Phase 1 originally intended to distribute to 20,000 users.

The method of distribution was far too taxing on the community volunteers who had to spend all of their free time making the ICO happen. It was inefficient, so that phase ended.

The project creator devised a way to utilize the AI protocol that maintains the network to run the ICO instead. This is when phase 2 started. It allows for a lot more participating members than the previous model.