Gala Games Burns Over $600 Million Worth of GALA Tokens to Address Concerns

Gala Games, a prominent Web3 startup, has recently made headlines by burning a significant portion of its GALA tokens from its own reserves.

May 19, 2023
by Anvi Saini
Gala Games Burns Over $600 Million Worth of GALA Tokens to Address Concerns
News

Gala Games has taken this proactive step to ensure the stability and sustainability of its ecosystem in order to alleviate concerns about a potential token selloff.

Burning a Token to Address Concerns:

Gala Games announced that after completing its V2 token airdrop, it burned approximately 21 billion GALA tokens, worth more than $600 million. To alleviate concerns about a "dump and exit" scenario, the company decided to remove these tokens from its reserves. Gala Games hopes to instil confidence in token holders and prevent any potential negative impact on token prices by eliminating a significant amount of GALA tokens.

The Gala Games team explained in a blog post that the burned tokens were initially acquired as ecosystem rewards over time. While these tokens were intended to help the ecosystem grow, the company acknowledged that some people saw them as a risk to the project's overall tokenomics. Gala Games intends to address community concerns and demonstrate its commitment to a healthy token economy by conducting the token burn.

The burning process was carried out in stages. Gala Games intended to burn 2 billion GALA tokens as part of its "2023 Vision Paper." Furthermore, 3.96 billion tokens were burned, representing the company's total revenue in GALA ever received. The largest burn involved the destruction of 15 billion tokens in response to community concerns about a potential selloff. Gala Games emphasized the transparency of the burn process, providing proof in the form of on-chain Ethereum network transactions.

Gala Games' President of Blockchain, Jason Brink, emphasized the company's forward-thinking approach to token burning. According to Brink, a sustainable ecosystem necessitates the ability to rely on rewards from the ecosystem itself rather than having a large reserve of GALA tokens readily available. The burn not only ensures Gala Games' long-term viability, but also affects the rewards for Founders Node operators, which are expected to quadruple.

Conclusion:

The decision by Gala Games to burn over $600 million in GALA tokens demonstrates the company's commitment to addressing community concerns and maintaining a healthy token economy. By removing a significant portion of its reserves, the company hopes to reduce the risk of a token selloff and stabilize the value of the GALA token. This move is also consistent with Gala Games' vision of a sustainable ecosystem based on the rewards generated within it. The burn serves as a testament to Gala Games' commitment to long-term success and community trust as the company develops and expands its Web3 gaming offerings.

Disclaimer: The information provided on this page do not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Individuals should do their own research before taking any actions related to the product they read about and carry full responsibility for their decisions.
We have sent you an email, please confirm!


News Filter
Play Games Now
Galaxy Fight Club
Galaxy Fight Club
illuvium
illuvium
Gods Unchained
Gods Unchained