This motion will trigger the runtime upgrade for Khala Network Runtime v1252 with the following major updates:

* Fix the sygma problem

For details, please check [the release page](https://github.com/Phala-Network/khala-parachain/releases/tag/v0.1.25-2)


proposal

Khala Runtime Upgrade v1252 - motion #239

inDEX is a cross-chain dex aggregator designed to work on top of Phat Contract. This motion is a call to remove worker 0xf4dbaa37b64f78fa3f4a12132c257b6b3176beaa31fab6d6f15f9387de6fea44 and then whitelist new worker 0x04dba0677fc274ffaccc0fa1030a66b171d1da9226d2bb9d152654e6a746f276 on pallet-index. The worker is derived through Phat Contract, whose private key secured by Secure Enclave

calls

Whitelist inDEX worker for closed test  - motion #238

**Proposal:** OnFinality High Performance Public Infrastructure (Q3 & Q4 2023)

**Proponent:** 42PDjUSugisVhhNQg453fkDwLmg9QMzeWe9huR817xt7c3DW

**Date:** 27th August 2023

**Total Requested PHA:** 237,118.2856 PHA

**Short description:** Ongoing & advanced costs for the running of high performance, scalable, and reliable public infrastructure in Q3 and Q4 of 2023 for Phala and Khala.

**Full Report:** [https://docs.google.com/document/d/1mglyAhgruNXwnNWl3Li6TEoSImgBDXPzTOpB9yW2F8A/edit?usp=sharing](https://docs.google.com/document/d/1mglyAhgruNXwnNWl3Li6TEoSImgBDXPzTOpB9yW2F8A/edit?usp=sharing)

* * * * *

Why are Public RPC Services Needed for Phala
============================================

Setting up blockchain infrastructure is difficult, time consuming, and expensive:

-   It requires a level of server development expertise that many do not have

-   It's costly to run a full node nearly continuously, especially when your dApp's traffic is low and inconsistent. 

-   Running production level infrastructure is especially tricky. You need to autoscale quickly to handle bursty traffic, and you want to provide services in different regions around the world to provide low latency services - all of this is incredibly costly, but comes with significant economies of scale for a provider.

-   DevOps requires constant attention - time that would be better spent elsewhere building.

A shared node API service helps mitigate these barriers of entry to trying accessing a new protocol by reducing all these costs to near zero. We manage all the nodes for our users and distribute them across the world (with intelligent routing) to achieve global scalability from day 1, we monitor each node and ensure that they meet certain service levels, and we have the expertise and scale to handle production workloads and high peak traffic.

In summary, we try to reduce the pain of getting started on Khala and minimise the costs of accessing secure nodes while traffic from your dApp is low. When you grow, you can continue to use our shared API service, or we also [provide access to one click deploy dedicated Khala nodes](https://onfinality.io/dedicated_nodes) to any cloud of your choosing.

Background on our RPC Service
=============================

As Polkadot's largest and most cost efficient infrastructure provider, we provide scalable free public API services for Phala. Since our inception in November 2020 we have a long track record focussing on three key areas; performance/reliability, providing more value from our Ultimate API service, and cost optimisation.

### Performance/Reliability

OnFinality is operationally striving for a minimum of 99.99% reliability, which means less than an hour of downtime each year. We are the only RPC provider to guarantee this with actual financial penalties (see appendix A). We proudly display and share our [90 day uptime statistics](https://status.onfinality.io/) for each network publicly [here](https://status.onfinality.io/uptime/r40wwpclbwzm).

We have invested hugely into a team dedicated to optimising our application gateway and caching layer to ensure that we provide the fastest possible service for our customers. We run clusters in 5 different regions (North Virginia, Frankfurt, Tokyo, Singapore, and Australia) and across 4 different cloud providers (AWS, GCP, Alicloud, and our own dedicated hardware) to ensure that we are fault tolerant to any single region or cloud provider ceasing service.

### Providing more value from our Ultimate API service

For customers that do sign up for API keys, we've been adding more and more features to provide a better experience. [Geolocation insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) provide statistics about where in the world communities are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives.

OnFinality is the only provider with [Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) support, a huge and essential enhancement allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) and Parity's data team to parse and understand XCM transactions.

We've recently added support for 14 more Polkadot parachains as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. With over 100 supported networks, OnFinality is now the largest RPC provider worldwide (in terms of networks supported), and our ongoing expansion helps to bring more and more developers  into the Polkadot ecosystem.

### Cost Optimisation

OnFinality is very conscious about providing a strong level of support for Polkadot/Kusama at an extremely competitive price. In Q2 as we had the lowest cost per million responses across all of the major RPC providers that lodged a proposal to the Polkadot treasury ([source](https://docs.google.com/spreadsheets/d/1Utw2HfS7I5Gpyhrl9ejuj0CrQ4AcChGFteXdw0a8tro/edit#gid=0)).

Cost saving measurement has been a significant focus on behalf of our customers, with advanced rate limiting controls implemented. We can, for example, rate limit each client on a burst and sustained basis and based on the request methods that they are calling (e.g. each state_traceBlock request is rate limited 45x more than chain_getBlock), [read more about these advanced rate limiting tools that we've developed here](https://documentation.onfinality.io/support/public-rate-limits).

We continue to provide generous public API endpoints for over 40 different networks for common-good applications, while restricting access to high volume users that abuse the free service funded by this treasury.

