This is a proposal to the whole PHAmily (both the Khala and Phala community):
Marvin Tong, the founder & council member of Phala Network published an open discussion for the strategy of Polkadot slot auction before. The Phala community had a month- long discussion and the major ideas are:
We want to listen to our community and support all of these ideas. We strive to give a simple, fair and long-term benefit plan.
Here it is:
10% of $PHA supply is the budget for this round of Polkadot slot auction.
In our tokenomic breakdown, we have reserved a total of 6.9% from our 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 mining tax. So we can get at least 70 mln $PHA for slot auction:
Months | Mining Rewards | Tax To treasury |
---|---|---|
6 | 129600000 | 25920000 |
12 | 97200000 | 19440000 |
18 | 72900000 | 14580000 |
24 | 54675000 | 10935000 |
Total | 354375000 | 70875000 |
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.
We are planning to join the auction via the following Decentralized tools:
Other tools are still under review
You could join the auction via following centralized platforms:
Other platforms are still under review
We think Polkadot & Kusama community members are already tired of following so many rules to get rewards, so we abstain from using any incentives such as:
We want to give the community a simple and clean 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. While we abstain from giving early-bird or referral bonuses, we still want to value our supporters who helped us to obtain our Kusama parachain slot. Therefore, we will still use one simple bonus mechanism for our early supporters.
We will provide a tool that can help you verify if your Polkadot address is "old gangster" or not.
In the case that Phala doesn't win during the campaign of auctions #6 - #11, your contribution for $DOT will be returned to your addresses. And Phala community will choose from the following strategy:
With this strategy, we are set for all possibilities and think that this is in the interest of the whole community.
Phala Network is proposing a strategy to join Polkadot slot auctions #6 to #11 as a crowdloan bidder. The auction cap will be set to $8 million DOT, and the total reward budget will be 10% of $PHA's total supply. The basic reward is that 1 $DOT contribution will return 12 $PHA as a reward, with 15% unlocking immediately and the rest vesting linearly over 96 weeks. There will be no whitelist, early bird, or referral rewards, but there will be an "Old Gangster" bonus for contributors from previous Khala Kusama auctions and those with over 300 $PHA on their Khala address. If Phala loses, they will either exit the auction or upgrade the Khala network to the economics of Phala. All contributors to the Phala slot auction can get on the whitelist for Phala World 1st generation NFT sales.