Greetings, Phala Community Members,
We are thrilled to announce that Phala Network has triumphantly secured slots in the Polkadot #58 Auction on December 30th, 2023. This milestone is a testament to our collective efforts and the unwavering support from our community. You can view the auction details here: Polkadot Auction #58.
In the lead-up to this auction, Hashforest Technology generously fronted the necessary funds to ensure our participation was both strategic and successful. Our victory in the auction came at a significant cost, totaling 35,500 DOT. You can find more information on the bid here: Polkadot Slot Auction Bid.
In light of these expenses, we are formally requesting reimbursement from the funds attributed to the slot auction in the tokenomics in the amount of 2,521,776 $PHA. This reimbursement will enable us to cover the costs incurred during the auction. Importantly, the DOT we unlock in the future will be strategically reinvested to support subsequent slot auctions and enhance our network's resources.
Regarding the funds used for Slot Auctions within the Tokenomics, these funds used to be centrally managed by the team in the past (Address:42fy3tTMPbgxbRqkQCyvLoSoPHwUPM3Dy5iqHYhF9RvD5XAP). In order to ensure the safety of funds and achieve decentralization, we officially transferred the funds to a multisig wallet. The wallet is managed by Marvin, Hang, and Doyle. The address is 422i7yAunugwqQq2vvahsT84dovNofLph1pfRar9zwpRvB6d.
The funds for this reimbursement proposal, if it is approved, will also be paid from this address.
Breakdown of Expenses
The financial specifics of our Polkadot Auction participation are as follows:
- Total DOT Spent: 35,500 DOT
- Equivalent in PHA: 2,371,323 PHA (based on a 7-day average price from CoinMarketCap, with DOT priced at $6.7733 and PHA at $0.1014)
Phala Network operates without a centralized foundation, which means that our public expenditures are supported through allocations from the Phala Treasury and Tokenomics. This decentralized approach to funding is why we are reaching out to our community for support in covering the Polkadot slot auction expenses.
We kindly ask for your support in this proposal. Your vote not only aids in reimbursing the costs associated with securing our network's future but also reinforces our collective commitment to Phala Network's growth and success.
Thank you for your continued support and belief in our vision. Together, we are building a more secure, private, and scalable decentralized web.
Please cast your vote and help shape the future of Phala Network.
This proposal should have been written before PHALA decided to borrow DOT from the proposer's company! Why didn't they go to auction with DOT from small investors?
Marvin always talks about decentralization, transparency, and this proposal is completely contrary! You're acting as if running a private company and trying to deceive us with such a proposal.
At the very least, the exchange rate itself is not consistent with the day when DOT was borrowed (once in Dec. '23, when 1 PHA was 0.022 DOT?).
This proposal has my strong NO and is a mockery to all other PHALA owners!!