$600 Million Worth of GALA Tokens Burned: Here's What You Need To Know
Gala Games created a stir this week when it revealed that it had abolished about 21 billion GALA tokens, which is said to be worth about $637 million of its asset reserves after it accomplished its V2 token airdrop. This decision was made to subside any fears related to the possibility of something known as a “dump and exit” disaster. The Gala Games squad declared on their blog publication that: “It was always our objective to utilize these tokens to cultivate and curate our platform. Notwithstanding this, we are aware that some individuals may view those resources as a hazard to the project’s tokenomics.” It seems like Gala Games is taking precautionary steps to protect its ecosystem and to ensure a bright future for the project.
To assuage the fears of GALA owners, Gala Games has declared a token burn---which entails two billion tokens according to the stipulations of the "2023 Vision Paper" plus 3.96 billion tokens that reflect the company's entire revenue---with the hopes that it will discourage widespread token sales causing a devaluation. This move is made to allay the anxieties of GALA owners and to sustain the token's worth in the crypto marketplace.
Gala addressed the fears of the public of an exit-scenario by destroying 15 billion tokens that spelled out to an estimated $660 million in ETH blockchain equivalents. According to analytics by CoinGecko, the original value of these tokens was estimated to be in the ballpark of $637 million before the burn. In a statement released by Jason Brink, President of Blockchain, he addressed that the company had put into perspective the long-term future when deciding to eliminate these tokens; tokens that came from Web3 games such as Mirandus, Grit, and The Walking Dead: Empires.
At a fundamental level, it's essential to ensure the sustainability of the natural environment before benefiting from the planet's ecosystem. Quite to the contrary of having access to a plentiful amount of Gala in all situations, Brink's words signify that conserving Gala is now essential. The chief executive additionally emphasized that Gala's own reserve is “virtually annihilated” following the burn. To reward those who are employed to manage the Gala hubs that verify the blockchain's process flow, stated Brink, salaries will amplify with a magnitude of about four times, due to the halving of supplies.
On Wednesday, Brink presented data detailing that well over 160,000 individual wallets have gotten ahold of the recent tokens in the wake of the company's effort to validate and retire the previous token. This announcement disclosed that Gala is currently releasing new GALA “V2” tokens to the owners of GALA “V1” tokens. Such movement was due to the implementation of several new technical functions following the issuing of the new token. In response to this news, one of America's top crypto-asset exchanges, Coinbase, declared its refusal to be involved in, take the responsibility for, or support Gala's V2 delivery-to-many -- without giving any reasons why.
