Phala Network Votes to Transition from Polkadot to Ethereum Layer 2
- The Phala community approved a proposal to migrate to an Ethereum layer 2 solution, enhancing scalability and security.
- Phala (PHA) tokenholders will receive new ERC-20 tokens at a ratio of 1:1, with migration expected to begin before November 20.
- The project aims to consolidate its operations on Ethereum, which it views as a stronger ecosystem for its confidential computing services.
- Phala was one of the first projects to secure a parachain slot on Polkadot during the late-2021 auctions.
- The PHALA token currently has a market capitalization of $80.6 million, ranking it among the top AI-related crypto-assets.
This strategic shift comes as Phala seeks to leverage Ethereum’s advanced technology and liquidity while avoiding limitations posed by Polkadot’s infrastructure. The move is part of a broader trend where some projects are opting for multichain strategies rather than complete migrations.
With this transition, Phala aims to enhance its service offerings in decentralized cloud computing while maintaining seamless staking and governance processes. (Source)