We've [developed and shared our approach towards service sustainability](https://polkadot.polkassembly.io/post/1270), with the introduction of a 'Paid API Revenue Share Discount' scheme. In this scheme OnFinality pools the revenue from customers that pay for higher API pricing plans and distributes this revenue pool to partners that currently pay for and own each API endpoint proportionally based on the number of paid API requests that go to that API endpoint. The scheme was introduced in Q1 of 2023 and recently resulted in a discount to [Phala's Q2 treasury proposal](https://khala.subsquare.io/treasury/proposal/78) of $32.11. The discount for Q3 will be calculated at the end of the quarter and applied to the Q4 treasury proposal.

Service Details
===============

In the last 3 months (2023-05-01 and 2023-07-31) our Phala API service has:

-   Served a total of 884 million (884,697,566) responses

-   Accumulated over 8,000 GB of data egress 

-   The highest daily total was 14  million responses (14,269,503)  in a single 24 hour period

-   Khala had over 780 million API responses in the period

-   Phala had over 104 million API responses in the period

-   All time totals for Khala is 9,620,255,375 (9 Billion) since June, 2021

At the end of this period the 90 day uptime was 100% for Phala and 99.99% for Khala. You can always see live data of our API service on our public [status page](https://status.onfinality.io/).

Costings
--------

We are using a fixed price to allow us to bill in advance and to simplify the administration of this proposal, as well as provide cost clarity to both parties. This proposal includes combined running costs for our infrastructure for Phala and Khala for all of Q3 and Q4. **By paying 6 months up-front we will apply a 15% discount to our services.**

The total combined running cost is USD $21,820. This is all inclusive of capital and operating expenses, administration time from OnFinality DevOps, onboarding costs, backup costs, and all other monitoring and right-sizing by our team.

**See breakdown of costing and more details in the full report here:**
[https://docs.google.com/document/d/1mglyAhgruNXwnNWl3Li6TEoSImgBDXPzTOpB9yW2F8A/edit?usp=sharing](https://docs.google.com/document/d/1mglyAhgruNXwnNWl3Li6TEoSImgBDXPzTOpB9yW2F8A/edit?usp=sharing)

proposalId

OnFinality High Performance Public Infrastructure (Q3 & Q4 2023)

To meet Phala Network’s overall growth goals for 2023, the team invested heavily in product marketing and developer focused growth activities.
This proposal will summarize the latest investments to request funding from the Khala treasury.


**Polygon DevX Global Tour EU and Americas Sponsorship**

The [DevX Global Tour](https://polygon.technology/devxglobaltour) is organized by Polygon, a many-headed hydra, coming to every major continent. It’s a global tour of guild events, regional hackathons and invite-only “Polygon Connects”.
The DevX Global tour focuses on web3 native builders from the Polygon and Ethereum builders community.

**Recap on DevX Tour Europe**

Over the past month, the Phala team proudly sponsored and joined 6 guild meet ups across Europe as part of the DevX Global EU Tour.
These EU guild meet ups were live events where devs showcased their expertise and ideas for groundbreaking decentralized apps. Attracting global participants, all were eager to influence the next tech revolution 
In Amsterdam, Zagreb, London, Paris, Lisbon & Berlin, our team showcased technical capabilities of PhatContract and garnered great feedback. 
Overall around thousand attendees were met in all cities, several deals were closed and around 100 new developer activities were tracked.

**Lookout for DevX Tour Americas**

Our team is diligently preparing the second part of the DevX Global Tour in the Americas (US & LATAM). Guild meetups across the continent will take place in the following cities: Atlanta, Boston, Miami, New York, SanFrancisco, Rio and Buenos Aires during mid of September.
In the Americas tour we are looking forward to participating in the online hackathon to reach thousands of Polygon and Ethereum developers to use Phala’s product releases. 

**Partnership with Developer DAO**

[Developer DAO](https://www.developerdao.com/) is one of the most active web3 developer communities. With a developer first approach, this community holds over 10,000 members and over 80,000 followers.
Phala decided to work with Developer DAO to push the latest product releases of the LensAPI Oracle, Phat Functions and overall Phat Contract growth to a developer audience.
With this partnership we are growing the overall product reach and user expansion of our current product series.
Main perks of this partnership are two main hack challenges, where web3 native hackers are incentivized to deliver custom use cases based on the LensAPI Oracle as well as the Phat Functions.
Additionally, various web3 developer focused content will be created in the form of video creation, article publications, newsletter announcements, X-posts, and more.

**TheDefiant Newsletter Sponsorship**

The Defiant is the best DeFi and Web3 information platform. Since 2019, it has been producing independent journalism that keeps 300,000 investors informed every day.  An “industry must-read” according to The New York Times, it produces high-quality and unbiased content daily, for a targeted crypto-native audience.
This newsletter has over 200,000+ subscribers across their publications, where they generate millions of views from a hardcore DeFi audiences, including YouTube, podcasts, email newsletters, and their website.
Some of the numbers can be found below:
100,000+ Twitter followers
80,000+ newsletter subscribers with a 40% open rate
60,000+ monthly podcast listeners
118,000+ youtube subscribers
2.5+ million unique visitors to our site annually 

Phala has placed a sponsored post in the newsletter issue July 5th - July 8th 2023. 
The content can still be found as long-term content on [their website here](https://thedefiant.io/crypto-outperformed-stocks-and-commodities-in-2023). 


