Phala Network PHA

Commentary versus actual token vesting

1) Genesis Allocation PHA launched in September 2020 as a Polkadot parachain, against a fixed maximum supply of 1,000,000,000 allocated across six buckets that reconcile to 100%: - Mining and compute rewards: 700,000,000 PHA (70%). Distributed through Matrix Mining at an initial 720,000 PHA per day (576,000 after tax), decreasing 25% every 180 days. A fixed pool with no extra issuance. - Investors: 150,000,000 PHA (15%). 2020 round with Candaq Group, IOSG Ventures, SNZ Holding, Waterdrip Capital and Incuba Alpha Group. 60% unlocked at TGE, 20% every six months thereafter, fully vested within one year and complete in 2022. - Parachain slot auction: 69,000,000 PHA (6.9%). Raised $3.6 million in the Polkadot parachain slot auction, with three separate vesting allocations: Polkadot (2.2% of max supply) — 15% of this allocation unlocked immediately in June 2022, with 85% vesting linearly over 96 weeks. Kusama (2.5% of max supply) — 34% of this allocation unlocked immediately in July 2021, with 66% vesting monthly over 11 months. Reserved (2.2% of max supply) — this allocation remains locked. - Founding team: 50,000,000 PHA (5%). 20% unlocked at TGE, with 5% of the allocation unlocking monthly thereafter. - Stakedrop: 21,000,000 PHA (2.1%). Distributed to KSM stakers; fully vested at TGE. - Testnet incentive:10,000,000 PHA (1%). For running gatekeeper and full nodes on testnets; fully vested at TGE. 2) Emissions from Mining Rewards The 700,000,000 PHA mining allocation is released through Matrix Mining, starting at 720,000 PHA per day (576,000 after tax) with the daily rate cut by 25% every 180 days. Because each period pays a quarter less than the one before, emission tapers quickly, roughly 94% of everything this curve will ever pay out lands within the first five years, and 99.7% within ten. Each reward as it is generated is split rather than paid whole to miners. Under the Polkadot parachain, 20% of the mining rewards generated by each block funded the treasury, with the remainder going to Secure Worker miners. 3) Migration to Ethereum and Post-Migration Structure Two factors drove the migration: the Polkadot parachain slot expired on 20 November 2025, and Intel deprecated SGX in favour of TDX and GPU-based confidential compute, making the original worker architecture obsolete. Referendum 77 authorised a six-phase migration to an Ethereum L2 built as an Op-Succinct Conduit rollup. Following the migration, mining rewards distribution were updated: Treasury 20%, Ethereum Staking Rewards 40%, GPU Miners 40%, adding stakers as a recipient class alongside compute providers. Rewards are now calculated on hardware weight multiplied by uptime and paid hourly in vPHA, replacing the Matrix Mining rate. 4) Circulating Supply After Migration PHA now exists as an ERC-20 on Ethereum, with circulating supply reported by independent research at approximately 83.1%, consistent with all investor, stakedrop, testnet and both active parachain tranches having completed, the team schedule having run since 2020, and mining emission having passed its material phase.