Gala burns 42% of token supply to steelman future

Following the migration of its GALA token to a new smart contract address, Gala Games has burned a sizeable proportion of the token’s total supply.

As previously promised in its 2023 Vision Paper of the Gem program, it first burned 2 billion tokens. But then it burned a further amount – just under 4 billion tokens – which was the equivalent of all the tokens Gala Games had ever received in revenue.

And then in another move, it burned 15 billion GALA tokens, which it labelled “nearly the entirely of our reserves”. At the time of burning, these almost 21 billion tokens were worth around $660 million.

A final allocation of 2 billion tokens were moved into a multi-sig wallet, which will act as a strategic reserve. The maximum supply of the GALA tokens is listed as 50 billion.

In response, the price of GALA was rose 13% but, more generally, it has fallen 21% over the past month.

Gala says this surprising move was to counter the view that it holding a large amount of tokens could be a “fundamental risk to the overall tokenomics of the project” in terms of a “dump and exit scenario”.

Now, as it points out, it – the central organisation – doesn’t have any tokens to dump. Instead, the future issuance of GALA tokens will be accumulated by owners of Gala’s nodes, and this is the only activity by which Gala Games itself will gain more tokens so its success is fully aligned with that of Gala’s node holders.

You can read the full explanation here.

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