The reimbursement budget for all the listed marketing and growth activities is the following:

Dates: July 5th - August 15th, 2023 
1 PHA = EMA30 of 8/18 by subscan.io 0.096 USD
Sum of activities in USD: 76,500 USD
Sum of activities in PHA: 791,827


Treasury proposal for Product Marketing & Growth Expenses

Date: 6/24-7/25, 2023
Requested allocation:  13209.82 USD = 142,963 PHA ( $0.0924, 7 days avg price in CMC) 

# Overview Of the Events
**Parachain Summit 6/25-6/26, Denmark**
Parachain summit is an internal ecological gathering of Polkadot, mainly to discuss the latest progress of ecological projects, disclose the latest progress of parity, and discuss many internal topics such as technology and brand. 6.25, Phala x Composable co host a workshop - ‘XC smart contract exectution’. It’s the first time to intro Phat Contract to parachain ecosystem offline. 

**Polkadot Decoded 2023 Denmark - 6/28-6/29**
https://polkadot.network/ecosystem/events/decoded-2023/

**Polkadot Decoded Shanghai 2023 - 7/14**
https://lu.ma/PolkaDot-Decoded-Shanghai

**Presentation video**
https://www.youtube.com/watch?v=HaEOBwaXehI&list=PLKgwQU2jh_H_HdXvlaSOvRjZqo-vN2jxy&index=7

**Polkadot Decoded 2023 Satellite Event Vietnam - 7/25**
https://lu.ma/xhavn0m4

Expense in Decoded
The costs here include airfare, hotel, and transportation for Phala team members. Details are in the table below.

1 PHA = 0.0924 USD based on the 7-day average price on CMC.

# Proposal details:
https://docs.google.com/document/d/1etnPqMz5SBhnSFRbs5e7qqQDQAM8HdJa89Zkff7soK0/edit?usp=sharing

Treasury Proposal #82: Phala at Polkadot Summit and Decoded Global Tour from June 24th to July 29th.

Dear Khala Community,

We hereby submit our proposal for funding support to cover the operation and maintenance fees associated with the Subscan services provided for Phala and Khala networks from 01/07/2022 to 30/06/2023.

**Service Details:**
Subscan has been diligently providing the following essential services for both networks:

1. **Computing Resources:** Collecting and parsing chain data, and serving web user requests to ensure smooth network operations.
2. **Database Storage:** Indexing and storing chain data for seamless data retrieval and accessibility.
3. **Network Egress Bandwidth:** Maintaining optimal network performance to cater to web user requests.
4. **Monitoring and DevOps:** Implementing an internal alerting pipeline and automation for stable network operations.
5. **Node Status Monitoring and Notification:** Promptly notifying the network development team of any issues.
6. **Technical Support:** Offering comprehensive technical assistance for the networks' uninterrupted functioning.

**Summary of Current Charges:**

| Description                             | Billing Period        | Subtotal      |
|-----------------------------------------|-----------------------|--------------:|
| Subscan Service: Operation and Maintenance - Phala | 01/07/2022 - 30/06/2023 | US$9,588      |
| Subscan Service: Operation and Maintenance - Khala | 01/07/2022 - 30/06/2023 | US$9,588      |
| Service Charge - 5%                     | /                     |   US$958.8    |
| Total amount due in USD                 | /                     | US$20,134.8   |

We kindly request funding support from the Khala Treasury to cover the total amount due of US **$20,134.8**, and the amount of PHA will be converted based on the **EMA7 price** on the day of the official submission. 

**2023-08-02 06:56:12 (+UTC), Block #4389881
PHA EMA7 Price ( USD ): 0.097;
Number of PHA: 206,973.54**
https://khala.subscan.io/tools/price_converter?value=20134.8&type=block&from=USD&to=PHA&time=4389881

Securing this financial support will ensure the continued seamless functioning of Phala and Khala networks and sustain their growth and development. Your consideration of this proposal is highly appreciated. For any further details or clarifications, please do not hesitate to contact us.

Thank you for your attention and support!

Funding Proposal for Phala & Khala Operation and Maintenance Fee - 01/07/2022 to 30/06/2023

Due to the some big amount cross-chain transfer,  we have almost run out of liquidity on Khala network. To make the bridge work properly, we create this proposal to move 4M PHA from ChainBridge reserve account on both Khala & Phala, and Ethereum network at the same time.

`436H4jat7TobTbNX4RCH5p7qgErHbGTo1MyZhLVaSX4FkKyz` to SygmaBridge reserve account `436H4jatj6ntHTVm3wh9zs1Mqa8p1ykfcdkNH7txmjmohTu3` on both Khala and Phala network

The proposal will trigger the extrinsic on blockchain which will force transfer 4M PHA from the source account to dest account

[4th round] Move 4M PHA from ChainBridge to SygmaBridge - motion #233

This motion will trigger the runtime upgrade for Khala Network Runtime v1251 with the following major updates:

* Fix SubBridge XCM forwarding

For details, please check [the release page](https://github.com/Phala-Network/khala-parachain/releases/tag/v0.1.25-1)


Khala Runtime Upgrade v1251 - motion #231

This is a planned update for pRB v3, it includes:
- Fixes lifetime management for transations to reduce the occurance of BadSequence warning
- No more wraps single MQ message in batches
- Improves nonce management for transactions
- Updates subxt to the version used as in the main branch of phala-blockchain repo
- Merge prb package into the main branch

The milestone will be trackable as a pull request of the phala-blockchain repo:
https://github.com/Phala-Network/phala-blockchain/pull/1348

Feature update for pRB v3 July 2023

Due to the review of the milestones and the cost of the work, the budget is changed so Treasury Proposal #79 will be rejected and here is the new plan.
I, as an agent, initiated this proposal due to the need for Bond funds. Krhougs is the actual implementer of this proposal.

