Phoenix Partners with Alchemy Pay to Accelerate Adoption, L2 Token Burn Mechanism
Today Phoenix is excited to announce a fiat onramp partnership with Alchemy Pay, the leading provider of crypto payment solutions, supporting over 100 fiat currencies and more than 300 global fiat payment channels. The partnership will enable rapid adoption of Phoenix’s platforms such as Computational Layer 2, data oracle, and other modules, by seamlessly directly integrating fiat onramps into the user interface, supporting credit card payments and local payment channels.
This makes it easy for enterprises and non-crypto users to utilize Phoenix’s blockchain services, and creating value for Phoenix’s token economy easily without having to create and manage a wallet, or having to manually buy PHB (native coin of Phoenix Layer 1) from exchanges. The entire process for the user is simplified to a few clicks, from payment to utilization of tokens, made possible via Alchemy Pay’s comprehensive API, which will be integrated into Phoenix’s user interface.
Other than for Layer 2 adoption, use cases of the fiat onramp also include:
- Faster and easier staking — for users specifically interested in acquiring PHB for staking, simplifies the process to directly paying via a gateway and staking through a simplified workflow.
- Data oracle — just like for the Layer 2 use case, enables enterprise users and non-crypto users to utilize our technology stack’s capabilities.
New Token Economics for Layer 2 — Locking & Burning Mechanism
Phoenix’s Layer 2 is a computational layer for scaling advanced analytics, multi-party computation (MPC), and blockchain-enabled AI for Web 3 apps that require data-driven, predictive analytics, and machine learning capabilities. The Alchemy Pay partnership combined with a new token economics mechanism serves as a game changer for the Phoenix Ecosystem.
Layer 2 Computation Credits (CCD)
PHB is required to utilize any services on the Phoenix blockchain platform, and in this case the Layer 2. Currently Phoenix Layer 2 is in Testnet (see https://phoenixglobal.medium.com/phoenix-computational-layer-2-testnet-release-946c73adbb46). Upon Layer 2 Mainnet Release, in order to use the service, the user will need to acquire CCD (Computation Credits). CCD on the blockchain will be a token that will be minted on the Phoenix Blockchain Mainnet (already live).
There will be two ways to acquire L2 Computation Credits (CCD):
- For crypto users — PHB swap to CCD mechanism. An algorithm will determine the PHB/CCD rate swap.
- For enterprise & non-crypto users — easy purchase of PHB using fiat gateway and auto conversion to CCD managed via an account system (no crypto wallet required).
PHB Locking and Burning Mechanism
Regardless of which route the user uses to acquire CCD (swap or fiat gateway), PHB is required and must be acquired as the precursor. Both methods will utilize the same algorithm to determine exchange rate for the PHB to CCD swap.
After converting to CCD, the PHB will be locked within the contract and that supply will be burned every week as a result of built-in mechanism. The more users, the more computations occurring on Phoenix Layer 2, the more PHB will be burned, permanently! This will ensure Layer 2 has significant benefits for the token economy of Phoenix’s Ecosystem.
Simplified visual workflow explains our Layer 2 Lock & Burn Mechanism, where Layer 2 usage decreases PHB supply permanently! More token economy upgrades to come.
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