Revolutionary Stake-to-Compute Model Takes the Stage with Phat Contract’s Latest Tokenomic Update

Phala Network
Phala Network
Published in
4 min readJun 3, 2023


Key Takeaways

  1. Phala adopts a stake-to-compute mechanism that enables developers to use Phala Network and Phat Contract’s decentralized off-chain infrastructure without paying any fees.
  2. There are two layers of tokenomics to meet consumers’ needs.
  • The first layer defines how much PHA developers should stake to get the computing service in one Cluster.
  • The second layer defines how to rent Workers from Phala to form a Cluster.

3. The first public-good Cluster was created by and is managed by Phala’s Council. Furthermore, in the near future, third parties will have the opportunity to create additional Clusters.

As Phat Contract’s launch is approaching, we are excited to unveil its tokenomics v0.9 to everyone. It is one of the cornerstones of our decentralized off-chain infrastructure and plays a foundational role in the Phala Network ecosystem. Before we finally experience Phat Contract on the mainnet, it is worth taking a few minutes to explore what happens behind the scenes: What does it mean if I decide to deploy an application on Phala through Phat Contract? Is it sustainable and stable? How do I pay for it? You can find these answers and more below.

Deploy once and enjoy continuous service

Finding sustainable services in the blockchain industry as a developer is not an easy feat. One of the primary challenges developers face is the requirement of constantly paying fees for services. For example, if you want to have continual service on Chainlink, you need to pay LINK for each Oracle query, and Gelato works in a similar way: you need to pay USDC to access the service. However, with Phat Contract’s stake-to-compute mechanism, you can have a worry-free experience. Once you deploy a Phat Contract and stake to it, you can enjoy continuous services throughout its entire lifecycle. If you decide to discontinue the service, you can easily unstake and retain possession of your tokens!

Phat Contract offers a simple deployment process based on its tokenomics. All you have to do is:
1. Write your own contract and compile it to WASM (start from here)

2. Upload the code to a specific cluster. Depending on the size of your contract, a storage fee will be charged: in the public good Cluster, the price is roughly 2 PHA for 1 KB. It is worth noting that you can create multiple contract instances with this code at no extra cost.

3. Create your contract, stake a minimum of 10 PHA (which you can withdraw at any time), and you can start up your service. On top of that, anyone can stake for your contract, including your dApp users, stakeholders, or anyone else! The more you stake, the more computing resources your contract will be allocated.

To incentivize developers to experience and use Phat Contract, we also have the Phala Builders Program which supplies funding, technical guidance, and marketing support for innovative projects seeking to build on Phala’s off-chain decentralized infrastructure.

Low Costs for Devs, High Utility for $PHA

Our novel tokenomics model, Stake-to-Compute, enables developers to rent computing power from Phala for free by staking $PHA. Phat Contract offers a unique way to augment smart contracts and avoids the issues of high gas-costs, custody problems, server maintenance, and centralization that often trouble Web3 startups.

This means that developers can form their own runtime environments with compute resources for specific Phat contracts (official term, Clusters) in a decentralized off-chain infrastructure without worrying about high fees or maintaining a server.

This also brings immense utility to PHA, enabling it to be applied in a wider dimension and feed back the entire Phala Network’s tokenomics. Moreover, the possibility to implement stake-to-compute has proven to be a sustainable way for both developers and end-users, driving sustainability for developers and end-users alike. The first layer allocates the whole network’s computing resources among different clusters, while the second layer allocates their computing power to different jobs that receive payment in PHA, fiat, and more.

To gain a comprehensive understanding of how tokenomics operate, please visit the Tokenomics paper. Additionally, stay tuned for further updates as we provide detailed breakdowns in our upcoming news releases.

About Phala

Phala Network is a decentralized off-chain compute infrastructure like no other. Phat contract, an off-chain programming model running on Phala Network, enables developers to build Dapps with omnichain compatibility, internet connectivity, and verifiable computation. These benefits will make your smart contracts even smarter and can be simply integrated via no-code or low-code developer experiences.

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