This is the updated plan for pRB v3, it includes:
- Updates subxt to the version used as in the main branch of phala-blockchain repo - 2hr
- Merge prb package into the main branch and make it compilable - 3hr
- Recheck nonce management logic and add comments in code - 1hr
- Fixes lifetime management for transations to reduce the occurance of BadSequence warning - 2hr incl. testing on Khala
- No more wraps single MQ message in batches - 4hr incl. testing on Khala

The milestone will be trackable as a pull request of the phala-blockchain repo:
https://github.com/Phala-Network/phala-blockchain/pull/1348

Re-propose for Treasury Proposal #79 - Feature update for pRB v3 July 2023

Due to the some big amount transfers send from Ethereum to Khala,  we are almost run out of liquidity on Khala network. To make the bridge work properly, we create this proposal to move 2M PHA from ChainBridge reserve account on both Khala, Phala, and Ethereum network at the same time.

`436H4jat7TobTbNX4RCH5p7qgErHbGTo1MyZhLVaSX4FkKyz` to SygmaBridge reserve account `436H4jatj6ntHTVm3wh9zs1Mqa8p1ykfcdkNH7txmjmohTu3` on both Phala & Khala network. The proposal will trigger the following extrinsic on blockchain which will force transfer 2M PHA from the source account to dest account

[3rd round] Move 2M PHA from ChainBridge to SygmaBridge - motion #228

This motion will add 7 Gatekeepers to Phala Network to add more redundancy. The workers are all registered on the blockchain with confidence level 2.

Workers info:
```
{
  pubkey: 0x5a6edcbad442a93062508d526903e18094afae8b252393818a1e3ba94059e634
  ecdhPubkey: 0x5a6edcbad442a93062508d526903e18094afae8b252393818a1e3ba94059e634
  runtimeVersion: 1
  lastUpdated: 1,687,680,150
  operator: 43cPs4dWRNwfrqzMPKFQjewvkx6djemjbzwa1ZzYZcwe2TdM
  attestationProvider: Ias
  confidenceLevel: 2
  initialScore: 966
  features: [
    6
    2
  ]
}
{
  pubkey: 0x22bf1068f0307b4df96c9c588928668152d3325beb56e2c60d640bb566c49d1d
  ecdhPubkey: 0x22bf1068f0307b4df96c9c588928668152d3325beb56e2c60d640bb566c49d1d
  runtimeVersion: 1
  lastUpdated: 1,687,724,550
  operator: 44tHNY4vuTxc1PBsS3eAxFUY4avJEmx6AMcwBswr7sDH7XMC
  attestationProvider: Ias
  confidenceLevel: 2
  initialScore: 948
  features: [
    6
    2
  ]
}
{
  pubkey: 0x4640075ae0c674b470ff216924fbf7a4b1e31a2330920d4a5c3a36a47ece6300
  ecdhPubkey: 0x4640075ae0c674b470ff216924fbf7a4b1e31a2330920d4a5c3a36a47ece6300
  runtimeVersion: 1
  lastUpdated: 1,688,874,702
  operator: 459LKVLV2U6fdtQLQ9ZXhojEQm9ncfqN76YRbR3CiJpCL3yb
  attestationProvider: Ias
  confidenceLevel: 2
  initialScore: 960
  features: [
    6
    2
  ]
}
{
  pubkey: 0xa2be777414d7b646177f5e939ecb7ca1202f3c22cb7ce374b5e153d5d9a61f41
  ecdhPubkey: 0xa2be777414d7b646177f5e939ecb7ca1202f3c22cb7ce374b5e153d5d9a61f41
  runtimeVersion: 1
  lastUpdated: 1,689,660,703
  operator: 44vn1X95id7xt7xnbjvXgG9E6R4hmgKzXSa4QLBpkziyXz1x
  attestationProvider: Ias
  confidenceLevel: 2
  initialScore: null
  features: [
    8
    2
  ]
}
{
  pubkey: 0x2a3dc1e67dc2a6eb5cb90cda494ed46808ce7ad04f2bde5528486ed814f4de3f
  ecdhPubkey: 0x2a3dc1e67dc2a6eb5cb90cda494ed46808ce7ad04f2bde5528486ed814f4de3f
  runtimeVersion: 1
  lastUpdated: 1,689,658,788
  operator: 42ha5pLkXGLg4M1aFkvBsbLWbmMYvgdCRetgUjSAMZ7swG53
  attestationProvider: Ias
  confidenceLevel: 2
  initialScore: null
  features: [
    8
    2
  ]
}
{
  pubkey: 0xfe68543bd43a368038599dc04a1af5a15ebe64b7d687d4a8bbb7bb61c6183205
  ecdhPubkey: 0xfe68543bd43a368038599dc04a1af5a15ebe64b7d687d4a8bbb7bb61c6183205
  runtimeVersion: 1
  lastUpdated: 1,689,659,736
  operator: 42sydUvocBuEorweEPqxY5vZae1VaTtWoJFiKMrPbRamy2BL
  attestationProvider: Ias
  confidenceLevel: 2
  initialScore: null
  features: [
    8
    2
  ]
}
{
  pubkey: 0xf0febdd5f84e47fdeb924fdf7b6e7025d013c768d1d07e7e0a6bd022d45a620b
  ecdhPubkey: 0xf0febdd5f84e47fdeb924fdf7b6e7025d013c768d1d07e7e0a6bd022d45a620b
  runtimeVersion: 1
  lastUpdated: 1,689,659,748
  operator: 457agnQ9yVdbdP5J57HHaUsBmwWogFeK7JCVSKd8bs5FxxKv
  attestationProvider: Ias
  confidenceLevel: 2
  initialScore: null
  features: [
    8
    2
  ]
}```

Add Gatekeepers operated by the Phala team - motion #227

Due to the high bridge liquidity utilization from Ethereum to Khala, we have almost run out of liquidity on Khala network. To make the bridge work properly, we create this proposal to move 500K PHA from ChainBridge reserve account `436H4jat7TobTbNX4RCH5p7qgErHbGTo1MyZhLVaSX4FkKyz` to SygmaBridge reserve account `436H4jatj6ntHTVm3wh9zs1Mqa8p1ykfcdkNH7txmjmohTu3` on both Phala and Khala network.

The proposal will trigger the following extrinsic on blockchain which will force transfer 500K PHA from the source account to dest account:

