Pocket Network implements Web3's first programmable deflation

The foundation for decentralized infrastructure protocol Pocket Network (POKT) announced it has implemented the first programmable deflation in a Web3 protocol, activating its Shannon v1.31 network upgrade and deflation mechanism (PIP-41). The protocol is now operating at a 2.5% deflation rate, a structure where 2.5% fewer POKT tokens are issued than are burned in every transaction. Chris “Jinx” Jenkins, Managing Director of the Pocket Network Foundation, said the deflationary structure is a permanent economic lever built into the protocol, rather than a one-time burn or manual intervention. He added that governance can adjust the deflation rate per session without modifying the code. Additionally, the Pocket Network Foundation has entered into a strategic partnership with AnChain.AI, an AI-based blockchain compliance firm. To demonstrate the real-world applicability of compliance technology, the two will host a "Compliance Unlocked" hackathon. The event is scheduled to run for four weeks in the first quarter of this year and will feature a total prize pool of 2,000 USDC.