Phala, the AI-Driven Polkadot Project, Votes for Full Transition to Ethereum Layer 2
Phala, an AI-focused parachain on Polkadot, plans to fully transition to Ethereum Layer 2 for enhanced scalability and security following community approval.
Phala, an AI-centered project under the Polkadot umbrella, is on the brink of fully moving to an Ethereum Layer 2. This decision follows a supportive community vote on a proposal that aims to enhance its computational capabilities for enterprise clients.
“Proposal Passed: Phala is Migrating to Ethereum L2!” a post from Phala X indicated. This signifies a new phase for the project as it aims for “greater scalability and enterprise-grade security.”
The post also mentioned that holders of the Phala (PHA) token will be rewarded with a new ERC-20 version at a 1:1 ratio. The migration process is planned to commence before November 20, allowing for continued staking, rewards, and governance on the new Layer 2.
Phala announces key changes to its community. Source: Phala
Phala’s transition isn’t without prior groundwork; the project launched a functional Ethereum Layer 2 back in January. As detailed in the proposal, the strategy is to concentrate efforts exclusively on Ethereum to maximize future potential.
Phala is recognized as a decentralized cloud computing network that aims to offer private, secure, and scalable computing for AI-integrated Web3 applications. It was among the inaugural projects to secure a parachain slot in the initial auctions held by Polkadot in late 2021.
The proposal that led to this migration suggestion was put forth on September 27, with the Phala Network’s ecosystem success leader, known as “doylegxd,” advocating for the consolidation of staking, governance, and confidential computation in a more robust Ethereum-aligned ecosystem.
Why Transition from Polkadot?
Phala stands out as one of the few projects that has decided to fully transition from Polkadot to Ethereum. Other initiatives, like Astar and the KILT Protocol, have opted for a multi-chain strategy, amplifying their integration with Ethereum without entirely severing ties with Polkadot.
Phala’s proposal highlights the need to harness specialized technology to foster its continued growth.
As of now, the PHALA token ranks as the 11th largest AI-related crypto asset, boasting a market capitalization of $80.6 million, placing it among the top 50 largest AI tokens, as reported by CoinGecko.
