GalaChain Tokenizes Founder’s Nodes as NFTs for Transferability

In a major update for the Gala ecosystem, Founder’s Nodes can now be converted into non-fungible tokens (NFTs) on GalaChain, as reported by Gala News. This development allows for the transferability of nodes, granting operators enhanced freedom and control.

Founder’s Node Licenses

Traditionally, the ownership of Founder’s Nodes was restricted to account-locked licenses, which prohibited transfer between users. In April 2023, a proposal was sanctioned to tokenize Founder’s Nodes, setting the stage for future transferability.

The latest update facilitates the issuance of Founder’s Node licenses as allowances on GalaChain, which can be exchanged for NFTs. This process is currently in progress and is anticipated to be completed soon.

Nodes as GalaChain Allowances

After a node is redeemed on GalaChain, it transforms into a token within the user’s account. Although not immediately transferable, nodes are still eligible for daily $GALA distributions. Users must incur a fee to make nodes ready for transfer, during which time they will not receive $GALA rewards until reactivated.

Associated Fees

Tokenizing Founder’s Nodes entails various fees, payable in $GALA, which are burned to maintain ecosystem stability. These include a $25 fee for redeeming the NFT, a transfer-ready fee equivalent to 60 days’ worth of distribution rewards, and a $10 reactivation fee.

Transferability and Market Dynamics

The capacity to tokenize and transfer Founder’s Nodes grants the community a novel level of flexibility. While there is no official secondary market, platforms such as NFT Harbor offer buying and selling opportunities. However, nodes cannot be bridged to Ethereum, and such features might be considered in the future.

The transfer-ready fee is designed to minimize speculative trading, ensuring nodes fulfill their intended operational functions. Once transferred, nodes cannot be reclaimed, and new owners obtain the legal right to manage them.

Founder’s Nodes are still available for purchase in the primary market, with fresh purchases receiving GalaChain allowances. It is vital for users to handle node transfers judiciously, as the operational status influences eligibility for $GALA distribution.

For more comprehensive information, check out the Gala News.

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