Data Payments: Customers utilizing Pollen will be billed primarily in USD, and will be able to utilize $PCN to pay for a portion of each bill (e.g., up to 25%) at a rate of $0.10 per $PCN.
USD payments will be distributed to Flower owners based on the traffic relayed by each Flower.
Payments on plans billed by GB will be a pass-through to Flower owners at a rate of 80% of the rate paid by the subscriber, less SAS fees (up to $15 / month for Class B Flowers).
Payments on monthly fixed rate plans will be allocated on a pro rata basis after 1) 20% of the pool of monthly subscriber fees is allocated to Opco to cover the costs of running the network, and 2) roaming fees are paid to Pollen’s roaming partners. SAS fees will also be deducted from each Flower’s payment.
All USD payments will be subject to all applicable federal, state, and local laws and regulations.
Pollen Opco may change the fiat distribution allocations to reflect actual economics as the network and paid data grow.
Incentive Rewards: The purpose of Incentive Rewards 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 2.1 million per week to Network Providers, Validators, and End Users to reflect their respective contributions to the network.
Incentive Rewards will be made according to the number of $PCN Incentive Credits (“PICs”) earned each week.
- Earns 7 PIC for every week it is connected to the network for at least 22 hours / day (following launch of uptime requirements)
- Earns 70 PICs for every unique Hex validation per week, subject to a maximum number of weekly validations per unique Bumblebee, which will vary based upon Flower type (e.g., a Camellia Flower is capped at seven Hex validations per day)
- For every additional Bumblebee connection from a Hex that has already been validated in a given week, Flowers will earn 14 PICs (instead of 140)
- Also earns 1 PICs for the first Hummingbird or Honeybee attachment. Following an initial attachment, from a Hummingbird or Honeybee, earns 1 PIC for every additional unique Honeybee connection per week (no PICs for additional Hummingbird connections)
- 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 14 PICs for every unique Bumblebee-Flower-Hex validation per week, subject to a maximum number of weekly 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 Camellia in a maximum of seven different Hexes in any given week)
- 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 7 PIC for every unique Flower connection per week. Honeybee users utilizing the Honeybee app also Drop Pollen in the same manner as Bumblebees.
Hummingbirds: Earn 7 PIC for every week connection to the Pollen network.
The payouts for each week will be distributed according to each participant’s weekly PIC earnings relative to the network’s overall weekly PIC earnings:
For example, if a given Flower earns 200 PICs in a given week, 100,000 total PICs were earned across the network, and 2.1 million PCN were being paid as the total Incentive Payment for that week, the Flower owner would receive 4,200 PCN. In this same scenario any Hummingbird that connected once to Pollen that week would receive 21 PCN.
In order to provide an incentive to be an early participant in the network, the number of PCN paid out in weekly Incentive Rewards will halve at two milestones:
- First Halving (to 1,050,000 PCN per week): 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 525,000 PCN per week): 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 Reward distribution, all remaining PCN will be paid out in the Incentive Rewards for that week.
Pollen Drops: 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.
Flower-Bumblebee Weekly Validation Limits: In order to help prevent abuses of Incentive Rewards, the number of weekly unique Flower-Hex-Validator combinations that can earn PICs for Flower owners and Validators will be capped by Flower type according to the following schedule, defined in Level 9 Hexes:
- Moso Bonzai: 6 Hexes
- Dandelion: 7 Hexes
- Camellia: 7 Hexes
- Elderflower: 10 Hexes
- Moso Flower: 12 Hexes
- Sunflower: 16 Hexes
- Buttercup: 20 Hexes
- Moonflower: 30 Hexes
- Acacia: 40 Hexes
For example, if Bumblebee 1 connects to Dandelion Flower 1 in seven different Hexes in any given week, it will receive 7 PICs for those connections, and Dandelion Flower 1 will receive 70 PICs. Any additional connections that week 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, and new Flower models will have their own limits based upon their technical specifications.
In addition to the incentives described above, there are several additional rewards mechanisms designed to further incentivize the development of a high quality, dense coverage network.
Bouquet Boosts: Bouquet Boosts will be additional $PCN rewards to incentivize building contiguous, dense Flower coverage. Rewards will be given for Bird and Bee connections that are successfully handed-off between Flowers. The larger the “Bouquet” of Flowers that provide contiguous coverage via successful hand-offs, the greater the Bouquet Boost rewards.
Geographic Boosts: Hexes may be given “boosts” that result in a multiplier being applied to all $PCN rewards in the Hex. One potential use case for Geographic Boosts is strategically encouraging network development in a specific geographic area.
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 may implement Top Pollinator rewards - for example, Bumblebees that log the most unique weekly Flower validations in each Level 6 Hex will receive a 2x multiplier on all $PCN earned during the next week.
Loot Boxes: In addition to Pollen Drops, Loot Boxes may be 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.
Hex Quality of Service Boost: If a Hex provides contiguous intra-Hex coverage without any dropped calls and / or provides a minimum signal strength throughout the Hex, then a rewards boost may be applied.
PollenCoin is not expected to have any cash value.
The permanently fixed one billion PollenCoin supply will be initially allocated as follows.
500 million - Pollen Incentive Pool: Earmarked for Incentive Payments.
200 million - Sponsor Pool: Subject to a three-year vesting / lockup schedule with a one year cliff (i.e., 1/3rd will vest on the one year anniversary of granting, with 1/12 of the initial balance vesting quarterly thereafter). The Sponsor Pool remains unallocated as of the date of this White Paper.
150 million - Investor Pool: Earmarked for outside investment in the network and subject to the same vesting / lockup schedule as the Sponsor Pool. The first token unlock from the Investor Pool will occur in April 2024.
150 million - Ecosystem Fund: Earmarked for payment to teams / partners providing critical services to the network (e.g., software development, hardware development or marketing). May be subject to vesting schedules that differ from the Sponsor and Investor Pools.