Before you get all worked up, the word investment has multiple accepted definitions, like many words in the all-confusing English language. In this case, the one the S.E.C (Securities and Exchange Commission) cares about is all that matters.
Investment - The action or process of investing money for profit or material result.
What's an Investment, and What is Not?
First, the answer is within the question. Owning a node license and operating a node are the results of a purchase, not an investment. As an investor, you can invest in many things, such as various securities, bonds, the stock market, real estate, etc. When you purchase a car, the level of security you feel in your decision to do so is irrelevant. An automobile is not an investment. Purchasing a better quality car may eventually save you some money, and will most definitely prove useful to you in the future, but it's not an investment.
Your time is not an investment either, even though the word is often used metaphorically in that sense. People may say things like "learning this new language is an investment in my future," but clever phrasing is not enough to make something an investment.
Investments come with an expectation of delivery of a return or profit in the future. That's why when companies are bravely developing into uncharted territory the way Gala Games is doing, they must carefully avoid this word. Purchasing a license to operate a Gala Games node should come with no expectations, and it is by no means guaranteeing a profit or return in the future.
If Gala Nodes aren't Investments, What Are They?
Gala Games (as you probably know by now) has big plans to disrupt (revolutionize?) the world of gaming. They are already doing this by empowering players all over the world to own their gaming experiences as they build the soon-to-be massive Gala Games ecosystem. They already have one live play-to-earn game in the hit Town Star, created by some of the same minds behind Zynga (Farmville 2, Words with Friends), and they're just getting started.
An important part of creating a player-owned game company is the element of decentralization, and this is where nodes come in. For a network to be decentralized by blockchain technology, the computing power to run the network must be distributed throughout the network. The intersection points of this data are called nodes, and Gala Games has made it easy for anyone with a computer to operate one through lightweight software.
A Contribution
The most important reason for someone to purchase a Gala Games node is to support the future of the company. The nodes will eventually be used to shoulder the computing burden for the network when it becomes to large to be centralized, but for now, licenses to operate these nodes are being sold by Gala Games as a product.
The plan to empower players must start with contributions from those same players. By building a rewarding structure and incentivizing node operation for those who believe in the future of the company, potential growth for the company is far greater than that from seeking funds from venture capitalist firms. If the players are the ones to be ultimately earning the rewards, it seems entirely appropriate and fitting to accept and encourage contributions from those who share the vision of Gala Games: The players.
A Commitment
Running a Gala Games node is almost like putting your computer to work as an employee. Among the many upsides to this outlook are the facts that you needn't award it with lunch breaks, vacations or dental care. A computer can be made to work long hours without getting overly tired, and it won't hold it against you as long as you give it the hardware it needs.
In the Gala Games ecosystem, node operators are considered an integral part of operations. Their opinions are highly valued, and they are even given voting governance over many choices about the direction of the company. In the future, they will also be relied upon to keep the gigantic Gala Games network running smoothly. It is important that the operators do not misjudge this responsibility; they are far more important than many of them realize.
A Rewards Machine
Rewards are an essential part of the mission of Gala Games. Everything in the entire ecosystem is based upon incentives and rewards, and node operation is no exception. GALA, the token of Gala Games, is always initially created as one of these rewards, and only to the node operators of the ecosystem.
GALA Tokens
Each day, GALA is fairly distributed to each operator whose node was running for at least 6 hours in the 24 hour period. Based on a point system that offers different incentives such as direct referrals operating nodes, each node is given a portion of the daily GALA distribution pool. Each day, 34,246,575 GALA is created and distributed to all active nodes based on this system. Every year in July, there is a halving event that reduces GALA production by half.
NFTs
As the supply of GALA being created and distributed is reduced through the years, the number of games in the Gala Games ecosystem will always be growing. Each of these games will involve certain NFTs, some of which can be purchased through the Gala Games store, and others that will be more exclusive. Many of these NFTs will be distributed to node operators in addition to their GALA distributions.
As time goes on, the balance will shift from more GALA rewards to more NFTs. Gala Games is moving fast, with plans to release at least 2 more (already announced) games still in 2021. They have not given any indication of exactly how many games will be added to their ecosystem over the next ten years, but my guess is that there will be a lot.
Daily GALA Reward - Date
34,246,575 - Until July 21st, 2021
17,123,288 - 2022
8,561,644 - 2023
4,280,822 - 2024
2,140,411 - 2025
1,070,205 - 2026
535,103 - 2027
267,551 - 2028
133,776 - 2029
66,888 - 2030
By mid 2030 (when we are all riding around in flying cars, right?), the amount of GALA being distributed each day to operators of nodes will be only a fraction of what it is today, but it's anybody's guess what kind of NFT rewards will also be included. Additionally, contributors to the network will always be able to vote on important decisions and share in company governance.
Ownership
I'm not here to tell you how to spend your money, but to simply lay out the facts. This is not investment advice, because this is not an investment. As I have described above, ownership and operation of a Gala Games node is a purchase, a contribution, a commitment, and a responsibility. There are absolutely rewards associated with it, and those rewards can and should be very exciting, but they should never be thought of as an entitlement or an expectation.
BEGIN HERE by Creating a Gala Games Account.
HERE is another article I recently published about Gala Games Nodes, with more links.
Feel free to ask more questions in the comments to this post, or find me in Discord. I'd be happy to provide as many details as you need to help you make an educated and informed decision. I'm on the hunt for people who share the vision of Gala Games to empower players and be part of the Gala ecosystem as we look toward the bright future!
Thanks for reading Non-Fungible Stew!
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