Introduction to GALA
GALA Games is a decentralized gaming platform that is maintained, operated, and governed by a network of independent nodes. Approximately 36,000 nodes out of a finite supply of 50,000 have been sold.
The vision of GALA Games can be set out below.
- Decentralisation. The platform aims to be decentralised and controlled in a democratic fashion by the network of nodes, who vote on the direction of the platform, along with being the ones who are rewarded for the success of the gaming platform.
- Games developed on the platform will always have both a "free to play" and a "play to earn" element. In addition, each game will have its own eco system and in game currency, which will allow gamers to invest in a real-life economy.
- True ownership. Everything that a player buys, finds, or wins in game will truly belong to that player. This is achieved using NFTs (non-fungible tokens) and an agnostic approach to blockchain. To delve into the latter point: GALA games currently runs on Ethereum but will be launching its' own chain - "GALA chain” and will also be integrating with the upcoming Flare Networks blockchain. This will give gamers multiple options on where they would like to store their in-game items (NFTs). I am also suspecting that GALA Games will integrate with additional blockchains to further increase a gamer's choice and freedom.
- Vast number of Games. Currently there are five games officially lined up for deployment onto the GALA Games platform, however the long-term view is that the platform will be host to hundreds of games covering multiple genres targeting all types of gamers.
Current Rewards System Vs New Rewards System
Currently node owners are rewarded in the cryptocurrency $GALA providing their node is online for 6 hours during a 24-hour period. The daily reward of $GALA has been oscillating at around 400 - 450 GALA which equates to circa $40 per day/$1,200 per month. In addition, node owners are also rewarded $GALA if someone they refer purchases a node. However, earlier this week, GALA Games announced that there will be an upcoming vote regarding the current reward system. Before we tackle the new reward system, let us take a look at the current system.
Current GALA Distribution
The current daily GALA distribution is as follows.
Daily GALA released into circulation: 8,561,643
Points for operating a node: 1 point
Points for referring someone to purchase a node: 10 points
Points for referees who operate their node: 0.1 point
Give me an example?
Let us say on the 24th of October 2021, 20,000 points were earned by the network through node operating and node referrals. Let us assume Alice has received 1 point for operating her node, Bob received 1 point for operating his node, plus 10 points for a one-time referral bonus, and Clive received 1 point for operating his node, plus 0.2 points because his two referrals operated their node.
$Gala per point: 428 (8,561,643 /20,000)
Daily $GALA distributed to Alice: 428 (428 x 1 point)
Daily $GALA distributed to Bob: 4,708 (428 x 11 points)
Daily $GALA distributed to Clive: 514 (428 x 1.2 points)
Note - the ten points given to Bob are a one off, assuming he only has one referral and continues to operate his node, he will receive 1.1 points from tomorrow onwards.
Proposals to the Reward System
Due to a number of factors, there is a proposal to change the reward system and the following questions will be put forward to a vote by the node network.
(i) If every six hours results in one point in the daily distribution, how much should each subsequent six hours of stable connectivity be worth?
0 points (this is what is currently happening)
0.5 points
1 point
1.5 points
(ii) How much of a one-time referral bonus do you believe is fair for referring a node purchaser to the Gala Node Ecosystem?
0 points (this is what is currently happening)
5 points
10 points
15 points
(iii) How much of an ongoing referral bonus do you believe is fair for referring a node purchaser to the Gala Node Ecosystem?
0 points
0.5 points
1 point (this is what is currently happening)
1.5 points
(iv) If the node operators elect to continue the long-term ongoing referral bonuses, how many levels deep should this bonus extend?
1 level (this would be less than they extend currently, in other words to direct referrals only)
2 levels (the same distance as they currently extend, so to referrals of referrals) (this is what is currently happening)
3 levels (one more level than they currently extend — to referrals of referrals of referrals)
What is my opinion on the above?
The key role of a node is to support the network so that the games can be run on a decentralised reliable network. Therefore, eventually (when there are multiple games running on the network), there should be a strong incentive for node operators to provide as much uptime as possible hence more points for those who provide more than 6 hours uptime to the network. Having said this, right now, there are only two games on the platform, and it is inconceivable that these games need approx. 36,000 nodes providing uptime of 24 hours.
Referrals have been an integral part to growing the network, however there is an argument that the network is now large enough for the final 14,000 nodes to be sold through organic growth, hence maybe a reduction to the referral rewards is necessary. Therefore, I am undecided on how the referral system should work and need to have a deeper think.
So how will this change the current daily $GALA distribution?
In a nutshell, if the network values referrals, then this will be reflected in the vote (e.g., a vote will be passed to increase the one-off referral fee to 15 points). Consequently, going back to my previous example, Bob and Clive will benefit and receive more $GALA whereas Alice will receive less because she does not have any referrals. Conversely, if the node network does not think the referral scheme is no longer valued or needed, then Alice would benefit here with an uplift of daily $GALA, whereas Bob and Clive will lose out. I do not know how this vote will go, but it will be interesting to see the results, either way, I will of course be taking part in the vote!
Node prices
As with of all my GALA related articles, I like to provide an update on the numbers:
Nodes sold to date: 36,200
Nodes remaining: 13,800
Finite supply of nodes: 50,000
Current node price: $26k
Price increment: $500 for every 100 nodes sold
Final sale price of last 100 nodes: $95k
Current daily GALA distributed to node holders 400 GALA
Current price of GALA: $0.085
Daily reward: $34
Monthly reward: $1,020
Note - nodes can currently only be purchased directly from GALA Games. However, once the entire 50,000 nodes are sold, the intention (which is subject to regulatory approval) is to convert the nodes into NFTs allowing them to be traded on a secondary market in a trust less manner.
Interested in learning more about GALA Games, or owning a GALA node?
If you are interested in learning more about GALA Games, or owning a GALA node, I am providing my sign-up link here (sign up is free). Also, if you have any questions, please feel free to post them in the comments section below - I will try my best to answer them.