This proposal outlines a new system of transaction fees for core Gala-operated channels. While the addition of a fee structure was inevitable, the GalaChain dev team has created a system that allows independent channel creators unparalleled autonomy and control while delivering lower fees than you’ll find almost anywhere else in the web3 world.
The proposed fees are substantially lower than the fees associated with almost any other blockchain. Still, the proposed system enhances the sustainability of the greater GalaChain ecosystem as it continues to grow, bolstering the economy and giving third party channel operators the freedom and control necessary to grow their own projects.
Transfer Fees
The cost of minting or transferring items on Ethereum varies depending on variables like network congestion, transactional volume and transaction type. While it may cost $2+ (in ETH) to transfer any quantity of a fungible token like $GALA, GalaChain’s initial fee structure would make such a transfer cost only 2-4 cents (depending on the current value of $GALA). We believe that a predictable and more steady transaction fee will be welcomed by the GalaChain community.
Batch Transactions, 1 Fee
On GalaChain, it’s possible to execute large actions with single transactions, such as mass batch minting of tokens. On GalaChain, tokens can be minted to hundreds or even thousands of recipients with a single batch transaction, requiring a fee of only 1 $GALA for the whole batch.
Basically, this fee system will have additional benefits to creators proportional to the finesse and efficiency with which they use the chain. The power of GalaChain can accomplish a lot with a single well-placed transaction, leaving Ethereum in the dust in terms of cost effectiveness for creators.
BatchMintToken Example
If the Ethereum gas fee for minting an NFT is $2, that fee is required for each token that is minted, so minting an NFT from the same batch to 200 different users would cost $400 in gas fees(roughly equivalent to 20,000 $GALA at current value).
On GalaChain, the BatchMintToken transaction would allow the creator to mint all 200 NFTs directly to their recipients for a single set fee (1 $GALA), using 1 transaction alone.
Fee Structure for Ecosystem Health
To address these challenges in a way that incentivizes node operators and channel founders, we propose the implementation of a new transaction fee structure specifically for the basic asset channel controlled by Gala. The proposed system does not extend to individual third-party channels.
Each third-party channel operator retains full autonomy to set and manage their own fee structures according to their unique needs and goals. The fees outlined in this document will not impact those independent channels in any way, allowing third-party operators to maintain their independence and flexibility over their own transaction fee models. This distinction ensures that while Gala implements a standardized fee approach for its own basic asset channels, it does not interfere with the diverse and customized economic models that third-party channel operators might choose to implement.
Proposal Overview
We propose the introduction of a fee system on GalaChain. This fee structure will apply to various transactions and actions within GalaChain’s basic asset channel. The primary objectives of this proposal are to ensure the sustainability of the Gala ecosystem, incentivize responsible usage of network resources, prevent spam and reward channel founders and node operators.
Proposal Details
GalaChain Token Transactions (Subject to Fees):
BatchFillTokenSwap
BatchMintToken
BurnTokens
FulfillMint
FulfillMintAllowance
MintToken
MintTokenWithAllowance
RequestTokenBridgeOut
RequestTokenSwap
TerminateTokenSwap
TransferToken
User Actions (1 $GALA Fee Per Action):
Minting currency from mint allowance
Minting NFTs from mint allowance
Bridging out currency (note: existing fees apply; future dynamic fees are in development)
Sending currency
Sending NFTs
Paying for orders by transferring funds
Paying for orders by burning funds
Ecosystem Benefits
Channel Founder Incentives: Founders of new GalaChain channels will be able to set fees for their own asset channels in the future, receiving a portion of fees collected within those channels.
Node Operator Incentives: A portion of transaction fees will be allocated to node operators, ensuring ongoing benefits for their crucial role in the decentralization and robustness of GalaChain.
Referral Incentive: As approved in a prior Founder’s Node vote, all $GALA burned as gas fees qualifies for a direct referral incentive reward. The direct referrer receives 8-10% of the burnt $GALA as a mint allowance, and the second-degree referrer receives 2%.
