Gala Founder’s Nodes can now be Tokenized on GalaChain
In a huge leap forward toward operator freedom and control, Gala Founder’s Nodes can now be tokenized on GalaChain and transferred from one user to another.
Founder’s Node Licenses
Until now, Founder’s Node ownership has been tied to an account-locked license to both operate a node and receive rewards for doing so. Users of the Gala ecosystem can purchase Nodes for their account, but there has never been any way to transfer Founder’s Node licenses to other users in the ecosystem.
In April 2023, Founder’s Node operators approved a proposal to move toward tokenization of Founder’s Nodes, promising an eventual path to transferability of Node licenses.
As the culmination of several months of hard work from our platform, legal and node teams, this update makes that proposal a reality.
How It Works
Nodes as GalaChain Allowances
All Founder’s Node licenses will be issued as GalaChain allowances within the licensed account. Therefore, the node owner will have the ability to redeem their Node NFT onto GalaChain. At the time of this blog’s publication, the process of issuing Founder’s Nodes as GalaChain allowances is already underway. It will be completed within the next couple days.
Once a Founder’s Node has been redeemed onto GalaChain, it is a token in the user’s account. However, it is not yet transferable.
Whether the Founder’s Node exists as a GalaChain allowance or a redeemed NFT, it can still be online and participate in the daily $GALA distribution until marked as transfer-ready.
Making a Node “Transfer-Ready”
Once a node license has been tokenized (redeemed as an NFT), it can then be made transfer-ready for a fee, payable in $GALA by the owner.
Once a node has been made transfer-ready, it is no longer eligible for the daily distribution of $GALA until it is reactivated. Once it is transfer ready, the node license can be transferred from the owner’s Inventory to any other GalaChain wallet.
Associated Fees
There are several different fees involved with the Founder’s Node tokenization process that users should understand before they begin. All fees are payable in $GALA alone, and all spent $GALA is burned from circulating supply.
- Redeem the NFT – A fee of $25 worth of $GALA is charged (in addition to the standard GalaChain transaction fee) when an owner redeems their GalaChain allowance as an NFT on GalaChain.
- Making the NFT Transfer-Ready – A fee equivalent to 60 days’ distribution reward* is charged for marking the NFT as transfer-ready. The exact amount of this fee is determined using the average distribution amount of the previous 7 days.
- Reactivation Fee – A fee of $10 worth of $GALA is required for a new or existing owner to reactivate a Founder’s Node NFT, removing its transfer-ready status and making it eligible once again for activity and $GALA reward distribution.
*60 days’ distribution $GALA equivalent is an introductory fee for this new feature and is subject to change.
FAQ
Why would someone want to transfer a Founder’s Node NFT?
The ability to tokenize and transfer Founder’s Nodes represents a new level of freedom for our community. This ability will ensure that we have an effective and reliable group of Founder’s Node operators powering the ecosystem, facilitating an exit for those who no longer wish to operate their nodes.
Where can I buy or sell Founder’s Node NFTs?
There is currently no official Gala-operated secondary market where Founder’s Nodes can be bought or sold, but the beta version of the community-built secondary market at NFT Harbor is prepared to facilitate buying or selling Founder’s Node license NFTs.
Can Founder’s Node NFTs be bridged to Ethereum?
Founder’s Node NFTs are NOT bridgeable to Ethereum. It is possible (but not guaranteed) that this function will be added in the future.
Why is there a fee for making my Founder’s Node NFT transfer-ready?
It should be considered carefully – This fee signifies that while transfer of Founder’s Nodes is accessible, the decision to do so should not be taken lightly. As the backbone of our ecosystem, we value reliability and consistency in our Founder’s Node operators. We strive to have a steadfast and community-driven group of dedicated owners.
$GALA is burned for ecosystem health – 100% of $GALA spent on associated fees is burned from circulating supply, a supportive activity that encourages the long-term health and stability of the Gala ecosystem.
Not meant for speculation – Without a transfer-ready fee, Founder’s Node tokens run the risk of becoming a speculative item whose prices can be manipulated by those who do not recognize Founder’s Nodes for their correct purpose. Part of the transfer-ready fee’s role is to discourage irresponsible speculative trading behaviors, as Gala Founder’s Nodes are not investments.
What can I expect in terms of secondary market value?
We cannot make any predictions or offer any advice about secondary market prices. An important part of the freedom incorporated with this update is a free market for pricing when it comes to secondary market sales.
Can a transferred Founder’s Node NFT be recovered in the event of a mistake?
No, once transferred, the legal right to operate the node is the new owner’s and your node cannot be recovered.
Can Founder’s Nodes still be purchased in the primary sale?
Yes, Founder’s Nodes are still available HERE. GalaChain allowances will be granted for all new Founder’s Nodes purchased in the primary sale going forward.
Can my Founder’s Node be transfer-ready and online at the same time?
No, when your Founder’s Node is transfer-ready it cannot be operated, nor is it eligible for $GALA distribution. Common Ground World Node operators should note that even though all Common Ground World Nodes will now be marked “Transfer-Ready,” they are still eligible for rewards.
I made my node transfer-ready then decided to start operating it again. Will my transfer-ready fee be refunded?
No, the transfer-ready fee is non-refundable. Additionally, to reactivate your Founder’s Node NFT, you must pay the reactivation fee.
I transfer my node NFT to an accountless web3 wallet and I can’t see the NFT in my inventory.
In order to use your node, it must be in the wallet associated with your Gala account. If you send it to any other wallet, you won’t be able to use it until you send it back to your Gala account’s wallet address which you can copy after clicking your profile image in the top right on games.gala.com.
Where can I trade my tokenized Founder’s Node
https://marketplace.nftharbor.io/item/Nodes/Node/FoundersNode/Ancient
