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:

  1. Support Phala Network’s trustless cloud computing architecture

    • Consensus-Computation Separation

    • Linearly-scalable computing workers (100k order of magnitude number of workers)

  2. 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

  3. Application pricing

  4. On-chain performance

The following details some key elements of the economic model.

Overall Design

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:

  1. Before mining to determine the Minimum Stake

  2. 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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