Prevention of Abuse: With a moderate fee system in place, abuse of GalaChain functions is actively discouraged. Most blockchain exploits and abuses are related to unreasonably high numbers of transactions, and per-transaction fees will de-incentivize these types of behaviors by potential abusers by increasing cost with transactional volume.*
*In THIS EXAMPLE, a game called Sunflower Farmer nearly “broke” the Polygon chain by monopolizing gas costs, causing transactional fees to drastically and suddenly increase. A system of set low fees will prevent this sort of exploit for a more stable blockchain ecosystem, and Gala will continue to update and tweak this system as needed for long term ecosystem health.
Implementation Plan
Upon approval of this proposal, the new transaction fee structure will be implemented immediately within the GalaChain basic asset channel.
The initial rollout will apply to transactions on the asset channel, eventually expanding to include owners of other channels in the Gala ecosystem, allowing them to create their own fee structures. Please note that external channel owners will have the ability to to set and control their own fees. More details about external channels will be provided with future updates.
Vote Details
Voting Period: 1 week
Approval Requirement: Simple majority (51%)
Eligibility: 1 vote per Founder’s Node
Vote Question
Should a new system of GalaChain transaction fees be implemented to support long term ecosystem health and user incentives?
Yes: I am in favor of the proposed fee structure.
No: I am not in favor of the currently proposed fee structure.
Abstain: I am neither in favor nor against this proposal.
Conclusion
This proposal aims to enhance the efficiency, security and sustainability of the Gala ecosystem through the introduction of a new transaction fee structure on GalaChain. We believe this change will contribute positively to the ecosystem’s long-term health while providing additional incentives for channel founders and node operators. We appreciate your participation and support in this governance vote as we continue to build a stronger, more resilient Gala ecosystem.
Thank you for your ongoing commitment to our shared vision.
This proposal addresses the need for a more refined emission mechanism in light of factors impacting burn rates. Currently, the halving schedule can result in abrupt changes in token distribution, especially if burn rates cause the supply to decrease beyond what is currently considered a current “tier”. This can lead to an inelegant doubling of token emissions as halving tiers oscillate between emissions tiers. This could disrupt the economic stability of our ecosystem.
A smoother emission curve is proposed to ensure a stable and predictable token issuance, promoting long-term growth and stability.
Proposal Overview
I propose replacing the current halving schedule with a daily emission model. This model would emit 0.25% of the remaining gap between the total supply and the max supply each day. This change aims to create a more predictable and stable emission curve, aligning with the evolving needs of our ecosystem. This is based on a proposal submitted by Lukabylie, the creator of the WEN token.
Proposal Details
Background and Rationale
Factors affecting burn rates can cause the token emission to fluctuate, making the current halving tiers inefficient and unpredictable, especially if a source of significant burns enters the ecosystem. A situation where the emission is oscillating between two “tiers” would be severely suboptimal.
A daily emission model at 0.25% of the remaining gap between the total supply and the max supply offers a gradual and consistent token release, better suiting the current economic realities of the whole ecosystem.
Implementation Plan
Terminate the current halving schedule immediately.
Implement the daily emission model. The emission will be calculated as 0.25% of the remaining gap between the total supply and the max supply.
Following implementation, all documentation will be updated to reflect this change.
Expected Outcomes
Stability: Reducing the market shocks associated with halving events will promote a more stable economic environment.
Predictability: A smoother emission curve provides clearer expectations for node operators and potential investors, aiding in long-term planning and investment strategies.
Governance and Voting
This proposal should be subjected to a governance vote, requiring a majority approval from Founder’s Node operators.
The voting period should last for at least one week, ensuring ample time for all operators to participate and voice their opinions.
Vote Details
Voting Period: Voting will be open for a period of 1 week, starting with the announcement of this proposal.
