Original author:@EdisonHuu，@GryphsisAcademy
The outstanding performance of the Bigtime token after its launch attracted the attention of the market. Major chain games were ready to move. The GameFi sector ushered in a small climax. GameFi, which had been dormant for a long time, returned to peoples attention. Among them, Gala Games has led the gains strongly, starting from the stage low of $0.012 on October 19. As of the writing of this article, $Gala is currently priced at $0.025, with a cumulative increase of more than 100%. Why is $Gala so strong? At present, the market has stabilized, the bottom of the counterfeit market has appeared, and the long-dormant chain gaming track is ushering in a recovery. Can $Gala become a value investment target in GameFi? This article will explain it to you.
1.Project Summary
1.1 Introduction to Gala Games
Gala Games is a blockchain game development company founded in 2018, aiming to build a decentralized game ecosystem. Gala Games is both a game development platform and a game aggregation platform.
As of now, although some games are still under development, Gala Games official website has confirmed that 18 games have been launched. The game types include role-playing, simulation management, card, tower defense, shooting and other types. In addition to the popular games in the chain gaming circle this year Spider Tanks, Gala Games also collaborated with traditional gaming platform Epic to launch GRIT, a battle royale game similar to PUBG.
1.2 How Gala Games works and node system analysis
Gala has established exclusive network nodes to maintain and ensure system security. The node system will provide decentralized computing power support, transaction verification and storage services for the game ecosystem. The entire game ecosystem runs on a distributed node network rather than on a centralized server controlled by a single entity. Galas founder nodes will provide power for the operation of the Gala ecosystem. In Gala Games decentralized node network, node users can decide which games can be launched on Gala Games platform through consensus voting. At the same time, all major decisions in the community are determined by node voting.
Gala node operation diagram
2. Detailed explanation of the project
2.1 Team
Gala Games co-founder and CEO Eric Schiermeyer and game chairman John Osvald both came from Zynga. Eric served as CEO of Intermix Media, the company behind Myspace, and was also the co-founder and creative director of Zynga. Like Eric, John spent most of his experience in the gaming industry at Zynga. Zynga, a social gaming service provider founded in 2007, is a global leader in interactive entertainment with an extensive global presence in more than 175 countries and territories, a diverse portfolio of popular game franchises, and a global presence on mobile With over 200.7 billion downloads on devices, the FarmVille series and Zynga Poker are both Zyngas most popular products.
FarmVille series
Warren Marshall and Craig Matchett worked on the games 3D design. Warren is the co-founder and art director of Gala. He once worked at Epic Games and was a participant in the development of the Fortnite game. As for Craig, in view of his achievements in the field of 3D design, Gala officials issued a separate post for his joining. I believe everyone is familiar with the Dead Space series and the Battlefield series. These are all designed by Craig. His works are the result of a natural sensitivity to shapes and colors and an obsessive perspective on research and discovery. He is a 3D Artists in the field.
A look at Craigs masterpieces
Jason Brinks, Director of Blockchain at Gala. On social media on Twitter, Jason has always been the spokesperson of Gala, and can even be said to be a public relations representative, talking to people who follow Gala about everything about Gala. Most of Galas AMAs are also hosted by Jason. Jason once worked for the United Nations, and his main motivation for joining GALA was that making money from games could potentially lift people out of poverty in developing countries. He sees the corruption in these international organizations and hopes that decentralized homemade protocols will eventually replace it.
Jasons Twitter account
2.2 Financing situation
Gala did not conduct ICO or various forms of financing, and all funds for the establishment of Gala were provided by the founders. So we can guess that the creation of Gala games has received strong support from Zynga. In addition, the author personally believes that from a results-oriented perspective, the sale of founder nodes is actually a disguised form of financing. Gala officially issued an article specifically emphasizing that Founder Node is not an investment, there should be no expectation of profit or return in becoming a Founder Node”, perhaps also a helpless move due to the strict regulatory policies of the U.S. government.
2.3 Overview of Gala Ecosystem
Gala is an open platform. In addition to games, the Gala ecosystem has also expanded Gala Film and Gala Music. The future Gala ecosystem will be integrated into Galas own Project GYRI blockchain. In addition, Gala also teamed up with Unity to create the Gala Metaverse VOXverse. The following are some of the more popular games in Galas main game section.