```js
{
  args: {
    source: { Id: '436H4jat7TobTbNX4RCH5p7qgErHbGTo1MyZhLVaSX4FkKyz' },
    dest: { Id: '436H4jatj6ntHTVm3wh9zs1Mqa8p1ykfcdkNH7txmjmohTu3' },
    value: '500,000,000,000,000,000'
  },
  method: 'forceTransfer',
  section: 'balances'
}
```

[Second round] Move 500K PHA from ChainBridge to SygmaBridge - motion #226

**Proponent:** 42PDjUSugisVhhNQg453fkDwLmg9QMzeWe9huR817xt7c3DW

**Date:** 5th July 2023

**Total Requested PHA:**  131,571.2487 PHA

**Short description:** Ongoing costs for the running of high performance, scalable, and reliable public infrastructure for Phala.

**Full Proposal:**  [https://docs.google.com/document/d/1WBHkW4osYw3cYnS_GCTuQzbBaMwtvUEjNXHSi1JEYCU/edit?usp=sharing](https://docs.google.com/document/d/1WBHkW4osYw3cYnS_GCTuQzbBaMwtvUEjNXHSi1JEYCU/edit?usp=sharing)

* * * * *

Original Motivation
===================

Setting up blockchain infrastructure is difficult, time consuming, and expensive:

-   It requires a level of server development expertise that many do not have

-   It's costly to run a full node nearly continuously, especially when your dApp's traffic is low and inconsistent. 

-   Running production level infrastructure is especially tricky. You need to autoscale quickly to handle bursty traffic, and you want to provide services in different regions around the world to provide low latency services - all of this is incredibly costly, but comes with significant economies of scale for a provider.

-   DevOps requires constant attention - time that would be better spent elsewhere building.

A shared node API service helps mitigate these barriers of entry to trying accessing a new protocol by reducing all these costs to near zero. We manage all the nodes for our users and distribute them across the world (with intelligent routing) to achieve global scalability from day 1, we monitor each node and ensure that they meet certain service levels, and we have the expertise and scale to handle production workloads and high peak traffic.

In summary, we try to reduce the pain of getting started on Khala and minimise the costs of accessing secure nodes while traffic from your dApp is low. When you grow, you can continue to use our shared API service, or we also [provide access to one click deploy dedicated Khala nodes](https://onfinality.io/dedicated_nodes) to any cloud of your choosing.

Background on our RPC Service
=============================

Since inception in November 2020 we have made a large number of improvements to our Ultimate API service focussing on three key areas; performance/reliability, providing more value from our Ultimate API service, and cost optimisation.

### Performance/Reliability

OnFinality is operationally striving for a minimum of 99.99% reliability, which means less than an hour of downtime each year.  We proudly display and share our [90 day uptime statistics](https://status.onfinality.io/) for each network publicly [here](https://status.onfinality.io/uptime/r40wwpclbwzm).

We have invested hugely into a team dedicated to optimising our application gateway and caching layer to ensure that we provide the fastest possible service for our customers. We run clusters in 5 different regions (North Virginia, Frankfurt, Tokyo, Singapore, and Australia) and across 3 different cloud providers (AWS, GCP, Alicloud) to ensure that we are fault tolerant to any single region or cloud provider ceasing service.

### Providing more value from our Ultimate API service

For customers that do sign up for paid API keys, we've been adding more and more features to provide a better experience. [Geolocation insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) provide statistics about where in the world communities are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives.  We can also now [automatically upsize the storage on nodes](https://blog.onfinality.io/onfinality-developer-update-auto-expand-storage-for-dedicated-nodes/) to prevent the risk of any downtime.

Finally, in Q2 of 2023 OnFinality [launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) support which was a huge enhancement allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

### Cost Optimisation

OnFinality is very conscious about providing a strong level of support for Phala/Khala  at an extremely competitive price. Cost saving measurement has been a significant focus on behalf of our customers, with advanced rate limiting controls implemented. We can, for example, rate limit each client on a burst and sustained basis and based on the request methods that they are calling (e.g. each state_traceBlock request is rate limited 45x more than chain_getBlock), [read more about these advanced rate limiting tools that we've developed here](https://documentation.onfinality.io/support/public-rate-limits).

Meaning that we can continue to provide generous public API endpoints for over 40 different networks for common-good applications, but restrict access to high volume users that abuse this free service. We've been able to manage our costs significantly on behalf of our customers as a result. 

We've [developed and shared our approach towards service sustainability](https://polkadot.polkassembly.io/post/1270), with the introduction of a 'Paid API Revenue Share Discount' scheme. In this scheme OnFinality pools the revenue from customers that pay for higher API pricing plans and distributes this revenue pool to partners that currently pay for and own each API endpoint proportionally based on the number of paid API requests that go to that API endpoint. The scheme was introduced in Q1 of 2023 and resulted in a discount to [Phala's Q1 treasury proposal](https://khala.subsquare.io/treasury/proposal/62) of $100.81.

Our cost optimisation efforts were validated in Q1 as we had the lowest cost per million responses across all of the major RPC providers that lodged a proposal to the Polkadot treasury. You can see how our costs compared to other RPC providers in the ecosystem during Q1 [here](https://docs.google.com/spreadsheets/d/1Utw2HfS7I5Gpyhrl9ejuj0CrQ4AcChGFteXdw0a8tro/edit#gid=0).

Service Details
===============

During Q2 of 2023, we've made a number of new improvements to our Ultimate API service that address performance/reliability, features, and costs.

Additionally, we are proud to have delivered some key service enhancements that benefit the Polkadot ecosystem in the last quarter. This includes:

-   [Launched Trace API](https://blog.onfinality.io/onfinality-launches-trace-api-for-unprecedented-visibility-into-your-dapps/) allowing unprecedented visibility for dApp builders. Trace API captures and records vital information otherwise not available through regular RPC methods and extrinsics (such as complete XCM transfer records and complete list of balance changes). These APIs are essential in order for [developers like Polkaholic](https://blog.onfinality.io/onfinalitys-new-trace-api-helping-colorful-notion-get-trace-data-from-over-40-substrate-chains/) to parse and understand XCM transactions.

-   [Geographical Insights](https://blog.onfinality.io/onfinality-adds-geolocation-insights-for-dapps-and-api-apps/) - API key owners can view statistics about where in the world your community are to help influence decisions around where to expand infrastructure and to view the effectiveness of regional BD initiatives

-   [Clarify our IP address handling](https://blog.onfinality.io/how-does-onfinality-deal-with-personal-information/) - OnFinality does not, and will never, correlate or link specific wallet addresses to the IP address or request origin making the RPC request

-   Added support for a number of new networks, including Anmol, HydraDX, Equilibrium, as well as Osmosis, Evmos, Harmony, Arbitrum, Optimism, Fuse, DFK Chain, Celo, and Klaytn from outside the ecosystem. OnFinality is a new one stop shop for all of your RPC needs from multiple ecosystems.