Eligibility: All Founder’s Node operators (1 vote per Founder’s Node)
Majority Requirement: a simple majority of 51% will be required to pass this proposal.
Vote Question
Should the $GALA dynamic halving schedule transition to a system in which 0.25% of the difference between Total Supply and Max Supply is emitted daily?
Yes: I am in favor of this emission update for more stable and predictable token emissions.
No: I am not in favor of this update and have voted that emissions should remain with the dynamic halving tier-based system.
Conclusion
Transitioning to a daily emission model at 0.25% of the remaining gap between the total supply and the max supply represents the strategic adaptation and evolution of our ecosystem.
I encourage all stakeholders to consider this proposal carefully and ask Gala to put it forward as a vote in favor of a more stable and predictable emission strategy.
We love our communities at Gala. Even as they have grown and multiplied, first from solely Gala Games into multiple entertainment genres with Gala Music and Gala Film, then branching out into industries beyond entertainment with the release of the developer friendly GalaChain SDK. This family will get bigger and bigger, but we’re still (and always) a family.
One of the most foundational groups in our community is the Gala Founder’s Node operator ecosystem. Since the very beginning, they have been there, powering our network in exchange for $GALA even before GalaChain existed. Today, the operators of this massive DePIN (Decentralized Physical Infrastructure Network) are behind one of the largest decentralized networks in the world.
As always, we want to thank our dedicated Founder’s Node operators for acting as the engine of our network. You are true pioneers who have believed in our web3 mission of empowerment through ownership, some of you since our earliest days. Thank you.
Understanding Gala Founder’s Nodes
At the core of our Gala Ecosystem lies the innovative and powerful Founder’s Nodes. These nodes are the backbone that supports and drives our entire network, playing a critical role in ensuring the smooth and efficient operation of our decentralized platform.
Think of a node as an intersection of data on a blockchain, or a joint. In the same way that a traffic intersection is governed and regulated by a traffic light, a blockchain intersection is regulated by a node.
The most fascinating thing about nodes in web3 is how they make decentralized networks possible, essentially turning operators’ home computers into agents (or employees) of the blockchain. By running a simple program in the background, operators can power the network, even with little to no understanding of how it’s working.
The distribution of data across a network of nodes is foundational to a decentralized ecosystem like Gala.
What Are Founder’s Nodes?
Founder’s Nodes are specialized servers operated by community members who have acquired a license to run them. These nodes are integral to the functioning of our GalaChain, contributing to various essential tasks such as securing the network and storing data. Think of them as the silent workhorses that keep our ecosystem thriving.
Incentives for Node Operators
Operating a Founder’s Node means collecting daily $GALA as it is generated. Node operators receive daily distributions of $GALA tokens, our ecosystem’s digital currency, for their contributions to the network. This reward mechanism not only incentivizes node operators but also ensures the continuous and sustainable operation of the network.
Distribution to Founder’s Node operators is one of the main ways that $GALA first enters into circulation. The amount of $GALA distributed to operators each day depends on the number of active operators and the current circulating supply of $GALA, using a dynamic halving model as described in the Ecosystem Blueprint.
Governance and Decentralization
Our vision for Gala is deeply rooted in the principles of decentralization. Founder’s Nodes play a crucial role in this vision by participating in governance through consensus voting. Node operators have the power to influence major decisions, such as the distribution of $GALA and other significant ecosystem developments. This participatory approach ensures that our community has a voice in shaping the future of the Gala Ecosystem.
Founder’s Nodes are the foundation upon which our Gala Ecosystem is built. They provide essential services, secure the network, and empower our community through governance participation. By running these nodes, our dedicated operators contribute to the resilience and growth of the GalaChain, helping us drive the decentralized revolution forward.
