Gala Games purposefully destroyed $637m worth of $GALA tokens last week. The gaming studio burned the tokens in response to its community asking for a reduction in token supply. What happened with the Gala Games token burn?
Why did Gala Games Burn Gala Tokens?
Web3 gaming platform had a problem on its hands. It held way too much of a supply of its native token, $GALA. As a result, the Gala community felt nervous that the team would someday dump their holdings and exit the space. The token’s price fell 96% in 2022, partly due to this fear.
In response, Gala Games published their 2023 Vision Paper. In the paper, the team pledged to burn two billion $GALA tokens over the year. Additionally, the platform also burned an additional 3,961,582,987 $GALA representing the total amount of tokens it had received in revenue since its launch in 2019. This move didn’t just help buoy community sentiment, however. It also helped to support mobile expansion and strengthen its node ecosystem.
After completing its V2 token airdrop, Gala Games continued the fun. On-chain data shows the Web3 gaming company burned an additional 15 billion tokens, bringing the total of burned tokens to nearly 21 billion. At current valuations, this equates to $637m.
Gala Games took to Twitter to report the news. On May 16, its official Twitter account posted, “The $GALA contract upgrade is the start of a new era for @GoGalaGames. We’re making good on our commitment to our community, and lighting $GALA on fire! “
Moving forward, Gala Games will rely solely on its daily ecosystem rewards to support itself. By doing so, Gala Games is aligning itself with its holders. If the games are successful and players use the platform, then the team running Gala will prosper.
Additionally, Gala will also hold 2 billion $GALA tokens as a strategic reserve. The funds are held in a doxxed wallet, helping to make sure the community feels at ease with transparency around the allotment. The tokens will go towards rewards and supporting the development of the Gala ecosystem.
What is Gala Games?
Gala Games is a leader in the emerging play-to-earn gaming space. The platform uses NFTs to help promote the idea of player ownership of digital assets. Players can earn items and collectibles by playing games and then sell and trade them with other players.
Some of the better-known games on the platform include Townstar and Spider Tanks. Both games harness the power of NFT technology to improve player experience.
Gala Games runs on both Ethereum and Binance Smart Chain. Over the last four years, Gala Games has gone from a startup to a multi-national organization with over 400 employees. Its success is a major indication that gaming is the perfect use case for NFTs. Players want to own their hard-earned in-game items and Gala Games seems ready to meet that challenge.