-   A variety of improvements to our health metric collection tools and automated recovery scripts to ensure our 99.9% SLA is exceeded.

-   Scale improvements to our team, processes, and systems to allow us to provide this same service to any  substrate team

Our customers are building cross-chain wallets, running some of the largest block explorers, and are indexing multiple networks - they've all benefited from these API access restrictions, improved monitoring, and the larger number of supported Polkadot chains. You can always see live data on our API service on our public [status page](https://status.onfinality.io/).

Costings
--------

This proposal includes combined running costs for our infrastructure for Phala Network in Q2 (April, May, June) 2023. The total combined running cost is USD $14,225.35.

Read the full report and breakdown of costings here: [https://docs.google.com/document/d/1WBHkW4osYw3cYnS_GCTuQzbBaMwtvUEjNXHSi1JEYCU/edit?usp=sharing](https://docs.google.com/document/d/1WBHkW4osYw3cYnS_GCTuQzbBaMwtvUEjNXHSi1JEYCU/edit?usp=sharing)

OnFinality High Performance Public Infrastructure (Q2 2023)

Dwellir is currently serving the community with public Phala and Khala RPC endpoint services.

This proposal is to cover the costs for Q3 2023.

Read the [full proposal here](https://docs.google.com/document/d/1IVlbdK3_gjqJGsWmVvyCgzbCU9sTDIeKL1QWsn-397s/edit?usp=sharing).

The PHA price has been calculated as the average prices over the last 30-days.


Dwellir - Phala & Khala Public RPC Endpoint Services (Q3 2023)

**Proponent/Paid to:** 41dYCD7Xx2Qhoph5CRQSTNeQWDJ7dpA1ZFNUvGK8RxUkrpkk

**Date:** 3rd July 2023

**Total Requested PHA:**  45,449.7456 PHA 

**Short description:** Ongoing costs for Quarter 2 (April, May and June) of 2023, for the running of a high performance and reliable data indexing managed service for Phala Network.

**Link to Full Proposal:** [https://docs.google.com/document/d/1TqifToL3kZ3haVZ2JxSxq2JnDTHu3K3O6V6LXIEswiI/edit](https://docs.google.com/document/d/1TqifToL3kZ3haVZ2JxSxq2JnDTHu3K3O6V6LXIEswiI/edit)

* * * * *

Original Motivation
================

Almost every blockchain has a need to process and query data, however everyone knows that a core weakness of blockchain data is that the processing and query performance is extremely inefficient. SubQuery is an open source platform that solves that.

Additionally, managing infrastructure can also be extremely challenging and many teams don't have the expertise or resource that is needed to deploy indexers to cloud providers and then run them at high availability so that they can be relied on for production use cases. SubQuery provides a hosted service with 99.9% reliability to remove this burden from teams,  so they can stay focused on building their dApps. 

Service Details 
================

Phala Network is currently leveraging SubQuery's enterprise-level managed service to provide reliable hosting for their SubQuery projects.  This critical service provides production data to applications built by the Phala Network team and the 99.9% uptime reliability ensures a seamless experience for the core team and their ecosystem.

Over the period of 2023-04-01 to 2023-06-30, SubQuery supported 5 different projects for Phala Network with a total of 9 (4 staging and 5 production) deployments. These projects were run in a shared database for a total of 19,656 compute hours. Each project deployment requires an indexing service, a compute service, and database access run in a production environment and monitored constantly to ensure availability.

Costings
--------

This proposal includes combined running costs for our infrastructure for Phala Network from 1st April  2023 until 30th June 2023. The total combined running cost is USD $4,914.00.

**Read the Full Proposal here:** [https://docs.google.com/document/d/1TqifToL3kZ3haVZ2JxSxq2JnDTHu3K3O6V6LXIEswiI/edit](https://docs.google.com/document/d/1TqifToL3kZ3haVZ2JxSxq2JnDTHu3K3O6V6LXIEswiI/edit)

SubQuery Managed Service Solution (Q2, 2023)

Call hx: 0x114ac89ff9cc66ec7b42d2bb4cc66d49395caffa0e64154bbc371eab0b20b5ef
Date: 1/6-10/6, 2023
Requested allocation: 62881 USD =  PHA ( $0.1049, 7 days avg price in CMC) 
Proposal details
[https://docs.google.com/document/d/1fSzj3AYdox3FBaOHCwuX7dT2wwYVhxcdIEjXFzh9a1M/edit?usp=sharing](url)

# Overview Of the Events
 ## 1/6 - 4/6, ETHSeoul
https://2023.ethseoul.org/
ETH Seoul is a festival for builders in the Ethereum ecosystem for the Korean and global community. It’s first time for Phala team visit Seoul for developer events.

The team met some great potential partners in the ETHSeoul for Phat Contract. Like Flashbot team who is doing research for SGX solution which we will meet at ETHCC in Paris again.

### Briefly recap
80% of the ETHSeoul are developers, and 20% left are marketing and business. 
Eth devs believe that the best Ethereum events are the hackathons for developers at EthGlobal and the technical discussions for Ethereum at EthCC and EthDenver, which we will join.
No new stories happen, still around AA, ZK, DID, and the “BOS” concept from the Near team.
The projects from Near, Sol, and Cosmos got the presentation chance in ETH events, but no Polkadot ecosystem which seems a little disappointing.

## 6/6 - 7/6, Buidl ASIA
https://www.buidl.asia/
Hosted by KryptoSeoul, BUIDL Asia is a technical conference dedicated to sharing technical and business developments in the crypto space and highlighting solid projects and players in the industry. Since 2018, BUIDL Asia is the ultimate opportunity to interact among builders and to find diverse opportunities in terms of business development, employment, and insight sharing.

Phala team shares what is Phala and Phat Contract at the booth.

And It’s the 1st time we make a public speech for when we launched the programmable oracle - LensAPI Oracle. 

Phala tech workshop at Buidl Asia 2023.

## 6/8-6/9, HackaDOT 
https://www.hackadot.xyz/
It’s the 1st time Polkadot host a hackathon in South Korea. There were 8 teams joining the final presentation stage. Wenfeng, the core developer from Phala is one of the mentors for HackaDOT with Moonbeam and Astar team and other founders came from South Korean companies.
Wenfeng also joined the panel discussion at the HackaDOT after-party.

# What we have learnt from the whole South Korea Tour
1. Game is a trend in the East Asia Market; Most of them will attend IVC conf in Japan later
If you want to expand the market in Korea, collaborate with a game company first - suggestions from the local community;
2. The developer community in Korea is very active, with Solana, SUI, Aptos, and Near all attracting developers from top Korean universities. 
3. There are over 10 Korean universities that offer blockchain-related courses, and universities also support developers in entrepreneurship. 
4. The locals are very unfamiliar with the Polkadot ecosystem.

# Expenses in South Korea
The costs here include airfare, hotel, and transportation for Phala team members. Details are in the table below.

1 PHA = 0.1049 USD based on the 7-day average price on CMC.
|Expenses List||
|---|---|
|Item|USD|
|Flight|1017|
|Hotel|4625|
|Brochure|221|
|Transportation|333|
|VISA|347|
|Phone card|54|
|Total|6597|

Total 62881 PHA




Treasury proposal #75 - Phala at Korea Blockchain Week from June 1st to 10th.

With the latest runtime upgrade happened on Khala and Phala, SygmaBridge pallets have been enabled on those two networks. SygmaBridge will be part of the SubBridge, provide the functionality of transferring asset between parachain and EVM chains.

We have finished all tests, now we create this proposal to move 500K PHA from ChainBridge reserve account `436H4jat7TobTbNX4RCH5p7qgErHbGTo1MyZhLVaSX4FkKyz` to SygmaBridge reserve account `436H4jatj6ntHTVm3wh9zs1Mqa8p1ykfcdkNH7txmjmohTu3` on both Khala and Phala network. The proposal will trigger the following extrinsic on blockchain which will force transfer 500K PHA from the source account to dest account:

