Gemini Tokenomics (Worker Rewards)
This document contains the Supply-end Tokenomics for Phala Network, which defines how workers get their rewards by sharing the computing power.
To read about how Demand-end users can stake PHA to use the network, see Stake to Compute.
After the approval of the “Gemini Tokenomics upgrade" democratic referendum on the block height #1,467,069, we have updated the content of the Supply-end Tokenomics as follows:
Design Targets
The overall economic design is built to address these points:
Support Phala Network’s trustless cloud computing architecture
Consensus-Computation Separation
Linearly-scalable computing workers (100k order of magnitude number of workers)
Incentivize workers to join the network
Ensure payment for power supplied irrespective of demand, especially at network bootstrap
Subsidize mining pool with 70% of the initial supply over time
Bitcoin-like budget halving schedule
Power the Phala and Khala at the same time
Application pricing
On-chain performance
The following details some key elements of the economic model.
Overall Design
Related Workers
Phala Supply-end Tokenomics applies to any workers running on Phala or Khala.
A virtual score for an individual worker representing value earned which is payable in the future, to motivate workers to behave honestly and reliably
Equal to the expected value of the revenues earned by the worker for providing power for the platform
Changes dynamically based on the worker’s behaviors and the repayment of Rewards
Params used in simulation:
Performance Test
A performance test measures how much computation can be done in a unit of time:
For reference,
The table is based on the version while writing of this documentation and is subject to changes.
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
Minimum Stake
Proposed parameter:
Locked state $PHA token can also be used for mining staking, e.g., Khala Crowdloan reward
Cost
General mining process
Decreased according to the Slash Rules if the worker misbehaves
Finally, once the worker decides to stop mining, they will wait for a Cooling Down period $\delta$. They will receive an one-time final payout after the cooldown.
Proposed parameter:
When there’s no payout or slash event:
Proposed parameters:
Payout Event
In order to stay within the subsidy budget, at every block the budget is distributed proportionally based on the current Worker Shares:
Proposed algorithm:
Subsidy Budget
Heartbeat & Payout Schedule
If they fail to send the Heartbeat transaction to the chain within the challenge window, the update of their value promise will be
Potential parameters:
Slash rules
The slash rules for workers are defined below. No slash rules have been implemented at the moment but will start in the near future.
Final payout
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