Gala Games
Gala Games is a play-to-earn (P2E) gaming platform founded by Eric Schiermeyer, Wright Thurston, and Michael McCarthy in 2019. The platform integrates blockchain technology with decentralized video games, enabling players to streamline gaming processes. Initially designed for gaming, Gala Games expanded into music and film to empower artists, reward fans, and build a decentralized ecosystem. [28][29][30][31]
Overview
Gala Games is a blockchain gaming platform developed to combine P2E mechanics, non-fungible tokens (NFTs), and decentralized finance (DeFi) into "fun games that players actually want to play." Its prominent element is the Gala Nodes, which play a pivotal role in determining the games integrated into the ecosystem. The first nodes released were the founder nodes, and node operators receive rewards in the form of GALA tokens, the platform's digital utility currency. Initially, Gala Games operated on the Ethereum blockchain. However, the platform has been transitioning to GalaChain, its proprietary L1 blockchain, to enhance transaction speed and scalability. [3][4][5]
History
Eric Schiermeyer collaborated with Michael McCarthy and Wright Thurston to create the Gala Games in 2019. Gala Games' in-game assets are NFTs, which range in utility from cosmetic changes to a playable character to owning an in-game character. Its utility token, GALA, serves as a secure and convenient means of payment and settlement for participants engaged in interactions within the Gala Games and Entertainment ecosystem. At the initial release of GALA, the community independently established the UniSwap ETH/GALA liquidity pool. However, the Gala Games team set up additional liquidity providers such as SushiSwap, 1inch, Aave, Bancor, BurgerSwap, and Balancer to maintain a balanced and decentralized system for GALA. [32][33][34]
In November 2020, Gala introduced the "mint on demand" feature on the gaming platform, allowing users to mint their GALA and NFTs. In December 2021, when Galaverse, an immersive event for the Gala Games community, was held in Las Vegas, over 500 people attended, causing industry leaders to announce their partnership with Gala Games. [34][35]
On May 15th, 2023, the Gala network was upgraded, and a new token, GALA v2, was distributed at a 1:1 ratio to all GALA v1 holders. The aim of the upgrade is to enhance Gala's security and introduce burn mechanisms, potentially increasing the tokens' value in the future. A few days after the upgrade, Gala burned over $600 million worth of GALA tokens. The team believed that the significant token burn would help alleviate concerns among holders worried about the company selling off large quantities of its tokens, a move that could lead to a price decline. In June 2023, the platform relaunched its web3 and gifted a Cat Box NFT, which can be minted to every Gala Games account holder who logged in during that period. [36][37][38][39]
In August 2023, a legal dispute occurred between Gala Games co-founders Eric Schiermeyer and Wright Thurston. Schiermeyer filed a lawsuit against Thurston and his investment company, True North United, on the grounds of theft, claiming he stole $130 million worth of GALA tokens. Thurston retaliated by countersuing Schiermeyer, alleging that he borrowed millions of Gala funds for personal purchases, sparking financial misconduct allegations. As regards the ongoing dispute, Gala Games released an official statement to its community members, explaining that the dispute is between the founders and doesn't, in any way, involve the company as a whole. [40][47][48]
Gala Nodes
Gala Nodes is a node system managed by users using their personal computers. By contributing to the network, node operators are rewarded with GALA tokens, exclusive NFTs, and other various assets. Several Gala Nodes govern the gaming platform, including Founder Nodes, Game Nodes, Player Nodes, Film Nodes, REP Nodes, and Music Nodes. [17]
Founder's Nodes
Founder Nodes power the blockchain of the Gala Node ecosystem by providing security to the Gala network. Only 50,000 of these nodes exist, and they are owned and operated by users, allowing them to vote on projects using the GALA token. Every individual operating a Founder Node contributes to the expansion of Gala Games' decentralized gaming network. Through running a Founder Node, operators actively empower players with genuine ownership of their assets and content. [18][19][20][41]
Operators of Founder Nodes also have the chance to participate in crucial ecosystem decisions through Gala Games' Node software. Furthermore, a segment of each NFT minted within the gaming ecosystem might be randomly granted to engaged Founder Node operators. [42]