```js
{
  args: {
    source: { Id: '436H4jat7TobTbNX4RCH5p7qgErHbGTo1MyZhLVaSX4FkKyz' },
    dest: { Id: '436H4jatj6ntHTVm3wh9zs1Mqa8p1ykfcdkNH7txmjmohTu3' },
    value: '500,000,000,000,000,000'
  },
  method: 'forceTransfer',
  section: 'balances'
}
```

Move 500K PHA from ChainBridge to Sygma Bridge - motion #221

This motion will trigger the runtime upgrade for Khala Network Runtime v1250 with the following major updates:

- Enable Sygma bridge pallets for configuration
- Upstream update to Substrate v0.9.42 and node client stability improvements

For details, please check [the release page](https://github.com/Phala-Network/khala-parachain/releases/tag/v0.1.25)


Khala Runtime Upgrade v1250 - motion #220

**Requested**: 206547.558 PHA

**Idea**: Closed Beta rewards

### Description

Phat Contract Closed Beta is launched before the release of [Phat Contract](https://wiki.phala.network/en-us/build/general/intro/) on Phala mainnet. The aim of it is to monitor the experience of developers, identify any potential issues, and then address them in order to improve the quality of our service.

Both Phala's partner projects and individual developers are involved in this test. For test rewards, the prize pool is $10000 PHA in total; for innovation rewards, $5000 - 10000 PHA for each project.

Phala proposes a Closed Beta prize pool to encourage engagement, and this repository is for individual developers to submit their projects to win the rewards.

According to the [GitHub submissions](https://github.com/Phala-Network/closed-beta-submission/issues) and the reward claim records, as well as based on Closed Beta rules, there are 8 participants who meet with Test Rewards requirements, and each of them will get 5737.37 PHA. For the 2 Innovation Rewards participants, each of them will get 51636.89 PHA. Kindly check the details below:

| Name | Github link | Awards | Rewards | Assets | Address |
| --- | --- | --- | --- | --- | --- |
| tioneb | https://github.com/Phala-Network/closed-beta-submission/issues/2 | Test | 5737.37 | PHA | 425zcwvAp2TbQ7TxkuDfu8niRgC4xPfmrCLgNgfhDWe7DSnX |
| Arno | https://github.com/Phala-Network/closed-beta-submission/issues/1 | Test | 5737.37 | PHA | 44siNV2pbrTSwiL3KdT4VVC1yqcSvfGzxcd7rHMD1cgQnjcn |
| Janema | https://github.com/Phala-Network/closed-beta-submission/issues/8 | Test | 5737.37 | PHA | 41owbtwKf7dfZxEfdfhRfey4uGLkg8V9iLG74ZhTQnMnsAwA |
| GuiGou | https://github.com/Phala-Network/closed-beta-submission/issues/7 | Test | 5737.37 | PHA | 428Hd45Yn648kZmt5zY5R1hgMofr9qfDP1YpwhUrrNwtSDZ6 |
| Oliver Soptq | https://github.com/Phala-Network/closed-beta-submission/issues/4 | Test | 5737.37 | PHA | 45NAoz4deiVVYbnAtGXTHQua4JCTJEErMa7N5SxK1jAw4Geo |
| ricardo-eth | https://github.com/Phala-Network/closed-beta-submission/issues/5 | Test | 5737.37 | PHA | 44bs42DpuJZeQ3LhgSNjEd2FLhH7to39CcwzRmnzz4GLKnez |
| Entity54 | https://github.com/Phala-Network/closed-beta-submission/issues/3 | Test | 5737.37 | PHA | 41Me3Pt7qhAEupeF6ZB2coC2coN3ENBpYJuMvALXz86HXqTe |
| Rom1io | https://github.com/Phala-Network/closed-beta-submission/issues/6 | Test | 5737.37 | PHA | 452MR4QcVhtwjgvnw32U5A4YSxos2SVryzQ7sXYVMKSx9vy6 |
| tioneb | https://github.com/Phala-Network/closed-beta-submission/issues/9 | Innovation | 51636.89 | PHA | 44ZcCH962Wv2vpw9uFhGZSAsQb5AixbMARpiVDH24jXT6LHm |
| Entity54 | https://github.com/Phala-Network/closed-beta-submission/issues/10 | Innovation | 51636.89 | PHA | 41Me3Pt7qhAEupeF6ZB2coC2coN3ENBpYJuMvALXz86HXqTe |

Total: 149172.74 PHA for this batch of rewards.

Test rewards participants who have not yet claimed can still claim your rewards before July 20th CET 23:59. The rest of PHA will be used to support Phat campaigns.

Closed Beta Rewards Application - treasury proposal #74

This motion will trigger the following action:

- Update Gemeni Balancer Phat Contract identified by `44njZguKay8PQ7B3U1q6sjtJMyEjK5vJa4xFfeMNyUBxc5Vd`
    - Fixed the halving value calculation mistake caused by the incorrect handling of periods.

This is a companion motion of [the Phala motion](https://phala.subsquare.io/council/motion/62)

accountId

Update Gemini Balancer Phat Contract - motion #218

This motion will trigger a Transact message on Kusama to accept the HRMP request sent from Picasso.

The transact will be performed on Kusama/Polkadot with the call:

