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Why I Purchased a Gala Games Node and FAQs

First and Foremost I purchased the node because I believe in Gala Games. I go into more detail with regards to my beliefs and what I see as the future of gaming in my blog on Gala and Mirandus here. I really do believe in this project. I want to stress that my this really is the first reason that I bought a node. I believe in the potential and do want to further the ecosystem.

But ultimately, beliefs don't pay the bills. Everyone keeps asking me about the Nodes and the profitability and the risks, so I want to lay that all out in one place to refer you to. One place where I can answer the common questions that I see because twitter makes it difficult.

Before I do so: This is not financial advice, this is speculative. This is not legal advice. I do not know the future or have a crystal ball. Read further and invest at your own risk. And when you do, it's an investment in yourself, and not Gala Games. Gala Games DOES NOT run the nodes for you, and you do not earn unless you run your nodes.

What is a node?

Simply put, a node is a device that contains a full copy of the transaction history of a blockchain. Nodes also have the ability to vote to make choices to guide the ecosystem development. There's more, but you can google if you're interested.

How Much Does a Gala Node Cost?

Currently, Gala Nodes are going for $8,800 each. However, every time 100 nodes are sold, the price goes up $100.

How Many Nodes Total Will There Be?

There are three types of Nodes, but the ones everyone is interested in are called “Grandfather Nodes.” There will only ever be 50,000 of them. The last one to sell will sell for $33,000.00.

How much Gala is Released Each Day?

From today and until July 21, 2021, 34,246,575 GALA will be distributed each day. Of that, 25% goes to Node Owners, meaning approximately 8,561,643.75 gets split up between Gala Node Owners in the “Distribution Pool.” On July 22, 2021, that number halves to become 17,123,287 total and 4,280,821.75 to the Distribution Pool, and so on and so forth each year. It must be noted, that at least for this year, at the time of halving, a proposal was made to change the 75%/25% to 50%/50%, which was approved, effectively eliminating the effect of the halving on the node owners.

What Do I Need to Do to Earn Gala?

Apart from buying a Node, it only needs to be operating six (6) hours a day during each 24 hour cycle! But you do need to physically take the action of running the node. It is imperative that anyone who buys a node understands that they are relying solely on their efforts to earn Gala, and not on the efforts of Gala Games.

What Do I Earn from the Distribution Pool?

It's easiest to use Jan 7, 2021 as an example. If you owned and operated a node for six (6) hours during the 24 hour period ending Jan 7, 2021, you would have received 2,870 GALA. At that time, one GALA is $.02, so in total $57.40 in one day! If that keeps up, you can theoretically earn $1,722.00 a month! That's a big if (as price fluctuates up and down), but maybe now you see the income potential. Note: I will not be changing this everyday, so it won't be accurate as to the price or the amount earned.

It must be noted that that is just the minimum you could have earned Jan 7 from operating a node. The earnings are based on a “point system”. Running a node gives you 1 point. If you, however, had 10 points yesterday, you would have received 28,704 GALA, or $574.08 (with a valuation of $.02)!

What Is the Points System?

The points system is a system created by Gala Games to incentivize activities. You earn points in the following ways:

1) Personally run a licensed node — 1 point each day

2) Someone you referred run a licensed node — 0.1 point day

3) Someone you referred purchases a node — 10 points on that day only

So, for example, if I referred someone on Feb 7 who bought and ran their node, and I ran my node as well, I would get 1 point for my node, .1 points because my referral ran a node, and 10 points because my referral bought a node. That would have given me a total of 11.1 points. With 11.1 points on Feb 7, I would have received 31,861 GALA, or $637.22. It is important to note that the following day, the 10 points would drop off and I would have 1.1 points going forwards.

Where does GALA go and how do I get it?

This is an interesting point to be made because of its implications. The GALA goes into your “treasure chest”, which you can mint onto the GALA blockchain. The downside is that you have to pay GAS fees to mint it, which is exorbitant. They do this “mint-on-demand” model to enhance decentralization, especially as Gala transitions to a multi-chain model.

HOWEVER, THERE IS A SOLUTION COMING TO THE HIGH GAS FEES: Gala will be implementing Flare Networks and other possible second-layer solutions, which will eliminate the need to use Gas to transfer and ultimately avoid the ridiculous fees.

Do I Need a Computer or a Server To Run The Node?

Right now, running a GALA Node is very low maintenance and can be done on a laptop with no negative effect. However, I would recommend that you get a VPS (it only costs $6.99 a month and is really easy!). Here is a step by step video!

In the future, operating a node may be more taxing, and you may get rewarded based on the amount of CPU. So keep in mind that in the future, CPU and electricity may be key to better rewards!

What Else Can I Earn?

First and foremost, there are NFTs that may be distributed to Node operators each day. These items can be minted and then sold or used in game. These “airdrops” happen every day.

Additionally, the long-term goal of Gala Games is onboarding multiple game studios, as it is open-sourced, and creating steady stream of NFTs which will get dropped to the node network, and possibly any in-game currencies as well – everything will go through nodes! In addition to that, the nodes themselves will serve a vital role in supporting the ecosystem, with an economic model built out to incentivize the network and keep it stable. In the long-run, this would result in GALA being distributed to the node network in lieu of centralized systems, as the node network will ideally be supplying the computational power and storage needed to keep the network stable. Imagine getting a special item from a game with millions of users before the game is released!

Last but not least, another discussed goal is being able to sell your node, but there is no guarantee that you will ever be able to make a profit on that action or even be able to sell it.

If you would like to find out more about nodes and purchase a node, check the Gala Games website linked here.

Disclaimer: This is not legal or financial advice. I am a Gala holder, Mirandus Land Owner, and Gala Node Owner/Operator. Any links to Gala Games website use my referral link.

If you want to use a referral, but don't want to use mine, use those of my friends who need referrals! Here and Here!