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Head-mounted holographic displays (HMHD) are projected to be the first commercial realization of holographic video display systems. HMHDs use liquid crystal on silicon (LCoS) spatial light modulators (SLM), which are best suited to display phase-only holograms (POH). The performance/watt requirement of a monochrome, 60 fps Full HD, 2-eye, POH HMHD system is about 10 TFLOPS/W, which is orders of magnitude higher than that is achievable by commercially available mobile processors. To mitigate this compute power constraint, display-ready POHs shall be generated on a nearby server and sent to the HMHD in compressed form over a wireless link. This paper discusses design of a feasible HMHD-based augmented reality system, focusing on compression requirements and per-pixel rate-distortion trade-off for transmission of display-ready POH from the server to HMHD. Since the decoder in the HMHD needs to operate on low power, only coding methods that have low-power decoder implementation are considered. Effects of 2D phase unwrapping and flat quantization on compression performance are also reported. We next propose a versatile PCM-POH codec with progressive quantization that can adapt to SLM-dynamic-range and available bitrate, and features per-pixel rate-distortion control to achieve acceptable POH quality at target rates of 60-200 Mbit/s that can be reliably achieved by current wireless technologies. Our results demonstrate feasibility of realizing a low-power, quality-ensured, multi-user, interactive HMHD augmented reality system with commercially available components using the proposed adaptive compression of display-ready POH with light-weight decoding.