Game Nodes
Game Nodes play a crucial role in sustaining specific game ecosystems, ensuring their proper functioning. Furthermore, individuals hosting gaming servers might receive special privileges and benefits based on the games they support. These perks may involve inviting other players and earning NFTs. [19][10][21]
The team has introduced the Town Star Node Recognition Award Program to reward node operators. This program aims to balance the scales for those who purchased nodes at higher prices by aligning node ownership with a standard purchase price of $1,000 per node. [51]
Nodes are set to play a vital role in guild interactions and community growth, host various "bot" characters from Town Star's early days (excluding Crane Bots, which remained in-game items), and provide exclusive access to the CGW guild interface. This access allows node operators to list NFTs in a guild library for members. Additionally, operators receive special buffs and unique power drops to benefit themselves and their guild members. [51]
A new mechanism, DIRT (a streak-tracking soft token), is used to address concerns about nodes operating without reward. DIRT tracks and rewards consistent node operation, reflecting a node’s reliability and efficiency, and serves as a foundation for future on-chain distributions, encouraging operators to maintain optimal uptime. [51]
Player Nodes
Player nodes are essential components in decentralized networks like Gala Music, helping to host and distribute content. Gala Music introduced Jukebox Nodes as part of the DePIN (Decentralized Physical Infrastructure Network) framework. [52]
By operating a Jukebox Node, individuals participate directly in the Gala Music ecosystem. These operators enhance music accessibility and distribution and can earn $MUSIC rewards for their contribution, ensuring the network remains robust and efficient. [52]
To generate $MUSIC rewards based on platform plays, NFT tracks must be paired with an active Jukebox Node. Pairing is initiated by the track owner, who can choose to pair with a specific Jukebox Node. This pairing hosts the track on decentralized Gala Music servers, making it accessible to listeners and eligible for reward distribution based on plays. [52]
Each Jukebox Node has a limited number of slots for track NFTs. A standard Jukebox Node starts with 10 slots, but operators can purchase upgrades to add more slots, thereby increasing the potential $MUSIC rewards generated for hosting tracks on that node. [52]
Film Nodes
Film Nodes are the foundation of Gala’s decentralized entertainment ecosystem. They support the film network by hosting entertainment and film experiences, just as seen in Player Nodes. Users who own and operate a Film Node license can support content across Gala Film while receiving rewards for their contribution. [22][22]
REP Nodes
GalaChain integration significantly enhances the REP Node Infrastructure, expanding its capabilities and enabling support for a larger and more diverse network. Utilizing the InterPlanetary File System (IPFS), REP Nodes decentralize content hosting, distributing data across multiple network nodes. Within this framework, Gala Games Founder Nodes play a vital role in providing long-term support for GalaChain. They not only bolster the REP network but also contribute to decentralization, enhancing content distribution and network resilience. This collaborative infrastructure, merging the strengths of both REP Nodes and Gala Games Founder Nodes, underscores REP's dedication to a decentralized, secure, and user-centric social media experience. By harnessing this synergy, REP users can enjoy an unparalleled level of freedom and security in their online interactions. [43]
Tokenomics
Daily, GALA is logged in a distribution ledger for those who fulfill the requirements to earn distribution points. This utility token enables individuals to acquire NFTs and buy licenses for nodes, such as Founder Nodes, at the Gala Games store. Users, having full autonomy over GALA's usage, can transfer the token to others [44][45]
Funding
On September 11, 2020, emissions of GALA to the founder nodes were initiated without any preceding token sale or pre-minting phase. The project was exclusively self-funded, eschewing traditional investment rounds. [44]
Token Allocation
GALA tokens are minted and then dispensed as rewards to Gala Games Founder Node operators. These rewards are split equally: half is allocated to Founder Node Operators, and the other half is reserved for the Gala Conservatorship. [44]
