Multisig Address for temporary funds management :
415NQ4uLtTQwvNLBqXg9fjYqWLHVTbT44DmnkuvpXJ45aAjv
With the impending sunset of the Khala network, the majority of exchanges have opted to integrate ERC20 as the replacement network. This transition is critical to ensure stable deposit and withdrawal functionality for community users on these exchanges.
To facilitate a smooth conversion of existing Khala PHA tokens to ERC20 PHA tokens, we plan to assist exchanges in completing the necessary fund circulation operations before the network’s closure.
The exchanges involved include: OKX, Kucoin, Gate, MEXC, and Kraken. Given the large amount of funds required, the involvement of multiple exchanges, and the need for simultaneous execution, we propose a temporary allocation of 50M PHA from the treasury to ensure efficiency and security during this process.
a. Fund Circulation Mechanism:
- Exchanges stop the deposit and withdrawal of Khala PHA first.
- Phala team bridge the needed funds to ERC20 via subbridge from Khala, and deposit ERC20 PHA into the Exchanges.
- Withdraw an equivalent amount of Khala PHA from exchanges.
- Repeat the above operation in several exchanges.
- Ensure exchanges has no Khala PHA left then they can start the deposit and withdrawal of ERC20 PHA.
b. Restrictions on Fund Usage:
- The allocated funds will be used exclusively for bridge transfers and exchange deposits/withdrawals.
- No market trade will be involved.
- All funds will be returned to the treasury immediately after the exchange operations are completed.
c. Timeline:
- The entire operation will be completed no later than the day of the Khala network sunset.
a. Requested Amount:
- A temporary allocation of 50,000,000 PHA from the treasury.
b. Purpose of Funds:
- Exchange Fund Circulation: Facilitate the conversion of Khala PHA to ERC20 PHA for exchanges.
- Transparent Operations: All transactions will be traceable on-chain.
- Quick Return: The funds will be returned to the treasury immediately upon the completion of the exchange operations.
c. Involved Exchanges and estimate necessary:
- OKX, 30M
- Kucoin, 15M
- Gate, 7M
- MEXC, 9M
- Kraken, 35M
a. No Market Risk:
- The funds will only be used for bridge transfers and exchange deposit/withdrawal operations.
- No market trading will occur, avoiding any risk of price fluctuations.
- All transaction will be covered by our team. We will return the same amount to the treasury.
b. Fund Transparency:
- All operations will be recorded on-chain, allowing the community to monitor the movement and usage of funds.
c. Commitment to Fund Return:
- The requested funds will be fully returned to the treasury upon the completion of exchange operations, ensuring fund safety.
- The requested funds will be stored in a Multisig-address, controlled by Marvin, Hang and Doyle. The transaction process eliminates the possibility of malicious actions by a single individual.
We kindly ask for the community’s and council's support in approving this proposal to safeguard the smooth operation of exchange integrations and uphold our commitment to transparency and accountability. Together, we can achieve a strong foundation for the next phase of Phala’s growth.
Just to update here, we had helped all the exchanges finish the converting job. And had return the funds on time. Here is the tx link for the pay back.
https://khala.subscan.io/extrinsic/7918239-15