Gala Games, a Web3 firm, said that in order to allay worries about a potential token selloff, it has practically exhausted its cash reserves.
Gala Games Burns GALA Tokens Totaling More Than $600 Million
This week, Gala Games said that it has “burned” about 21 billion GALA tokens from its own reserves after completing its V2 token airdrop, totaling more than $637 million at the time of the burns. This move was made in an effort to allay fears about a potential “dump and exit” situation.
The tokens we hold we have received as ecosystem rewards over the last several years. While they have always been tokens we were to use to fund the growth and curation of the ecosystem, we know that many people see them as a fundamental risk to the overall tokenomics of the project.
Gala Games Team
The company basically thinks that the significant token burn will allay the fears of holders who could be concerned that the company might sell off notable quantities of its token, which could cause the price to drop.
GALA Team’s Perspective on Burning
Gala explained how it will conduct the burn, stating that it had already planned to destroy 2 billion GALA tokens as part of its “2023 Vision Paper” for the year. Then, 3.96 billion additional tokens were destroyed, which, according to the team, is “equivalent to the total revenue in GALA we have ever received.”
Gala’s response to community concerns regarding the reported “dump and exit” possibility is the additional and greatest burn of 15 billion tokens. Gala stated in the post that the total token burn equaled $660 million in token value and cited on-chain Ethereum network transactions for each component. The coins’ total value at the time of the burns was about $637 million, based on CoinGecko data.
Jason Brink’s Statements
Gala Games, the developer of Web3 games like Mirandus, Grit, and The Walking Dead: Empires, also burnt the tokens with an eye toward the future, according to Jason Brink, the company’s president of blockchain.
At a fundamental level, we believe that if the ecosystem is going to work and be sustainable in the long-term, we need to be able to live off the rewards we receive from the ecosystem as well—not have a gigantic pile of GALA we could dip into whenever,
Brink
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