Town Star is a farm simulation management game developed by the Gala team. It is also the first game of Gala Games. The gameplay perfectly inherits Zygnas masterpiece FarmVille series. Players need to use funds to plant crops and build factories, balance consumption and economy, and earn profits by climbing the game leaderboard. In addition, players can also purchase NFT to speed up the output of the farm, similar to recharging.
Spider Tanks is a PVP competitive game played on PC. Players need to purchase NFT game equipment and compete with other players in the game map for team PVP and obtain resources. The game is developed by a Dutch company calledGamediaDeveloped by Game Studio, it is the first game launched on the GYRI project.
3.Mirandus
Mirandus is a fantasy role-playing RPG game where players have complete control and freedom. In the game, players have absolute freedom of choice. They can enter the wilderness alone and fight monsters in the deep forests and dungeons, join one of the kingdoms and serve as a knight in their court, or travel in one of the five great cities. one to build a store. Players’ ownership of in-game assets is a core mechanism. Although the game is not yet online, players’ expectations are high.
4.GRIT
GRIT was launched on the Epic platform on June 6, 2022. It is the first Web3 game to be launched on a traditional game platform. It is similar to the battle royale mechanism of PUBG and the theme is the Wild West. The game production level is superior and the details are of high quality. Players can purchase guns and weapons in the NFT market.
5.Gala Music andGala Film
Gala has moved movies and music to the blockchain and has signed many artists, such as Gala Film’s The Rock and Gala Music’s Snoppy Dogg. Players can purchase NFTs of movies or music albums and watch movies or listen to them. You can get rewards when singing, Watch to earn or Listen to earn.
6.VOXverse
Last June, Gala Games partnered with Unity Technologies to develop the VOXverse 3D metaverse project. VOXverse will integrate all high-quality projects in the Gala ecosystem, including games, music, and movies, centered on the NFT-related digital avatar VOX Collectible Series. Each player in the game will have a VOX collectible avatar. They will use that avatar as their virtual appearance.
3.Gala operations
3.1 Major historical events and price K-line charts
First, lets take a look at the major events in Gala from its establishment to the present.
2019-2020
The Gala team completed early project preparation and planning, including the production and distribution of the hit games Town Star and Mirandus
2020.9
Gala Token starts trading
2021.3.22
The Wall Street Journal published an article about Gala Gamesarticle
2021.3.22
Gala Games announces sponsorship of Mazer gaming
2021.3.27
Reached strategic cooperation with PAC Global. PAC Global is a network built using cutting-edge blockchain technology, which uses proof of stake and deterministic master nodes. This cooperative node exchange plan lays a solid foundation for the safe and efficient operation of Galas nodes.
2021.3.31
Reached a partnership with Polygon
2021.7.10
The node vote passed and Spider Tanks officially entered Gala Games
2021.8.5
Gala tokens were successfully bridged to the BSC chain using the cross-chain bridge P.Network
2021.8.10
VOX NFT sale
2021.9.4
Spider Tanks starts closed beta
2021.9.13
Gala Token Listed on Binance
2021.9.18
The launch of Town Stars P2E reward token Town Coin officially opened Galas way to earn money by playing.
2021.10.7
Announced cooperation with Wemade Tree to jointly promote the global development of blockchain games.
(The MIR series of games released on Wemix are representative works of Wemade)
2021.11.6
Town Star node is online, similar to the founder’s operation method and function
2021.11.12
Officially announced that Mirandus VOX will be launched on December 6
2021.12.12
Three new games are launched on the Gala platform, including the business simulation game Legacy, the multiplayer apocalyptic survival game The Walking Dead: Empires, and the AAA first-person design game LAST EXPDITION
2022.2
Gala Music is officially launched. The Gala ecosystem has expanded from games to the world. It has officially announced that it has cooperated with the famous rapper Snoop Dogg to deploy his latest album (BODR) on the blockchain, and the tracks will be sold as NFTs.
2022.5
Previewed the release of Gala’s own blockchain Project GYRI, and the future Gala ecosystem will be integrated into this chain
2022.6.6
Gala announced its cooperation with Epic Games, and Epic Mall officially announced the launch of the Web3 battle royale game GRIT. This is a historic cooperation. Web3 games have begun to become mainstream, and the worlds gaming landscape has begun to change.
