Burning for long-term growth | Say goodbye to billions of tokens | Gala Games | February 2024

Remember when Gala burned nearly $21 billion worth of GALA to benefit the ecosystem and demonstrate our commitment to long-term sustainability?

As web3’s first anonymous ancestor showed us with his revolutionary Bitcoin whitepaper on October 31, 2008, supply matters in the world of digital currencies. Satoshi Nakamoto is still considered one of the greatest creators and top innovators in the web3 world, even after more than 15 years of blockchain evolution that has resulted in over a thousand different blockchains and tens of thousands of different altcoins. This is because he outlined and explained the most important aspects of a successful peer-to-peer digital currency.

For Bitcoin, this year is the halving, which means block production rewards for miners are cut in half. Technically, this halving occurs every 210,000 blocks. The April 2024 halving is the fourth Bitcoin halving, which will occur once a total of 840,000 blocks have been created on the blockchain.

The supply of $GALA, the gas and utility token for the fast-growing GalaChain ecosystem, is regulated in a completely different way. However, similar to BTC, the goal is to ensure long-term sustainability as the token and its ecosystem grow. Additionally, similar to the Bitcoin blockchain, GALA bisector Although mechanical, the half-life is dynamic based on totalSupply, not block height. The recently released Gala Ecosystem Blueprint notes: (Please refer to the corresponding article for more details.)

“The maximum total supply limit for $GALA is set at 50 billion tokens. The daily emission rate of $GALA is dynamically adjusted according to circulating supply. This circulating supply may decrease if $GALA is used as gas within the Gala ecosystem or spent on ecosystem-supporting activities, such as purchasing certain NFTs.

The current emission rate of $GALA is determined by a variable daily emission formula that takes into account the total supply of $GALA on the blockchain. Increasing totalSupply (representing more $GALA emitted than burned) reduces the emission rate. Conversely, the halving event is automatically triggered when certain milestones in totalSupply are achieved.

If total supply falls below the half-point previously reached, emission rates can increase to match demand. This interplay between emissions rate adjustments and totalSupply reductions creates a dynamic and responsive supply system. “This system not only ensures long-term ecosystem rewards for Founders Nodes, who play a critical role in supporting the ecosystem, but also has a balancing effect on total supply, putting downward pressure on the quantity of tokens in circulation.”

In mid-May 2023, Gala’s leaders made a powerful decision. In a massive commitment to community trust, a total of $620 million worth of GALA was burned from company-owned wallets, and a new vision was laid out for regulating the future supply of ecosystem tokens.

In this blog you can find detailed information about the event from the time it occurred. Essentially, this big $GALA bonfire went hand in hand with a pledge to the community that we would be together for the long haul. There are too many untrustworthy characters in this space who have betrayed the community’s trust, and we couldn’t allow our beloved community to remain uncertain about our loyalties.

With the annual GALA Founder’s Rewards halving approaching soon, based on $GALA’s previous supply tokenomics, we have implemented the new dynamic supply base halving described above at a time when Founder’s Node rewards are increasing rather than decreasing. .

At the same time, we committed to a new primary purpose for the GALA token as a gas token for the ecosystem. Whenever GALA is used as gas on the blockchain, it is burned on totalSupply.

Please keep in mind that we are just starting to bring external developers onto GalaChain and are finally poised to achieve tremendous growth. While GalaChain’s number of projects and products is set to grow, the number of founder nodes (up to 50,000) will not increase, nor will GALA’s maximum supply (up to 50 billion). As you know, we’ve been busy releasing tools to make it easier than ever for new developers to join our ecosystem and develop their own projects in the versatile L1.

It may seem like a long journey backwards for early adopters, but we’re here to remind you that the work is just beginning. Before you know it, we will be the world’s first billion-user blockchain, and that’s just one chapter in the story. Thank you for your participation in this adventure.