{"schema_version":2,"updated":"2026-10-24T07:57:30.357Z","license":"https://creativecommons.org/licenses/by/4.0/","cite_as":"Own Your Mind, \"Decentralised AI Freedom and Returns score dataset\", https://ownyourmind.ai/integrity/","attribution":"Own Your Mind (ownyourmind.ai). Link the specific project review when citing a single project.","integrity_notice":{"summary":"Each integrity record carries its own record_type, verdict and assessment_level. A 'claim' record quotes the project's own published statement; a 'reported' value is that claim, not a verified fact, unless verdict is 'match'. A 'finding' record is our own measurement and grades no one's claim. assessment_level 'not-assessed' means unchecked, never clean. Findings are dated snapshots, not a live feed.","verdicts":{"match":"verified against independent data","inflated":"reported higher than independent data shows","understated":"reported lower than independent data shows","outdated":"was accurate when reported; on-chain reality has since moved","established":"our own independent measurement; there is no project claim to grade","unverified":"independently checkable, not yet checked","unverifiable":"checked, could not independently confirm"},"record_types":{"claim":"the project's own published statement, quoted verbatim, graded against independent data","finding":"our own measurement for a score dimension; no claimant and never a verdict on a claim"},"methodology":"https://ownyourmind.ai/resources/integrity-checks/"},"slug":"phala","markdown":"https://ownyourmind.ai/projects/phala.md","title":"Phala Network","token":"PHA","category":"compute","freedomScore":5.5,"returnsScore":5.2,"freedomGrade":"C","returnsGrade":"D","url":"https://ownyourmind.ai/projects/phala/","integrity":{"assessment_level":"api","last_assessed":"2026-09-23","emission_honesty":null,"reconciliations":[{"metric":"max_supply_fixed","assessment_level":"api","record_type":"claim","verdict":"match","claim_holds_up":true,"claim":{"quote":"Phala maintains a fixed total token supply of: 1,000,000,000 PHA (1 billion PHA)","source_url":"https://docs.phala.com/network/compute-providers/introduction","archive_url":null,"date":null},"reported":{"value":"1,000,000,000 PHA fixed total supply","source":"Phala docs, Compute Providers introduction","self_reported":null},"independent":{"value":"Fixed on the canonical Ethereum contract. PHAToken (0x6c5b...2f4e, non-proxy, Solidity 0.5.16) mints its entire supply once in the constructor (_mint(msg.sender, initialSupply)) and exposes no external or public mint function (_mint is internal, called only by the constructor). Live on-chain totalSupply = 1,000,000,000e18 exactly. The Ethereum ERC-20 carries the full canonical 1B: bridged Phala/Khala parachain PHA is lock-and-mint against Ethereum custody, consistent with the ~47% infra share on the Ethereum holder list. No dilution path exists on the contract.","source":"eth_call totalSupply() on 0x6c5ba91642f10282b576d91922ae6448c9d52f4e + Etherscan-verified PHAToken source (non-proxy), read 2026-08-12"},"assessed_date":"2026-09-23","severity":"info"},{"metric":"token_admin_surface","assessment_level":"api","record_type":"finding","verdict":"established","claim_holds_up":false,"finding":"The PHA token is pausable by a single un-renounced deployer EOA, and a pause freezes every holder except the owner.","independent":{"value":"The PHAToken ERC-20 is PAUSABLE and this is a strong lever: transfer/approve/increaseAllowance/decreaseAllowance all carry an onlyOwnerOrNotPaused modifier, so when paused EVERY holder except the owner is frozen (the owner retains transfer ability). pause()/unpause() are gated to PauserRole. Live state: paused()=false (not currently paused), owner()=0xb7687a5a3e7b49522705833bf7d5baf18aabdd2d, which is an EXTERNALLY-OWNED ACCOUNT (no code) that is also the original contract deployer, holds the PauserRole (isPauser(owner)=true) and has NOT renounced ownership. There is no per-address blacklist and no fee/transfer tax. So the token-layer lever is a global owner-carve-out pause held by a single un-renounced deployer EOA.","source":"eth_call owner()/paused()/isPauser() on 0x6c5b...2f4e + eth_getCode on the owner + Etherscan-verified source (Pausable + onlyOwnerOrNotPaused, no blacklist/fee), read 2026-08-12"},"assessed_date":"2026-09-23","severity":"info"},{"metric":"open_source_footprint","assessment_level":"api","record_type":"finding","verdict":"established","claim_holds_up":false,"finding":"Phala's core monorepo is public under Apache-2.0, but most of its own repositories carry no licence file or have gone quiet.","independent":{"value":"Re-read 2026-09-18 through the GitHub API: 205 non-fork public repositories in github.com/Phala-Network (307 public in total, 102 of them forks), 140 with no licence file and 167 not pushed in 180 days. The core monorepo Phala-Network/phala-blockchain is Apache-2.0 and not archived, covering the Substrate node, the pRuntime TEE worker and Phat-contract tooling.","source":"GitHub REST API (orgs/Phala-Network/repos), re-read 2026-09-18"},"assessed_date":"2026-09-23","severity":"info"},{"metric":"l2_addresses","assessment_level":"api","record_type":"finding","verdict":"unverifiable","claim_holds_up":false,"finding":"No public source now reports cumulative addresses on Phala's Ethereum L2, so on-chain adoption there cannot be measured.","independent":{"value":null,"source":"No source exists to check. The Blockscout instance that served the stats path was replaced by a Conduit-hosted app exposing only a JSON-RPC proxy and hashed endpoints that change every deploy, and no third-party indexer covers chain 2035 (Routescan answers BLOCKCHAIN_NOTFOUND). A cumulative unique-address count is an indexer aggregate, not an RPC call, so the surviving endpoint cannot supply it. Verified absent 2026-08-14."