2022.6.6
Gala Film officially launched
2022.11.4
Hackers discovered that the P.Network cross-chain bridge configuration was incorrect and launched an attack. They issued unlimited pGala on BSC and recharged it to enter the exchange for arbitrage. This incident caused Galas largest drop of 30% that day. Although the relevant damaged users were subsequently compensated, it caused a lot of FUD in the community.
2023.1.9
Gala announced on social media that Gala Film is producing two films with well-known actors Dwayne Johnson and Mark Wahlberg. This tweet has since been deleted for unknown reasons.
2023.3.31
Establish a strategic partnership with Huobi to communicate and cooperate in Web3 ecosystem construction and community building
2023.5.15
Gala tokens are used for Gala (V2) contract replacement and upgrade
2023.8.17
Nodes voted to adopt new governance proposals, reduce the reward points obtained from multi-node operations, and encourage decentralization of node operations.
2023.9.4
The Gala Games team has fallen into internal strife. Founder and CEO Eric Schiermeyer and Lianchuang Write Thurston have filed lawsuits against each other, claiming each other to have stealed money and misused funds. The $Gala assets involved are worth up to US$730 million.
3.2 Business operation data analysis
Galas business segment mainly consists of two parts - the sale of founder nodes and the sale of game NFTs. It is worth noting that Gala’s official website is actually relatively centralized, and the data in the store is not linked to the chain, so we will still use the official website data as the main reference for analysis here. First let’s look at node sales.
Galas official website shows that the number of active nodes has reached 44,854. Active nodes refer to founder nodes that run the Gala server for more than 6 hours a day and receive Gala token rewards. The actual number of nodes will definitely be more than active nodes. The total node limit is 50,000. The earliest founder node qualification is priced at 2,000 US dollars. After 19,000 nodes are sold, a gradual price increase model will be adopted. The price will increase after every 100 nodes are sold, so the price becomes more expensive as the nodes are sold. , those who buy not only have to bear the high price, but also face the problem of a longer recovery and even profit cycle caused by the founder node reward being halved on July 21 every year. Gala has sold 44,000+ nodes at this time, which is undoubtedly a success in terms of node sales.
Then there is Gala’s NFT sale. According to the official website, more than 26,000 NFTs issued by Galas first level have been sold. The more important NFTs in the basic game will be sold out in a short time. We have also made a more detailed table on the royalty income of Galas most popular series of NFTs in the secondary market.
There are many Gala NFT series, and series with less transaction volume in the secondary market are not included. We can see that Gala’s overall royalty income is quite considerable regardless of whether it is the primary issuance or the secondary market.
3.3 Community operation data analysis
In terms of social media, Gala Games currently has 466,000 followers on Twitter and about 200,000 members in the official Discord. Although it is currently a bear market, every timeGala GamesOfficial recommendation or “public relations”Jason Posting a tweet on Twitter, the interaction rate in the comment area is very high, and the community activity in the official Discord chat group is also very high.
Gala Games Twitter Page
Gala Games Discord Chat Channel
4. $Gala Token
4.1 Token usage
The current main uses of $Gala are: purchasing founder nodes and purchasing in-game NFTs. At the same time, the official also stated that in the future Galas Project GYRI will increase the role of Gala tokens in the ecosystem and empower it.
About the node: The current founder node price on the official website is about 5 M Gala, which is equivalent to about 100,000 US dollars at the current market price. After purchasing the node license, users can run the founder on a personal computer or virtual private server. Node without paying any tokens as collateral. The maximum number of founder nodes issued is 50,000. Once purchased, it is permanent and cannot be resold in the secondary market. The current number of active nodes has reached about 44,000. Purchasing a founder node with Gala is also similar to mining. The node is a POS node. Half of the Gala produced daily will be distributed to the founder node. If you keep the node running for at least 6 hours a day, you can get the reward points for the day. , the rewards you can get are determined according to Gala’s official points system. The longer you run, the more rewards you get. In addition to the daily Gala output, founder nodes will also receive Galas game tokens (such as Town Stars $Town) and randomly allocated game NFTs as rewards. Every year on July 21st, the daily Gala output will be cut in half.
