TL;DR:
- Gala Games has burned almost 21 billion GALA tokens, valued at over $637 million, from its own reserves to address concerns of a potential token selloff.
- The burn aims to alleviate worries among token holders about a decline in token price and ensure the long-term sustainability of Gala Games’ ecosystem.
- The burn significantly reduces Gala’s token treasury, and rewards for Founders Node operators are expected to increase as a result.
Gala Games, the publisher behind popular Web3 games like Mirandus, Grit, and The Walking Dead: Empires, has conducted a significant token burn to address concerns and sustain its ecosystem. By burning almost 21 billion GALA tokens, valued at over $637 million, Gala Games aims to alleviate worries among token holders about a potential token selloff that could result in a decline in token price.
The token burn, which was conducted after completing the V2 token airdrop, represents Gala Games’ commitment to the long-term sustainability of its ecosystem. The company acknowledges that the tokens held in its reserves were meant for ecosystem growth and curation but understands that some stakeholders perceive them as a risk to the project’s tokenomics.
Gala Games believes that the token burn will eliminate the perception of a large GALA token treasury that could be accessed at any time. By reducing the token supply, Gala Games aims to create a more stable and sustainable environment for its ecosystem and reassure token holders about the company’s commitment to their interests.
The burn has significantly reduced Gala’s own treasury, bringing it to a point of almost complete elimination. This strategic move aligns with Gala Games’ vision of living off the rewards received from the ecosystem rather than relying on a substantial GALA token reserve. The reduced treasury also has a positive impact on rewards for Founders Node operators, who will experience an increase of approximately four times due to the supply-based halving.
The token burn has garnered attention as nearly 160,000 different wallets received upgraded tokens. Gala Games is finalizing the contract upgrade and deprecating its old token, ensuring a smooth transition for token holders. However, it’s worth noting that major U.S. crypto exchange Coinbase has publicly announced that it will not support or facilitate the Gala V2 airdrop, without providing a specific reason.
In conclusion, Gala Games’ token burn of almost 21 billion GALA tokens demonstrates the company’s commitment to addressing concerns about a potential token selloff and ensuring the long-term sustainability of its ecosystem. By reducing its token treasury and increasing rewards for Founders Node operators, Gala Games aims to create a more stable environment for token holders. The upgraded tokens received by nearly 160,000 wallets further solidify Gala Games’ commitment to improving its ecosystem.
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Please note that the information provided should not be considered as legal or financial advice