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Referral Incentive System for Ecosystem Usage

February 9, 2024
Here is a new proposal for the decentralized Gala Founder's Node ecosystem.
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In the spirit of fostering innovation and collaboration within the Gala Founders Node Ecosystem, a new proposal is presented for consideration. This proposal is a direct response to the community feedback, emphasizing our collective journey towards enhancing network growth and engagement.

Proposal Overview:

A view of the topic to be discussed below.

The core of this proposal introduces a referral system designed to incentivize ecosystem supporting actions. By engaging in token burn activities, users contribute to the ecosystem’s sustainability and incentivize the long-term Founder’s Node support of the ecosystem. In recognition of the importance of community-driven growth, the proposal outlines a mechanism by which the actions taken by a user can potentially benefit those who brought them into the ecosystem.

Using the flow chart above, USER A refers USER B to the ecosystem, at which point USER B refers USER C.

If the proposal is confirmed by the Founder’s Nodes, when USER C initiates a burn, the account that referred them (USER B) will receive a mint allowance equivalent to 8% of the burned amount. The account that referred USER A will receive the equivalent of 2% of the burned amount. This initiative aims to foster a more engaged and collaborative community, encouraging wider participation in the ecosystem’s development.

This will not impact the Founder’s Node emission rate, but can be looked at as a referral burn rebate for ecosystem supporting actions.

In the event that there is no referring party, then there would be no referral burn rebate.


User A refers User B.
User B refers User C.

User C performs an action which initiates a burn of 1000 $GALA
User B receives a mint allowance for 80 $GALA
User A receives a mint allowance for 20 $GALA

Actions which would qualify:

  • Purchase by burn
  • Gas fees
  • Channel establishment fees

Note: All previous referrals would still remain part of this system. If you have referred a user previously and they are a part of your account, then you would still receive the referral bonus based on their $GALA burning actions.

Key Highlights:

  • Referral Rewards: The introduction of a referral reward mechanism encourages existing ecosystem participants to bring new users onboard, enhancing the network’s robustness and activity level.
  • Incentive Structure: Focusing on on-chain actions, excluding bridging activities, ensures the incentive mechanism is transparent and straightforward. This clarity is crucial in maintaining the integrity and purpose of the incentive system.
  • Implementation Timeline: With a commitment to agility and responsiveness, the proposed system is slated for implementation within 7 days following approval. This rapid deployment timeline underscores the ecosystem’s dedication to innovation and timely enhancement.

Community and Governance Engagement:

Consistent with the ethos of transparency and collective decision-making, this proposal will undergo thorough discussion within the Founder’s Node Operator. There will be at least one AMA on this topic, with extended engagement, to gather feedback ensuring that the proposal is refined and aligned with the community’s vision and needs.

Voting Options:

The voting options are currently as follows, though they may be modified by discussions prior to a governance vote:

Yes: I support the implementation of the Referral Incentive System as proposed, recognizing its potential to enhance ecosystem sustainability and community engagement through incentivized token burns.

No: I do not support the proposal as it stands. I believe that the proposed referral system and token burn incentives may not align with the ecosystem’s long-term growth and engagement goals.

Abstain: I choose to abstain from voting on this proposal. While I acknowledge the importance of community-driven initiatives and ecosystem sustainability, I require more information or am neutral on the impact of the proposed referral incentive system.


This proposal represents a strategic step towards leveraging the Gala Founders Node Ecosystem’s full potential, encouraging active participation, and rewarding contributions that drive the ecosystem forward. Through collaborative efforts and a shared commitment to innovation, the ecosystem can continue to evolve, offering increased value and opportunities for all participants.