Official website node price
4.2 Token Economic Model
The maximum supply of Gala is 50 billion. Before January 13 this year, it only included daily output. Half of the daily output of Gala was allocated to the founder nodes according to the mechanism, and the other half was given to the Gala Games Conservatorship. Understood as a community financial fund to support the development of the Gala Games project, the daily output of Gala will be halved on July 21 of each year. What should be noted here is that the $Gala allocated to the founder node every day is not directly deposited into the wallet account by the project party, but the node needs to mint it on the official website according to the daily allocated amount.
In addition, in order to solve the problem that under the current model, the daily rewards of founder nodes are halved every July and reduce the enthusiasm of founder nodes to operate, Gala launched the PAY-BY-BURN burning mechanism on January 13 this year. , when Gala is used to purchase and pay on the platform (excluding nodes), the Gala used for purchase will be burned, and the same amount of Gala will be distributed to the founder node while being burned. We know that Gala originally used for purchase will most likely flow to the project party. Regardless of whether the project party uses it to support project development or sell it in the secondary market, the control rights are with the project party, and the PAY-BY-BURN mechanism is also equivalent to The tokens that the project party should have obtained are transferred to the nodes, which increases the node income.
$Gala carried out a smart contract upgrade from the original $Gala token to the new $Gala token on 5.15 this year, which is the Gala V2 upgrade. Pictured aboveKanbanIt accurately records the daily casting quantity and burning volume before and after the contract replacement, as well as from the start of Gala casting on September 11, 2020 to the present. It is currently the 948th day since the casting started. The total casting volume is approximately 48.3 billion, and the total circulation The supply is approximately 27.3 billion, and the maximum supply is still 50 billion.
Combined with $Galas economic model, based on this burning mechanism and $Galas output being halved every year, once a hit game is developed and demand increases, $Gala will easily become a deflationary model in the future. As mentioned above, the project team will destroy tokens from time to time. For example, on the day of contract replacement on May 15 this year, the Gala team directly destroyed nearly 21 billion $Gala in hand (see the picture below). The reason is that although Gala officially stated that this income is used to support project development and fund the ecosystem , but many members of the community still regard them as token economic risks for the project as a whole. In short, Gala believes that a large-scale token burn will help reduce the concerns of holders who may be worried that the Gala team will sell their tokens in large quantities, causing the price to drop.
4.3 Analysis of currency holding addresses
Data source: Etherscan, Nansen
According to data, as of November 22, 2023, there were 18,726 $Gala currency holding addresses on Ethereum. The top 10 addresses account for 42.81% of $Gala, and the top 100 currency-holding addresses account for 73.26%. Most of the top 10 addresses are exchange addresses.
Data source: Scopescan
At the same time, according to Scopescan data, $Gala’s holdings in CEX account for 32.27% of the total, and in CEX, the exchange with the largest holdings is Binance. Binance is also Gala’s largest currency holding address, accounting for 21% of the total.
4.4 Financial analysis
Binance $Gala spot price candlestick chart Source: Trading View
According to Trading View data, in Binance spot $Gala bottomed out on October 19, and began to increase in volume in the subsequent market. The current price is about $0.025, rebounding about 100% from the bottom, and the bottom formed a standard W bottom structure. The neckline touches the strong support point of the previous downtrend. We can easily see that $Gala has most likely bottomed out and is ready for the bull market.
$Gala contract position data on Binance
According to Binance contract data, the recent long-short position ratio, the long-short ratio of large investors positions, and the long-short ratio of the number of large accounts are all much greater than 1. We can clearly see that both large investors and retail investors are relatively bullish on the future of $Gala Prices show a positive attitude.
5. Track analysis
5.1 Current status of GameFi track
The track that Gala belongs to is the GameFi track. GameFi is a combination of the two words Game (game) and Finance (finance), which means a blockchain game that provides players with economic incentives and allows them to earn while playing. The GameFi ecosystem uses cryptocurrency, non-fungible tokens (NFT) and blockchain technology to create a virtual gaming environment. Players can usually earn in-game rewards by completing tasks, playing against other players, and completing levels. They can also transfer Game assets are transferred out and traded on cryptocurrency trading platforms and NFT markets.
GameFi Market Cap Source: Footprint Analytics
Number of Gala active users Source: Footprint Analytics
As can be seen from this figure, although there are signs of recovery in chain games in recent times, overall, the GameFi track has always been in a sluggish state from 2022 to now, and the number of active users of Gala (this data comes from The number of addresses for contract interaction on the chain, that is, the addresses used for purchases using Gala, is definitely inaccurate for the centralized Gala platform and is definitely less than the actual active users, but it is of reference significance for our trend judgment here. ) has also undergone a significant decline and has maintained a stable state for a long time.