Token Supply
The total supply of GALA is limited to 50 billion. Its daily emission depends on the current circulating supply. The ongoing GALA emission rate operates on a fluctuating daily rate determined by the total amount of GALA on the blockchain. Should the total supply increase – in cases where GALA production surpasses its usage – the emission quantity is scaled down. These dynamics balance each other out, cultivating a flexible supply system. This not only ensures sustainable rewards for Founder Nodes, bolstering their continual support but also caps the total supply, inducing a decrease in circulating tokens.[44]
The Gala Games team holds around 2 billion GALA in reserve. On May 15th, 2023, Gala Games burned about 20.9 billion tokens from the total supply, encompassing all earnings received in GALA and almost all reserved GALA that had been given as Founder Node rewards. The token burn was estimated at around $660 million during that period and signifies a renewed dedication to transparency and sustainability within the Gala Games community.[44]
GalaChain
GalaChain, specifically designed to handle the required transaction volume for the growth and development of games, guarantees transparent and verifiable ownership for token holders. The blockchain is designed to grow and adapt to a wide range of games, serving as the fundamental backbone of the Gala Games and Entertainment ecosystem. In August 2023, Gala Games transferred unsold and reserved NFT game items from the Ethereum network to GalaChain, their proprietary blockchain. With this, gamers can utilize their NFTs without incurring Ethereum gas fees, and Gala Games can integrate more advanced web3 functionality into the titles on their platform. [45][50]
As part of the transition, players can see the introduction of various tiers of new NFT Mystery Boxes, each containing game items that are no longer available in the Gala Store. Jason "BitBender" Brink, the President of Blockchain at Gala Games, shared his thoughts on the transition, stating: [50]
“Bringing NFTs from our games onto our own layer 1 blockchain is a huge step forward. These are game items intended to be used and enjoyed without always worrying about bridges and gas– that's what GalaChain is designed for!”
Gala Games has introduced 30,204 NFT Mystery Boxes across various price ranges, through GalaChain capabilities. [50]
Partnerships
In November 2020, Gala Games partnered with Brave, the makers of the innovative Brave browser, to team up with Mirandus to release a fantasy role-playing game (RPG). This became Gala’s largest and most ambitious game ever released. Gala Games incorporated DeFi into gameplay by adding its native token, GALA, to Polyient asset management. Polyient Capital, whose utility token is PGU, provides liquidity for the GALA-PGU pool to expand the GALA token economy within the Polyient Games Ecosystem. At first, Gala Games was designed for gamers, but as the platform expanded into music and other forms of media, a blockchain needed to power the ecosystem was developed. Gala’s blockchain is known as Project GYRI, but the community and the team refer to it as GalaChain. [10][11][12][13]
In April 2021, Gala Games partnered with South Korean media protocols, Stream Protocol, and Staby Go, to raise global awareness of its content. The partnership is mostly for content networking, but NFT releases and auctions will be included in the long run, as well. In February 2023, Gala Games won the Web3 Gam3rs' Choice Awards in Miami, United States. It won the Studio of the Year category, which got a lot of people talking about the Gala Games. [14][15]
In December 2021, Gala's team revealed their collaboration with C2 Ventures, a newly established cryptocurrency investment firm founded by Ciara Sun, the former Head of Listing and Blockchain Investments at Huobi Global, to introduce a $100 million blockchain gaming fund to invest in game developers and emerging projects utilizing blockchain technology, encompassing areas such as P2E, GameFi, metaverses, and various decentralized gaming solutions. Eric Schiermeyer, CEO of Gala Games, said: [46]
“This event for our community has ushered in the new blockchain generation of gaming." He stated further that: “We brought together the biggest names and franchises in the industry to present our vision for the future. We are focused on building gaming titles that fans will want to play if we are going to take blockchain gaming truly forward. This is just the beginning as we look to develop the Galaverse experience around the globe.
