Crypto News
The Phala Network community has approved a proposal to completely migrate the AI-focused project from the Polkadot parachain to the Ethereum layer-2 network. The decision marks a strategic shift to leverage the Ethereum ecosystem for secure AI services and GPU computing.
The proposal was approved this week, with Phala announcing that the migration will begin before November 20. $PHA token holders will receive the new ERC-20 version at a 1:1 ratio, while staking, rewards, and governance functions will continue to operate seamlessly on the new infrastructure.
Phala launched a working Ethereum L2 in January but has maintained a presence on Polkadot to date. The proposal argues that a complete migration and exclusive focus on Ethereum will maximize potential and reduce operating costs. The project won one of the first parachain slots in the Polkadot auctions in late 2021.
The decentralized cloud computing network provides private, secure, and scalable computing for AI-enabled Web3 applications. The author of the proposal, “doylegxd,” recommends consolidating operations into a more robust ecosystem aligned with the EVM to support growth goals.
According to the proposal, extending the Polkadot parachain slot would force the project into “limited scalability infrastructure,” requiring significant maintenance resources. The L2 approach offers lower operating costs and direct integration with Ethereum liquidity and tools. The architecture also allows for the deployment of secure computing workloads based on TDX and next-generation GPUs, with positive initial commercial signals.
Phala is among the few projects that have opted to migrate entirely from Polkadot to Ethereum. Other parachains like Astar and KILT Protocol have opted for a multi-chain expansion strategy rather than abandoning the original ecosystem. This move reflects Phala’s assessment that leveraging specialized technology requires a full commitment to Ethereum infrastructure.
$PHA currently ranks 11th among AI-agent-related crypto assets with a market capitalization of $80.6 million. The token is among the top 50 largest AI tokens according to available market data. The move is intended to position Phala for growth in the expanding intersection of artificial intelligence and blockchain technology.
