner.
If an individual Flower’s monthly earnings are ever insufficient to cover its SAS cost, its SAS payment will be borrowed from the Data Payments Bank, subject to limitations, to be paid back from future PCN earnings or direct PCN payments made to the Foundation from the Flower owner.
Beginning in Phase II when data consumption becomes paid, daily Network Maintenance Payments will be paid pursuant to a rewards structure that mirrors the Incentive Payment rewards in effect at the time. Network Maintenance Payments are intended to replicate the Incentive Payment rewards system on a sustainable, permanent basis once data becomes paid.
Of every PCN spent purchasing Data Credits, 80% will be deposited to the Data Bank and 10% will be deposited to the Network Maintenance Bank. The remaining 10% will be allocated to the Mobile Core Administrator, which will be compensation for services provided and funding to pay for third party service providers other than SAS costs (e.g., Mobile Core server costs, IEPS provider costs, etc.)
The initial Mobile Core Administrator will be Pollen Opco. The eDAO is expected to become the Mobile Core Administrator in Phase III, though the community / eDAO may elect to have multiple parties fulfill the various roles played by the Mobile Core Administrator.
Beginning in Phase II of the network’s deployment, End Users and Validators will be required to purchase Data Credits (“DCs”) in order to transfer data over the Pollen network (1 DC purchases 1 GB of data transfer).
DCs are purchased in PCN from the Pollen Foundation and will be tracked by the Mobile Core Orchestrator.
Flower-Bumblebee Daily Validation LimitsIn order to help prevent abuses of Incentive Payments and Network Maintenance Payments, the number of daily unique Flower-Hex-Validator combinations that can earn PICs / PMCs for Flower owners and Validators will be capped by Flower type according to the following schedule, defined in Level 9 Hexes:
- Dandelion: 5 Hexes
- Camellia: 5 Hexes
- Elderflower: 10 Hexes
- Buttercup: 25 Hexes
- MosoFlower: 12 Hexes
- MosoBonzai: 6 Hexes
For example, if Bumblebee 1 connects to Dandelion Flower 1 in five different Hexes in any given day, it will receive five PICs for those connections, and Dandelion Flower 1 will receive 50 PICs. Any additional connections that day between those two unique devices will not earn any additional PICs for their respective owners.Limits may be changed in the future by Pollen Opco or the eDAO, and new Flower models will have their own limits based upon their technical specifications.
In addition to the incentives embedded in Pollen’s crypto economy, there are several additional rewards mechanisms designed to further incentivize the development of a high quality, dense coverage network.
All Additional Rewards and the wallets they were rewarded to will be publicly posted on the blockchain.
- SIM Data Credits: The first 100,000 SIMs purchased will also include 10 free Data Credits, worth 10 GB of data transfer on the network.
- Geographic Boosts: Hexes may be given “boosts” that result in a multiplier being applied to all PCN earnings in the Hex. One potential use case for Geographic Boosts is strategically encouraging network development in a specific city.For example, if network coverage is strong in San Francisco but weak in Oakland, a 2x Geographic Boost may be applied to all Oakland Hexes for a limited amount of time to incentivize new Flower deployments, Validator coverage verifications, and End User connections.
- Top Pollinator Rewards: Pollen Opco or eventually the eDAO may implement Top Pollinator rewards - for example, Bumblebees that log the most unique daily Flower validations in each Level 6 Hex will receive a 2x multiplier on all PCN earned during the next day.
- Loot Boxes: In addition to Pollen Drops, Loot Boxes are randomly generated and dropped in randomly-selected Hexes. Loot Box rewards can range from 1-1,000 PICs and the first Flower to provide coverage in the given Hex for 30 consecutive days will earn the Loot Box reward.