The decentralized Founder’s Node governance vote for Gala Games Founder’s Node operators happens this week.

Introduction

This proposal seeks to revise the current emission and halving schedule for $GALA, making it dependent on the totalSupply, with the goal of providing a more sustainable and stable ecosystem for Founder’s Nodes. By adapting the emission schedule in response to $GALA burn rates, we aim to mitigate the potential long-term impacts of reduced node rewards and ecosystem volatility.

Background

The existing minting schedule for $GALA follows an emission and halving model similar to that of Bitcoin, with emission halving every July 22nd. Although this approach has its merits, the long-term sustainability of the ecosystem may be threatened due to the diminishing rewards for Founder’s Nodes. Over time, the reduction in rewards may disincentivize node operators, creating potential risks for the ecosystem’s health and stability.

Proposal Details

Objective:

The primary goal of this proposal is to modify the current emission and halving schedule, making it dependent on the totalSupply of $GALA. This will create a more sustainable and stable ecosystem by maintaining a balance between $GALA burn and emission rates.

Revised Emission Schedule:

The new emission schedule will adjust the daily $GALA distribution based on the totalSupply taking into account burned GALA. To maintain algorithmic equilibrium and hedge against volatility, the emission schedule will adapt as follows:

1. For each $GALA burned, an equal amount of $GALA at the current emission rate will be added to the emission tranche. This means that during periods of high $GALA usage and burn, the current emission will continue for slightly longer.
2. In periods of low $GALA usage and burn, the halving will proceed as scheduled according to totalSupply.

This approach does not introduce additional tokens to the ecosystem but rather focuses on maintaining a more balanced and responsive $GALA distribution mechanism.

Benefits:

1. Sustainable node rewards: By adjusting the emission schedule based on totalSupply, the proposal ensures a more consistent reward system for Founder’s Nodes, motivating them to continue supporting the ecosystem.
2. Reduced volatility: The new emission schedule takes into account the dynamics of $GALA burn and usage, which helps in mitigating potential volatility in the ecosystem.
3. Ecosystem stability: A responsive and balanced $GALA distribution mechanism contributes to the overall stability and health of the ecosystem, benefiting all participants.

Conclusion

By adopting this proposal, we believe that the $GALA emission and halving schedule will become more responsive and adaptive to the ecosystem’s needs. This change will ensure a more sustainable and stable environment for Founder’s Nodes and other key ecosystem members. We encourage open discussion, feedback, and questions to facilitate a comprehensive understanding of the proposal and its implications.

If passed, it is expected that this will go into effect within the next 90 days.

Updated Note on Timing

After communications with the community during last week’s governance vote, we have elected to give a bit more time for review and questioning prior to the vote to make things clearer for people. This vote will begin Wednesday morning (Pacific) and continuing until the following Monday when it will close at 5pm PT. This way, there can be more discussion around this topic BEFORE voting begins.

Governance Vote Node Proposal

Should the emission of $GALA be revised to account for totalSupply?

Option 1.): Yes — Make the emission rate of $GALA based on totalSupply

Option 2.): No — The original date-based halving schedule should be maintained