Following the migration of its GALA token to a brand new good contract deal with, Gala Video games has burned a sizeable proportion of the token’s whole provide.
As beforehand promised in its 2023 Imaginative and prescient Paper of the Gem program, it first burned 2 billion tokens. However then it burned an extra quantity – slightly below 4 billion tokens – which was the equal of all of the tokens Gala Video games had ever obtained in income.
After which in one other transfer, it burned 15 billion GALA tokens, which it labelled “nearly the entirely of our reserves”. On the time of burning, these nearly 21 billion tokens have been price round $660 million.
A remaining allocation of two billion tokens have been moved right into a multi-sig pockets, which can act as a strategic reserve. The utmost provide of the GALA tokens is listed as 50 billion.
In response, the worth of GALA was rose 13% however, extra usually, it has fallen 21% over the previous month.
Gala says this stunning transfer was to counter the view that it holding a considerable amount of tokens may very well be a “fundamental risk to the overall tokenomics of the project” when it comes to a “dump and exit scenario”.
Now, because it factors out, it – the central organisation – doesn’t have any tokens to dump. As a substitute, the long run issuance of GALA tokens can be accrued by homeowners of Gala’s nodes, and that is the one exercise by which Gala Video games itself will acquire extra tokens so its success is totally aligned with that of Gala’s node holders.
You’ll be able to learn the total clarification right here.