},"assessed_date":"2026-09-23","severity":"low"},{"metric":"liquidity_depth","assessment_level":"api","record_type":"finding","verdict":"established","claim_holds_up":false,"finding":"PHA trades briskly across many venues, though Coinbase and Bybit spot do not list it.","independent":{"value":"Binance, OKX and Kraken quote PHA across 52 tickers on 43 venues, but Coinbase returns NotFound for both PHA-USD and PHA-USDC, and Bybit spot returns no PHAUSDT instrument. Turnover is a 34.62% 7-day median, so about a third of the market cap changes hands daily. The book is not led by the majors: LBank tops it at 20.6% and Binance sits third at 11.8%.","source":"CoinGecko tickers (paginated) + turnover from src/data/turnover.json, read 2026-09-06"},"assessed_date":"2026-09-23","severity":"high"},{"metric":"holder_concentration","assessment_level":"api","record_type":"finding","verdict":"established","claim_holds_up":false,"finding":"PHA is broadly distributed once exchange custody is set aside, and nine of the top ten holders carry explorer labels.","independent":{"value":"Infra-excluded top-10 is 21.57% across 37,437 holders, and half the raw top-10 is exchange custody rather than private holding. Binance hot wallets hold 27.93% between two addresses, OKX, Gate.io, Kraken and Bitvavo a further 9.28%, and the Phala Vault 13.46%. Insider share of the top ten is 17.14%, in two Safes at 14.88% and 2.26%. Only one of the top ten carries no label.","source":"Ethereum Blockscout token-holders index via scripts/refresh-holder-concentration.py, classified by coldstart.sources.holders, read 2026-09-06"},"assessed_date":"2026-09-23","severity":"info"},{"metric":"snapshot_governance_activity","assessment_level":"api","record_type":"finding","verdict":"established","claim_holds_up":false,"finding":"Phala's Snapshot space is live but barely used: turnout is in single digits, and one proposal resolved with no votes cast.","independent":{"value":"The space is current and almost empty. Four proposals since December 2025, the most recent closing on 21 August 2026, with turnout of 7, 3, 0 and 2 voters. One closed with no votes cast and still resolved. The consequential one transferred the treasury to Phala Ltd. as a mandate-limited operating vehicle, and it passed on three voters with none against. Read at the venue: the space's own declared website is https://phala.com/, which is how it is bound to the project rather than by name.","source":"Snapshot Hub GraphQL (hub.snapshot.org/graphql), space phala-network.eth, read 2026-09-06"},"assessed_date":"2026-09-23","severity":"medium"},{"metric":"onchain_revenue","assessment_level":"api","record_type":"finding","verdict":"established","claim_holds_up":false,"finding":"Phala's Ethereum L2 has collected almost no fees in its lifetime: every block sampled carries only the protocol's own system transaction.","independent":{"value":"The L2 fee surface exists, is keyless, and reads essentially zero. Re-read 2026-10-13 at block 5,746,516: the three vaults hold 0.006439 (L1FeeVault), 0.000990 (SequencerFeeVault) and 0.000000 (BaseFeeVault), a lifetime total of 0.007429, and totalProcessed() still reads 0 on all three. The 2026-09-21 measurement follows. Phala's Ethereum L2 (chain 2035) is an OP-Stack chain, so its fee accounting sits in three predeploy vaults, and on 2026-09-21 at block 5,559,451 they hold 0.005828 (L1FeeVault), 0.000968 (SequencerFeeVault) and 0.000000 (BaseFeeVault), a lifetime total of 0.006797 in the L2 gas coin. That is a complete measurement rather than a sample: totalProcessed() reads 0 on all three, so nothing has ever been withdrawn and the balance IS the lifetime take. The reason is visible in the blocks. Every block sampled across the chain's history (10%, 25%, 50%, 75%, 90% and the tip) contains exactly one transaction, and in each case it is the OP-Stack L1Block attributes deposit (type 0x7e, to the 0x...4200000000000000000000000000000000000015 predeploy), which the protocol inserts itself. Base fee at the tip is 252 wei. So the chain has been producing 10-second blocks for 5.56M blocks while carrying no user traffic at the points measured. Token Terminal's Phala series is confirmed to be the retired parachain and not this chain: its project record lists chains [phala, polkadot] and its statement ends 2025-11-18.","source":"eth_getBalance and eth_call totalProcessed() on the three OP-Stack fee-vault predeploys, plus eth_getBlockByNumber sampling and eth_getCode controls, all over https://rpc.phala.network (chain 2035), read 2026-09-21; Token Terminal project coverage from the keyless __NEXT_DATA__ on tokenterminal.com/explorer/projects/phala"},"assessed_date":"2026-09-23","severity":"medium"}],"facts":[{"metric":"onchain_revenue_coverage","assessment_level":"api","kind":"measured","flag":"stale-cache","positive_control":false,"severity":"medium","detail":"Token Terminal s only Phala revenue data is the legacy Polkadot parachain, frozen at sunset (latest Nov 18 2025). No independent source covers the current Ethereum L2 (DeFiLlama has no Phala adapter either).","assessed_date":"2026-06-12"}]}}