GalaChain Enables Tokenization of Founder's Nodes as NFTs

GalaChain introduces tokenization of Founder's Nodes as NFTs, allowing transferability and decentralized operation, enhancing user freedom and ecosystem reliability.

GalaChain, a layer-1 blockchain designed for the Gala Games ecosystem, has introduced the tokenization of Founder’s Nodes as NFTs, enabling transferability and decentralized operation. This development enhances user freedom and the reliability of the Gala ecosystem.

Founder’s Nodes play a critical role in the Gala Games network, being responsible for validating transactions and distributing daily $GALA rewards to node operators. These nodes are licensed to specific user accounts and were previously non-transferable.

However, a proposal approved in April 2023 aimed to tokenize Founder’s Nodes, allowing for their eventual transferability. With the latest update, Founder’s Node licenses are now being issued as GalaChain allowances, which can be redeemed as NFTs. This process is currently being carried out and is set to conclude soon.

Once a node is redeemed on GalaChain, it becomes a token in the user’s account. While nodes can participate in daily $GALA distributions immediately after being redeemed, they are not yet transfer-ready. To make a node transfer-ready, a fee is required, which renders the node ineligible for further $GALA rewards until it is reactivated.

Several fees, payable in $GALA, are associated with tokenizing Founder’s Nodes. These fees are burned to support the ecosystem’s health. The fees include:

● $25 for redeeming the NFT.

● A transfer-ready fee, which is equivalent to 60 days’ distribution rewards.

● A $10 reactivation fee.

The ability to tokenize and transfer Founder’s Nodes provides the community with a new layer of flexibility. While there is no official secondary market for nodes, platforms like NFT Harbor facilitate buying and selling. However, nodes are not bridgeable to the Ethereum blockchain, and such features may be considered in the future.

The transfer-ready fee is designed to disincentivize speculative trading, ensuring that nodes are acquired for their intended operational purpose. Once transferred, nodes are non-recoverable, and the new owners gain the legal right to operate the node.

In the primary market, Founder’s Nodes are still available for purchase, and new purchases will be granted GalaChain allowances. It is crucial for users to manage node transfers carefully, as operational status affects $GALA distribution eligibility.

For more detailed information, visit the Gala News.