Polkadot parachain Phala is ready to turn out to be an Ethereum layer 2 after the neighborhood voted in favor of a current proposal geared toward ramping computation choices to enterprise shopper.
“Proposal Handed: Phala is Migrating to Ethereum L2!” a Phala X publish from Wednesday reads, including that it marks the subsequent chapter for the undertaking because it pushes for “better scalability and enterprise-grade safety.”
The publish provides that Phala (PHA) tokenholders will obtain the brand new ERC-20 variant at a 1:1 ratio, the “migration” will begin earlier than Nov. 20, and that “staking, rewards, and governance” will proceed seamlessly on the brand new layer 2 (L2).
This isn’t an abrupt transfer by Phala, because it already has a “stay and purposeful” Ethereum L2 that was launched in January. Because the proposal explains, the undertaking goals to totally migrate and focus solely on Ethereum to maximise potential upside.
Phala is a decentralized cloud computing community that’s designed to offer non-public, safe and scalable computation for AI-integrated Web3 functions. It was one of many first tasks to safe a parachain slot as a part of the auctions held by Polkadot in late 2021.
The proposal was initially submitted on Sept. 27, with the chief of Phala Community ecosystem success “doylegxd,” recommending the transfer to consolidate staking, governance and confidential compute in a “stronger” Ethereum Digital Machine-aligned ecosystem.
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The proposal additionally argued that renewing the parachain slot on Polkadot would lock the undertaking into “infrastructure with restricted scalability” that might require vital assets to keep up. Whereas working in Ethereum would additionally allow it to make the most of next-gen computation tech.
“L2 affords decrease operational overhead and direct integration with Ethereum liquidity and tooling. Additionally it is the pure house for deploying TDX and GPU-based confidential compute workloads, the place we already see early-stage business traction,” the proposal reads.
Why migrate from Polkadot?
Phala seems to be one of many few which have determined to fully transfer from Polkadot to Ethereum.
Different tasks, similar to Astar and the KILT Protocol, opted to develop their integration to Ethereum in a multichain strategy as a substitute of abandoning Polkadot.
Phala’s proposal suggests the transfer was geared toward capitalizing very area of interest tech that it must spur additional development.
The PHALA token is the eleventh largest AI-agent-related crypto-asset by market capitalization at $80.6 million and is among the many high 50 largest AI tokens by market cap, in accordance with knowledge from CoinGecko.
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