Tony Kim
October 16, 2024 19:22
GalaChain introduces the tokenization of Founders Nodes into NFTs, allowing for transferability and decentralized operations, improving user freedom and ecosystem trust.
According to Gala News, in a significant development in the Gala ecosystem, Founder’s Nodes can now be tokenized as non-fungible tokens (NFTs) on GalaChain. These advancements increase the transferability of nodes, giving operators greater freedom and control.
Founder’s Node License
Historically, ownership of Founders Nodes was limited to an account-locked license that was not transferable between users. In April 2023, a proposal to tokenize Founders Nodes was approved, paving the way for eventual transferability.
A recent update allows Founder’s Node licenses to be minted as GalaChain allowances and redeemed as NFTs. This process is currently underway and is expected to be completed soon.
Nodes as GalaChain allowance
Once a node is exchanged on GalaChain, it becomes a token for the user’s account. Although not immediately transferable, nodes can still participate in the daily $GALA distribution. Users must pay a fee to arrange node transfers, and during this period they are not eligible to receive $GALA rewards until they become active again.
Related fees
Tokenization Founder Nodes include several fees payable in $GALA, which are burned to support ecosystem health. Fees include $25 for NFT redemption, a transfer preparation fee equivalent to the 60-day distribution reward, and a $10 reactivation fee.
Transferability and Market Dynamics
The ability to tokenize and transfer Founder’s Nodes provides a new level of flexibility for the community. Although there is no formal secondary market, platforms like NFT Harbor provide buying and selling opportunities. However, nodes cannot bridge to Ethereum, and such a feature may be considered in the future.
Transmission preparation fees aim to ensure that nodes achieve their intended operational objectives by discouraging speculative trading. Once transferred, a node cannot be recovered and the new owner gains legal rights to operate the node.
Founders Nodes can still be purchased from the primary marketplace and new purchases will be granted GalaChain acceptance. It is important for users to manage node transfers carefully, as operational status affects eligibility for $GALA distribution.
For more information, see Gala News.
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