If the GameFi craze in 2021 is the result of sufficient funds and speculation in the bull market, then the current price of GameFi Token is still at the bottom stage where the price has returned to value after the bubble burst and has stabilized.
5.2 Gala’s advantages in the GameFi track
The basic logic of the GameFi tracks hype in the last bull market was the P2E earning mechanism. Because playing games can make money, chain games have attracted a large number of people to flock to it, and token prices have risen. Gala also took advantage of the P2E mechanism and achieved a thousand-fold increase in the last bull market. Why put quotation marks around the word rub? Because the concept of the Gala team is different from that of most chain games, Gala does not actually focus on P2E. Take Town Star as an example. Although it is free to play, it is extremely difficult to balance resources and players can easily The game has fallen into a deadlock in operation, and the game pays more attention to the players gaming experience rather than making quick money. Galas true vision has always been to make blockchain games that people really want to play. This is the original intention of the Gala team that will never change.
How to understand? That is, Gala wants people to play blockchain games not because they can make money, but because the games are really fun. While most Web3 game companies such as Immutable Kong came to talk to people about his vision of making blockchain games you really want to play.
In addition, in terms of the game RD team, Gala Games’ project team is one of the few well-known developers in the traditional game industry in the blockchain game field. Except for Jason, the blockchain director, the other team members have basically worked in top game manufacturers. of. Compared with other chain game teams, Gala’s game production and delivery levels are obviously superior.
6. Possible risks in project development
1. Gala If you want to develop high-quality and truly fun blockchain games, the most important thing to note is that the development cycle of the game may be longer, which is not conducive to the increase in token demand in the short term.
2. Unlike other Web3 projects, Gala Games is more like a Web2 game developer. The official website and store tend to be opaque and centralized.
3. Whether Gala can surpass projects such as Immutable X that focus on underlying infrastructure construction through its own Project GYRI, and whether it can meet the expectations of game developers to attract more developers, remains to be considered. The construction of GYRI will have a great impact on the Gala ecology.
7. Summary
In order to reduce the concerns of holders, 21 billion $Gala was destroyed, and in order to support node operations, funds originally belonging to the team were allocated to nodes in disguise. We can all see that the Gala team really wants to do a good job in the project and really wants to go in the long-term direction. Go build, for $Gala holders, with the benefit of the community first.
Secondly, $Gala’s currency holdings are relatively concentrated, and it has released a huge amount to increase. It has completed the bottoming and has broken away from the bottom. It is also easy to see from the contract position data that the short-term bullish willingness of large investors is quite strong.
At the same time, we look back at Treasure Daos hit game The Beacon, GMT running shoes, and even the P2E concept. After experiencing the hype, they will eventually become as useless as the current situation of GameFi. Whether it is traditional games or Web3 games after the boom, in the future development, I believe that the P2E mechanism is just a bunch of fuel to help, and to truly make a good game, make games like League of Legends, PUBG, or Tombs. Games like Shadow and Assassins Creed, this is what attracts players to stay for a long time and enables long-term stable development of game projects. This is the endgame of the game industry.
The game is fun, the number of users increases, the demand for in-game items increases, the demand for $Gala increases, and the token price naturally increases. The current price of $Gala has bottomed out and we have emerged from the bear market. If you are optimistic about the GameFi track and can reasonably control risks, $Gala is undoubtedly a currency worthy of value investment. I believe that with Galas structure and vision, it is only a matter of time before it can create a truly fun Web3 hit game and retain users for a long time.
References
1.Gala: Entertainment that empowers
statement
This report is produced by@GryphsisAcademystudents@EdisonHuu,exist@CryptoScott_ETHOriginal works completed under the guidance of. The authors are solely responsible for all content, which does not necessarily reflect the views of Gryphsis Academy, nor the views of the organization that commissioned the report. Editorial content and decisions are not influenced by readers. Please be aware that the author may own the cryptocurrencies mentioned in this report. This document is for informational purposes only and should not be relied upon for investment decisions. It is strongly recommended that you conduct your own research and consult with an unbiased financial, tax or legal advisor before making any investment decisions. Remember, the past performance of any asset does not guarantee future returns.
