Phala Network Abandons Polkadot for Exclusive Ethereum Focus

Phala Network has announced its decision to migrate from Polkadot to an Ethereum layer-2 network. This move marks a strategic shift towards leveraging Ethereum's ecosystem for confidential AI and GPU compute services.

The proposal passed with the support of Phala token holders, who will receive a new ERC-20 variant at a 1:1 ratio while staking, rewards, and governance functions continue seamlessly on the new infrastructure.

Phala already launched an Ethereum L2 in January but maintained its Polkadot presence until now. The proposal argues that full migration and exclusive focus on Ethereum will maximize potential upside and reduce operational overhead.