Following the migration of its GALA token to a brand new good contract tackle, Gala Video games has burned a sizeable proportion of the token’s complete 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 additional quantity – just below 4 billion tokens – which was the equal of all of the tokens Gala Video games had ever acquired in income.
After which in one other transfer, it burned 15 billion GALA tokens, which it labelled “almost the totally of our reserves”. On the time of burning, these virtually 21 billion tokens had been price round $660 million.
A remaining allocation of two billion tokens had 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 typically, 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 might be a “elementary danger to the general tokenomics of the mission” when it comes to a “dump and exit situation”.
Now, because it factors out, it – the central organisation – doesn’t have any tokens to dump. As a substitute, the longer term issuance of GALA tokens shall be gathered by house owners 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 may learn the complete rationalization right here.