{"id":71335,"date":"2025-10-10T08:53:08","date_gmt":"2025-10-10T08:53:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/71335\/"},"modified":"2025-10-10T08:53:08","modified_gmt":"2025-10-10T08:53:08","slug":"phala-network-will-become-ethereum-l2-following-community-vote","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/71335\/","title":{"rendered":"Phala Network Will Become Ethereum L2 Following Community Vote"},"content":{"rendered":"

Polkadot parachain Phala is set to become an Ethereum layer 2 after the community voted in favor of a recent proposal aimed at ramping computation offerings to enterprise client.<\/p>\n

\u201cProposal Passed: Phala is Migrating to Ethereum L2!\u201d a\u00a0Phala X post from Wednesday reads, adding that it marks the next chapter for the project as it pushes for \u201cgreater scalability and enterprise-grade security.\u201d<\/p>\n

The post adds that Phala (PHA) tokenholders will receive the new ERC-20 variant at a 1:1 ratio, the \u201cmigration\u201d will start before Nov. 20, and that \u201cstaking, rewards, and governance\u201d will continue seamlessly on the new layer 2 (L2). <\/p>\n

\"\"Phala announces key changes to its community. Source: Phala<\/a> <\/p>\n

This isn\u2019t an abrupt move by Phala, as it already has a \u201clive and functional\u201d Ethereum L2 that was launched in January. As the proposal explains, the project aims to fully migrate and focus solely on Ethereum to maximize potential upside.\u00a0<\/p>\n

Phala is a decentralized cloud computing network that is designed to provide private, secure and scalable computation for AI-integrated Web3 applications. It was one of the first projects to secure a parachain slot as part of the auctions held by Polkadot<\/a> in late 2021.\u00a0<\/p>\n

The proposal was initially submitted<\/a> on Sept. 27, with the leader of Phala Network ecosystem success \u201cdoylegxd,\u201d recommending the move to consolidate staking, governance and confidential compute in a \u201cstronger\u201d Ethereum Virtual Machine-aligned<\/a> ecosystem.\u00a0<\/p>\n

Related: Polkadot DAO approves 2.1B token cap on DOT supply in tokenomics shift<\/a><\/p>\n

The proposal also argued that renewing the parachain<\/a> slot on Polkadot would lock the project into \u201cinfrastructure with limited scalability\u201d that would require significant resources to maintain. While working in Ethereum would also enable it to utilize next-gen computation tech.\u00a0<\/p>\n

\u201cL2 offers lower operational overhead and direct integration with Ethereum liquidity and tooling. It is also the natural home for deploying TDX and GPU-based confidential compute workloads, where we already see early-stage commercial traction,\u201d the proposal reads.\u00a0<\/p>\n

Why migrate from Polkadot? <\/p>\n

Phala appears to be one of the few that have decided to completely move from Polkadot<\/a> to Ethereum.<\/p>\n

Other projects, such as Astar<\/a> and the KILT Protocol, opted<\/a> to expand their integration to Ethereum in a multichain approach instead of abandoning Polkadot. <\/p>\n

Phala\u2019s proposal suggests the move was aimed at capitalizing very niche tech that it needs to spur further growth.\u00a0<\/p>\n

The PHALA token is the 11th largest AI-agent-related crypto-asset by market capitalization at $80.6 million and is among the top 50 largest AI tokens by market cap, according to data<\/a> from CoinGecko.<\/p>\n

Magazine: Meet the Ethereum and Polkadot co-founder who wasn\u2019t in Time Magazine<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Polkadot parachain Phala is set to become an Ethereum layer 2 after the community voted in favor of…\n","protected":false},"author":2,"featured_media":71336,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":["post-71335","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/71335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=71335"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/71335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/71336"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=71335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=71335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=71335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}