Pocket Network’s Shannon Upgrade Redefines Data Infrastructure to Enable a $390B Open Economy

Pocket Network has finalized its Shannon network upgrade, representing a major advancement in its journey as a decentralized provider of data infrastructure. This update shifts Pocket from a relay service focused on blockchains to a Cosmos-based, multipurpose coordination platform for open data solutions. The upgrade brings several new features such as open access for participants, compute-unit fees tied to the US dollar, and flexible governance via Token Logic Modules (TLMs). The goal of these updates is to establish a more robust and scalable economic structure for $POKT holders, while expanding the network’s capabilities to diverse open data services like AI inference and Web2 APIs, in addition to blockchain RPCs.

The Shannon upgrade introduces sweeping changes to Pocket Network’s economic design. Departing from the old inflationary approach that disconnected usage from cost, the new model implements a burn-to-use system where apps and gateways spend $POKT to process relays. Each data transaction is measured in compute units (CUs), with one billion CUs valued at $1. The exchange rate between POKT and CUs is automatically calibrated through the Compute Unit to Token Multiplier (CUTTM), maintaining price consistency regardless of demand changes. This transition creates a deflationary dynamic, as increased network activity reduces token supply, better aligning demand with available tokens. Furthermore, high-traffic gateways now benefit from volume-based rebates, further encouraging engagement and supporting long-term network health.

Shannon’s governance is now modular, managed through TLMs, enabling the community to control tokenomics, reward structures, and protocol upgrades without the need for hard forks. Such adaptability lets the network respond swiftly to market shifts and technological progress. Governance functions have also been reinstated, with the DAO managing treasury issuance, fee settings, and incentive configurations. These measures underscore Pocket’s dedication to decentralization and community leadership, ensuring lasting flexibility and strength.

The migration to the

SDK has strengthened the network’s foundational architecture, making possible features like Inter-Blockchain Communication (IBC) and adaptive staking. The updated chain design enables on-chain slashing, modular enhancements, and better interoperability with other Cosmos networks. Since the initial rollout of the new chain in March 2025, the network has surpassed 4,000 validated blocks, with essential tools such as validators, block explorers, and exchange connections coming online. The team is also working towards upcoming IBC integration, which will further increase the token’s use cases within the Cosmos environment.

Pocket Network’s ecosystem is accelerating thanks to strategic alliances. A standout partnership with Kleomedes—a prominent staking platform within Cosmos—has brought Pocket’s decentralized RPC and open data offerings to 14 chains, including Akash, Osmosis, and Elys Network. This collaboration boosts Pocket’s footprint in one of the busiest interchain environments, presenting Cosmos projects with a scalable and censorship-resistant alternative to centralized services. Through this relationship, Kleomedes is now running nodes in Pocket’s network, broadening its appeal to developers and users throughout the Cosmos ecosystem.

With the Shannon upgrade now in place, Pocket Network is set to become a key player in the expanding open data landscape. The move to a Cosmos-based framework, paired with usage-driven economics and adaptable governance, forms a foundation for sustainable expansion and wider use. As forecasts show the open data sector reaching $390 billion this year, Pocket’s deflationary tokenomics and competitive pricing—averaging $2.50 per million relays—make it a formidable option in the infrastructure market. The addition of AI inference, decentralized social data, and other innovative applications further enhances the network’s possibilities, cementing its position as a critical layer for the future of decentralized apps.