Gala Games is a GameFi platform created in 2019. Last April, it announced an airdrop for the second version of its native token: the GALA. This week, the team proceeded to destroy important GALA tokens, thus creating a shock wave within the crypto community. Of course, the team made a point of explaining its choices and its motivations.
Gala Games destroys GALA tokens to put an end to the rumors of “Dump and Exit”
Gala Games is known for its gameplay, including Fortitude released in 2022. To keep its community buzzing, the GameFi platform is chaining actions. This week, for example, she announced the destruction of 21 billion GALA tokens. If we take into account the current price of GALA, it would be the equivalent of 600 million dollars.
By this approach, Gala Games wanted above all to avoid stirring up rumors concerning a possible “dump and exit”. Such an event could cause the price of the GALA token to fall. In this sense, the team stated in a blog post :
“The tokens that we hold, we have received as rewards from the ecosystem over the past few years. While they have always been tokens that we should use to fund the growth and curation of the ecosystem, we know that many people view them as a fundamental risk to the overall economics of the project. »
To calm concerns, Gala Games even presented a detailed combustion plan :
- 2 billion GALA tokens as part of the “2023 Vision Paper” project
- 3.96 billion additional GALA tokens
- 15 billion GALA tokens
A strategic decision to maintain the proper functioning of the ecosystem
By burning nearly $600 million in GALA tokens, Gala Games is also thinking about the future of the GameFi platform. As explained by its president Jason Brink:
“At a fundamental level, we believe that if the ecosystem is to function and be sustainable in the long term, we also need to be able to live off of the rewards we receive from the ecosystem – not having a gigantic pile of GALA we could tap into at all moment “.
After this third symbolic burn, Gala Games has completely exhausted its cash. Regarding the GALA token, it is currently trading at $0.03.
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