In light of the recent security incident which led to the unauthorized minting and sale of ~600 million $GALA tokens and a permanent locking of ~4.4 billion tokens, this proposal aims to formalize the burn of this ~4.4 billion $GALA tokens, as well as ~600m tokens from the central Gala Treasury, to ensure the stability and sustainability of the ecosystem.
Note: Due to the upgradable nature of the $GALA contract, the proposed changes will not necessitate swaps or relistings on exchanges, and can be executed with no disruption to all users of the $GALA token.
Objective
To upgrade the $GALA contract to include a definitive and irreversible burn of the same quantity of unauthorized tokens, or tokens determined by law enforcement to be illegitimately gained, and to enhance the security features of the contract to prevent future unauthorized access or breaches.
Proposal Details
1. Contract Upgrade
Develop and deploy a hotfix version of the $GALA contract that removes the illegitimate supply.
Develop and deploy a further upgraded version of the $GALA contract that locks in changes to better secure the contract and supply.
2. Token Burn
Permanently remove ~5 billion $GALA tokens from circulation by sending them to a burn address from which they cannot be retrieved.
Ensure that the burn process is transparent and verifiable by the community and external observers.
3. Timeline and Implementation
Immediately commence development of the upgraded contract upon approval of this proposal.
Schedule the contract upgrade and token burn to be completed within the next 72 hours.
Voting Details
Voting Period: The voting will be open for a period of 24 hours from the moment of the proposal announcement.
Eligibility: All Founders Node operators.
Majority Requirements: A simple majority of 51% of votes will be required to pass this proposal.
Vote Question
Should a $GALA contract upgrade be deployed for removal of unauthorized supply and enhancement of contract security, permanently removing ~5B $GALA from circulation via transparent burn in order to promote long-term ecosystem health?
Yes: I support the contract upgrade and $GALA burn for enhanced security and to promote ongoing ecosystem health.
No: I do not support the contract security upgrade and the burn of these illegitimate tokens from circulation.
Abstain: I choose to abstain from voting on this proposal.
Expected Outcomes
Restoration of community trust and stabilization of the $GALA token supply and Node Reward schedule by reducing the total supply.
Strengthening of the $GALA ecosystem through enhanced security measures.
Conclusion
This proposal is crucial for the long-term viability and security of the Gala ecosystem. Community participation in the decision-making process is highly valued; all Founder’s Node operators are encouraged to vote and contribute to the discussion.
As a foundational pillar of the Gala ecosystem, our Founder’s Node operators have always played a crucial role in shaping the future of our platform. Traditionally, the decision-making process has involved simple proposal style votes, offering a binary choice on the direction of development within the Gala ecosystem.
The Vote
The voting opens at 2pm PT on April 12th and concludes at the same time on April 19th.
As you know, we opened GalaChain to external development with the release of the open-source GalaChain SDK earlier this year. The community’s response was nothing short of phenomenal, leading to the creation of invaluable resources by dedicated developers. Among these resources, various GalaChain explorer apps stand out as exemplary projects that not only enhance the ecosystem but also enrich our community.
The Reward
In recognition of these contributions, we’re dedicating this vote to decide which development team will be honored with a remarkable prize: Either 1 million $GALA or a prestigious Gala Founder’s Node license– Winner’s choice. This initiative is not just about rewarding innovation; it’s about celebrating the spirit of community and collaborative growth that defines Gala.
The Candidates
The spotlight is on the following GalaChain explorers, each a testament to the ingenuity and commitment of our community developers:
We encourage all Gala Founder’s Node operators to engage with these explorers and make an informed decision on which project truly deserves the accolade and the prize. Your vote is a powerful tool in shaping the ecosystem and recognizing the efforts that fuel our collective growth.
Gratitude and Anticipation
Our heartfelt thanks go to all GalaChain developers for their contributions and to our extraordinary community for their unwavering support. This vote marks a new chapter in our journey towards a more inclusive, innovative and decentralized future. Join us in celebrating the creativity and hard work that continue to propel the Gala ecosystem forward.
