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. While Gala Games operates on the Ethereum blockchain, it is also compatible with other chains, such as the Binance Smart Chain. The platform is in the process of transitioning to GalaChain, its proprietary blockchain, to enhance transaction speed and address many of Ethereum's scalability challenges. ^[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 are an NFT-based 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 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. A typical example is the Town Star Nodes, where owners can earn the in-game token, TOWN. 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]

Player Nodes

Player Nodes power Gala Music's listen-and-earn economy. They are decentralized music players that allow users to play and share music in the form of NFTs while enabling reward-generating experiences. Rewards are usually in the form of BEAMS and are meant for Node owners who operate and meet Player Node distribution requirements. Distribution requirements are as follows: ^[20][22]

• Operating the Player Nodes for 20 hours
• Hosting a track on the Node

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

Each day, GALA is recorded in a distribution ledger for those who meet the criteria for earning distribution points. The utility token allows individuals to get NFTs and purchase licenses for nodes like Founder Nodes on the Gala Games store. Users who have complete control over how to use GALA can transfer the token to other people. ^[44][45]

Token funding

On September 11, 2020, GALA emissions to the founder nodes were set out without any token sale or pre-minting phase. The project was self-funded and didn't involve any investment rounds. ^[44]

Team supply

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]

Token allocation

GALA token creation occurs through minting, serving as node rewards distributed to Gala Games Founder Node operators. The reward is divided equally, with half going to Founder Node Operators and the other half allocated to the Gala Conservatorship. ^[44]

Token supply

The maximum total supply of GALA is capped at 50 billion, and its daily emission is influenced by the current circulating supply. When GALA is used as gas within the Gala Games ecosystem or for other ecosystem-supporting activities like specific NFT purchases, the circulating supply decreases. ^[44]

The present GALA emission rate is defined by a dynamic daily rate reliant on the total supply of GALA on the blockchain. If the total supply rises, that is, when more GALA is generated than consumed, it leads to a reduced emission amount. These factors counterbalance each other, forming a dynamic and adaptable supply system. Also, it guarantees lasting ecosystem rewards for Founder Nodes, encouraging their support while also imposing restrictions on the total supply by exerting downward pressure on the number of tokens in circulation. ^[44]

Token utility

GALA serves as the gas token for all transactions conducted on Gala Games' native Layer-1 blockchain, GalaChain, and every GALA utilized as gas within the expanding Web3 Games ecosystem gets burned. Furthermore, as the Gala Games ecosystem brings in new games and introduces new NFT items for sale, a significant portion of the items will be traded for GALA, leading to a reduction in the overall supply of GALA due to burning.

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 will 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.

Legal Dispute

On August 31, 2023, Eric Schiermeyer and Wright Thurston initiated a legal conflict concerning allegations of theft and corporate mismanagement. ^[49]

Schiermeyer's lawsuit

Schiermeyer filed a lawsuit on behalf of shareholders of Blockchain Game Partners, the company behind Gala Games. The lawsuit also names Thurston's company, True North United Investments, as one of the defendants. The lawsuit claims that in 2021, Thurston allegedly stole 8.645 billion GALA tokens valued at $130 million from the company. When questioned, he stated that he was merely holding the tokens in secure wallets for the Gala Games. Below is the claim: ^[49]

“Last year, Thurston and/or True North began moving the stolen tokens from those wallets and exchanging or selling them in a complex web of obfuscatory transactions. He was able to exchange, hide or sell approximately $130,000,000 worth of the stolen GALA before Gala Games could stop him.”

Furthermore, accusations were made that Thurston illicitly took licenses for Gala game node operations and profited from their sale. The claim states that Thurston, in contrast to the CEO, is an absent director, yet he has paid himself more than ten times Schiermeyer's compensation. Schiermeyer seeks the return of stolen assets through disgorgement or restitution, compensation for damages, and the removal of Thurston as a director of Gala Games. ^[49]

Thurston's retaliation

In his lawsuit, Thurston seeks Schiermeyer's removal as director on grounds of "corporate waste, conversion, and unjust enrichment." He asserts that his lawsuit was filed on behalf of Gala Games' parent company. Allegations against Schiermeyer include: ^[49]

• Depleting approximately $600 million in Gala and shareholders' assets
• Borrowed money from the company for his personal use
• Establishing offshore entities to exploit business opportunities intended for the Gala Games