Phala’s Polkadot Slot Auction Strategy
The #14 referendum for the Phala crowdloan strategy passed Khala democracy governance at block height #957600. This is a simple, fair, and long-term benefit plan for those who are willing to contribute to Phala network.
Details are below, let’s fire up with Phala!
The Phala Slot Auction
Basic rules
- Phala Network decides to join the crowdloan to bid for a slot between #6 to #11.
- Auction cap: 8 mln DOT.
- The total reward budget is 10% of PHA’s total supply (100,000,000 PHA). Part of the PHA reward will come from the future on-chain treasury, guaranteed by the Secure Mining rate in the tokenomic paper.
- Basic reward: If Phala wins, every DOT that supports Phala in the Polkadot slot auction will be entitled to 12 PHA as rewards (DOT: PHA= 1:12).
- The ONLY extra reward is Old Gangster Bonus. Contributors from the previous Khala Kusama auction will have a 5% extra reward, on top of the basic rewards. So will the ones who have over 300 PHA on Khala address before block height #902400.
Based on the snapshot by Khala blockweight #902400 , every Khala address with more than 300 PHA balance will also be in the old gangster list. If you use this address (each Khala address have a Polkadot address) to contribute to Polakdot crowdloan, you can win an OG bonus as well.
Click and check if you're in the OG bonus list👇https://docs.google.com/spreadsheets/d/1leyeoR7duZdheXUZZrmdQWqSbrFFV-y3/edit?usp=sharing&ouid=105123812481579620750&rtpof=true&sd=true
Phala Rewards Vesting
When Phala wins a slot and runs as parachain successfully, 15% of the total rewards (including basic and extra rewards) will be vested to contributors’ addresses immediately. The remaining 85% will be vested weekly over 96 weeks.
Channels
You can join the auction via the following decentralized tools:
- Polkadot.js
- Parallel Crowdloans. You can choose to get liquid cDOT for each DOT contribution, or directly contribute to Polkadot pallet via your address.
- Equilibrium
- ……
Also, you can contribute DOT for Phala through centralized organizations (e.g. exchanges).
Other platforms are still under review
Something You May Concern
Budget strategy
10% of PHA supply is the budget for this round of Polkadot slot auction.
In Phala tokenomics breakdown, we have reserved a total of 6.9% from Phala token supply for Polkadot and Kusama slot auctions. To secure a Kusama parachain slot. We have already used 2.5%, leaving 4.4% for the Polkadot slot auction.
So where does the rest 5.6% of the total supply come from?
The answer is the future Phala on-chain treasury.
Because in Phala tokenomic paper, 70% of total supply is mint out and there is a 20% of the mining tax. So we can get at least 70 mln PHA for slot auction:
We also need enough budget to grow Phala’s ecosystem and 5.6% from treasury will be enough for it.
In total, 5.6% + 4.4% make 10% and that is the total amount allocated to reward crowdloan contributors.
Since part of the budget is coming from mining treasury, the rewards cannot be sent to accounts immediately after on-boarding. However, that is not a problem—— Because paying out the rewards gradually works perfectly fine together with the vesting schedule, which means, some parts of the rewards are sent out gradually per block.
Strategy if Phala loses
In the case that Phala doesn’t win a slot between #6 — #11, your contribution for DOT will be returned to your addresses. And Phala community will choose from the following strategy:
- Exit from 3rd batch of slot auction, but keep an eye on it to decide if we will rejoin the bidding at a better time with a smaller budget.
- Upgrade the Khala network to the economics of Phala. This will be a major update of the tokenomic parameters. For example, the mining parameter will become the Phala version, and we will also change the names on polkadot.js, explorers, etc. Note that this is subject to governance and it is up to the token holders to decide the outcome.
- All contributors to Phala crowdloan, even though we do not win, can get on the whitelist for Phala World 1st generation NFT sales. Phala World is a metaverse for the Phala community on top of Bit.Country, all players will use RMRK NFT to build and play around with PVE & PVP mode in the future. We are planning to launch the NFT sale and airdrop in Jan-Feb, 2022.
At the End
We want to give the community a simple and clear plan and use as much as the bonus budget possible to reward all community members. If we win, we win; if we lose, we also win.
About Phala
Phala Network tackles the issue of trust in the computation cloud.
This blockchain is a trustless computation platform that enables massive cloud processing without sacrificing data confidentiality. Built around TEE-based privacy technology already embedded into modern processors, Phala Network’s distributed computing cloud is versatile and confidential. By separating the consensus mechanism from computation, Phala ensures processing power is highly scalable but not wasteful. Together, this creates the infrastructure for a powerful, secure, and scalable trustless computing cloud.
As a member parachain of the Polkadot cross-chain ecosystem, Phala will be able to provide computing power to other blockchain applications while protecting the data layer, enabling possibilities like privacy-protected DeFi trading positions and transaction history, co-computing DID confidential data, developing light-node cross-chain bridges, and more.
On-chain services currently being developed on Phala Network include Web3 Analytics: high-performance smart contracts from Phala to enable highly concurrent mass data analytics with privacy, paving the way for an alternative to Google Analytics that inherently respects individual confidentiality.
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