GalaChain Enables Tokenization of Founder’s Nodes as NFTs
Tony Kim Oct 16, 2024 19:22
GalaChain introduces tokenization of Founder’s Nodes as NFTs, allowing transferability and decentralized operation, enhancing user freedom and ecosystem reliability.
In a significant development for the Gala ecosystem, Founder’s Nodes can now be tokenized as non-fungible tokens (NFTs) on GalaChain, according to Gala News. This advancement allows for the transferability of nodes, giving operators greater freedom and control.
Founder’s Node Licenses
Historically, ownership of Founder’s Nodes was limited to account-locked licenses, preventing transfer between users. In April 2023, a proposal was approved to tokenize Founder’s Nodes, paving the way for eventual transferability.
The recent update enables Founder’s Node licenses to be issued as GalaChain allowances, which can be redeemed as NFTs. This process is currently underway and expected to finalize shortly.
Nodes as GalaChain Allowances
Once a node is redeemed on GalaChain, it becomes a token in the user’s account. While not immediately transferable, nodes can still participate in daily $GALA distributions. Users must pay a fee to make nodes transfer-ready, during which time they are ineligible for $GALA rewards until reactivated.
Associated Fees
Tokenizing Founder’s Nodes involves several fees, payable in $GALA, which are burned to support ecosystem health. The fees include $25 for redeeming the NFT, a transfer-ready fee equivalent to 60 days’ distribution rewards, and a $10 reactivation fee.
Transferability and Market Dynamics
The ability to tokenize and transfer Founder’s Nodes offers the community a new level of flexibility. Although there is no official secondary market, platforms like NFT Harbor provide buying and selling opportunities. However, nodes are not bridgeable to Ethereum, and such features may be considered in the future.
The transfer-ready fee aims to discourage speculative trading, ensuring nodes serve their intended operational purpose. Once transferred, nodes are non-recoverable, and new owners gain the legal right to operate them.
Founder’s Nodes remain available for purchase in the primary market, with new purchases granted GalaChain allowances. It is crucial for users to manage node transfers carefully, as operational status affects $GALA distribution eligibility.
For more detailed information, visit the Gala News.
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