As part of our continued effort to the long-term sustainability of the Gala ecosystem, we are introducing a new, phased approach to how Founder Node rewards are earned. 

Beginning Monday 16th of June 2025, the Founder Node Staking program will tie $GALA holdings – and later, locked stake – to daily Founder Node rewards to help support alignment across the community.

This update reflects our current goal to more closely align network participation with the broader health and utility of GalaChain and the Gala ecosystem.  While it may lead some operators to reduce their node activity, these changes are designed to focus on the long-term health of the Gala Ecosystem and GalaChain

This model is being introduced as part of a phased rollout and we will monitor performance, gather feedback, and remain open to adjustments as needed based on evolving community needs and ecosystem dynamics.

What’s Changing

• Node rewards will soon scale based on $GALA held (and later, staked)
  
  • To receive 100% of your Founder Node rewards, you’ll need to hold in your GalaChain Wallet or your allowance 1 million $GALA per node.
  • If you hold less, you’ll receive rewards proportional to your amount held.
  • In Q3, the requirement will evolve from just holding to locking (or being in your Allowance)
    
• The 20,000-node minimum online threshold is being removed
  
  • Daily $GALA distributions, following the existing emissions schedule, will continue regardless of how many nodes are online.
    
• A new token called $GSTAKE is being introduced
  
  • $GSTAKE is a token that can be used in place of $GALA for node staking.
  • Initially, 1x $GSTAKE will be considered equal to 1x $GALA.
  • $GSTAKE will be minted on demand by converting eligible NFT exchanges or purchases with $GALA.
  • Details on the eligible NFTs, and the conversion values, will be provided prior to the Phase 2 launch. Exchanges will require a conversion fee (in $GALA).
  • $GSTAKE will be a GalaChain native token, allowing users to transfer, trade or sell on Gala Connect, Gala Swap, or other third party platforms.

What to Expect (Phased Rollout)

• Phase 1: Node rewards based on $GALA holdings (Launching 16th June 2025)
  Daily rewards will scale proportionally based on how much $GALA you hold in your GalaChain Wallet & Allowance.
  
• Phase 2: Introduce $GSTAKE and NFT exchange (Aiming for late June 2025)
  Founders Node operators  can convert eligible NFTs for $GSTAKE to help meet Founder Node staking requirements. Details on eligible NFTs will be provided prior to the Phase 2 launch.
  
• Phase 3: Node Staking (Aiming for Q3 2025)
  Founders Node operators will transition from holding to locking their $GALA, or $GSTAKE to qualify for rewards.
  
• Phase 4: $GSTAKE lending program (Aiming for Q3 2025)
  Share your surplus $GSTAKE to other node operators in exchange for a share of rewards.
  

A Note to Node Owners

We deeply appreciate the dedication and support of our node operators – many of you have been running nodes and supporting Gala since the very beginning. 

This update isn’t about undoing what came before, but about building on that legacy with a more adaptive and ecosystem-aligned model.  

We understand this approach may not work for everyone, and participation levels may shift. That’s okay. The evolution of Gala and GalaChain is rooted in flexibility, and we’ll continue to listen, adapt, and build with our community as conditions change. And for those who continue to support the Gala ecosystem, this is an opportunity to play a direct role in shaping Gala’s next chapter.

* Terms and Conditions to Founders Node Staking are subject to change