```
0x3c0127080000
```

which can be decoded as:

```
hrmp.hrmpAcceptOpenChannel(
    sender: 2,087
)
```

Khala's sovereign account has already got enough deposit to open the channels.

Accept HRMP channel from Picasso - motion #217

This motion will set the tokenomic balancer controlled by a Phat Contract. The contract controlled account is generated within the Phat Contract, living at `0xaaa789d2b1232cb53e2f3e964d7bf924069becc4979451f9c67935521a7f500e`.

The contract code is available at: <https://github.com/Phala-Network/tokenomic-contract>

Setup Gemini tokenomic balancer - motion #216

This motion is a retry of:

- [Motion 212](https://khala.subsquare.io/council/motion/212): incorrect `proposedMaxCapacity` (should be 1000, but given 10,000)
- [Motion 209](https://khala.subsquare.io/council/motion/209): didn't have enough PHA to create assets
- [Motion 207](https://khala.subsquare.io/council/motion/207): didn't receive enough votes.

## Original Proposal

This motion will first trigger a Transact message on Kusama to open a HRMP request to Picasso Network then register PICA on Khala.

The transact will be performed on Kusama with the following call:

```
0x3c0027080000e803000000900100
```

which can be decoded as:

```
hrmp.hrmpInitOpenChannel(
  recipient: 2,087
  proposedMaxCapacity: 1,000
  proposedMaxMessageSize: 102,400
)
```

Phala's sovereign account has already got the enough deposit to open the channels.

PICA registry info is:

```
Picasso PICA: id=15, path=”../Parachain(2087), sym=PICA,dec=12, exePrice=default
```


Council Motions