AMA about Phala new Tokenomic

Phala Network Economic Paper Preview

It will also be submitted to the Khala Network Council as a proposal, and will be launched after the democratic referendum is passed.

If you have any questions about the new token economic, please discuss it below.

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  1. In previous version of economics what I found nice was
    better rewarding of running multiple miners with minimal stake than one with sum of those stakes
    Thank to stake amount being under square root in picking miner equation.
    Now it changed and based on my calculations there is only small drawback when staking larger amount of token on single miner.
    That was some kind of incentive for decentralization. Also that was making this project more PoW than PoS (which is good IMO)
    Do you really want to change that? Why?

Staking in previous model

My calculations

  1. Does idea of online reward and compute reward also has been abandoned? There will be only online reward based on V?
    What about dapps which will want to run only on secure devices? Is it already calculated under that 0.7 / 0.8 factor?

  2. According to eco paper:

The performance test will be performed:
Before mining to determine the Minimum Stake
During mining to measure the current performance, and to adjust the V increment dynamically

Does it mean it will run 100% time with 100% cpu usage?

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i think the Dapp will be Defi like , as PHA is trusted computing as it said. also AntFinance has a team also do Trusted computing in financial area.

Once Phala is open for developers to deploy their apps, there will be an option for them to choose which tiers they will accept. Since Tier 1, 2, 3 have better security, they can potentially get higher chance to win the confidential contract assignment. However, Tier 4, 5 are useful in other use cases, and therefore can be a more economic choice for the developers.

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  1. You raised a good point. Short answer is that, more stake and less miners is not what we desire.

    We have put a lot of thoughts on this. One thing is very important, but we haven’t given out any details is the Shares, which determines how to actually payout to the miner. The share formula we published is only the baseline, which is just V itself. In the model, V is independent calculated. However, the mining share will significantly affect how much a miner can earn (thus the final APY).

    In our simulation, we have been spending most of the time tweaking the share formula a bit, and it results in the distribution will shift from purely V to a combination of V and P, and therefore the impact of initial stake is reduced.

    In general, compared with higher total stake, we want the network to attract more miners that can offer safe computation service to the developers. Although the payout mechanism not finalized yet (our economist team is work really hard in the recent months :sweat_smile:), we will follow this direction in our design.

  2. Online reward and compute reward will be combined together. Now we have the miner in one of the state:

    • Idle (online)
    • Active (assigned computation task)
    • CoolingDown
    • Stop

    However, in the beginning we are not ready to deploy application and distribute tasks. So we don’t really have “Active” state enabled now.

    From the mining cost perspective, now the CPU will be 100% occupied to avoid over commitment. (Sorry, we really hate to do that, but until we worked out some advanced techniques to fix the over commitment problem, the most straightforward way is this. We do have some good ideas in our mined to explore in the future.) It means there’s no difference in terms of the cost between the “Active” and “Idle” miners. So it also makes some sense to give them similar reward.

    The real Active miners have the contract assigned. So they can earn more from the developer gas fee payment. And of course the developer can choose what kind of the miner to deploy the dapps. For example, some critical apps will need to deploy on Confidence Level Tier 1/2/3 only. So the better the hardware (in both the performance and confidence level), the higher chance they can become active.

  3. Yes. Also mentioned in the above answer.

Btw, the new mining interface is already defined in our latest codebase. The team is working like crazy to delivery it.

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Yes, but not only DeFi. We are building the Web3 cloud.

where is the final smart contract we can read for?

I guess you meant the Substrate mining runtime code, and the off-chain Gatekeeper code. It’s still under development. We will announce it once it’s finalized. The development is fully open source. You can follow our code base on Github.

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