Why I purchased a GALA node – the future of decentralised gaming.
Recently I purchased a GALA games node for just over $4,000. I can imagine most of you are scratching your heads and wondering what a GALA node is. Following a number of questions from friends and other members of the crypto and gaming space, I thought I would write this blog to help others understand why I made this investment.
GALA Games
GALA games was set up by Eric Schiermeyer, who already boasts an impressive track record as he is the co-founder of Zynga. GALA is a new type of gaming platform that aims to be fully owned and operated by its’ players through the power of decentralised nodes.
The gaming platform aims to achieve three main goals;
1. Games developed on the platform will always be free to play
2. The platform will be decentralised and will be controlled in a democratic fashion by the node holders, who will be expected to vote on the direction of the platform, along with being the ones who are rewarded for the success of the gaming platform.
3. Anything that a player earns, wins or finds in a GALA game will truly belong to that player. Imagine finding a super rare sword in a game of Zelda and then having the ability to actually sell it on an open marketplace? This is a revolutionary step in the gaming world where players can truly monetise their in game play for real $$$.
Gala currently has 1 live game called Townstar, but the game that is creating mass excitement is Mirandus – release date expected late 2021. Set in a massive world ruled by five monarchs, Mirandus gives players complete freedom of choice, including the ability to acquire, utilize, and sell assets ranging from a humble land holding ($50) to one of five ancient citadels ($500,000). Players will have a plethora of in game choice, they can set out into the wilderness to try their fortunes against the monsters of the deep woods and dungeons, or join with one of the monarchs to serve as a knight in their court, or even set up a weapons shop in one of the five great cities of the realm. You can find more about Mirandus here but trust me, it is going to be epic!
What is a GALA node?
Anyone with a computer can purchase a node. Once purchased you will receive a link to download the GALA node software onto your computer. Put simply, the node will work collectively with other nodes and act as the backbone, life, soul and heart of the GALA gaming platform. Nodes will be responsible for hosting the gala server, voting on the future direction of the platform and much more.
Will the node slow down my machine?
I leave my node running throughout the day and can honestly say I do not even notice it. The caveat here is that once the GALA platform grows, computational power requirements may increase, but the financial compensation of owning a node should also increase.
How much does a GALA node cost?
As of the time of publishing this blog (19th Feb 2021) a node can be purchased for $5,100. Approximately 22,100 nodes have been sold to date and there is an absolute finite supply of 50,000 available.
For every 100 nodes sold, the price of a node will rise by $100. For example, nodes 22,101 – 22,200 will cost $5,200, nodes 22,201 – 22,300 will cost $5,300 and so on and so on. The last node, or the 50,000th node, will cost $33,000. At some date in the future, it will be possible to sell your node on a secondary market, but for the time being nodes can only be purchased from GALA.
Nodes are selling at a rate of 100 – 200 per day so I strongly believe all nodes will be sold before the end of this year, possibly even earlier.
What are the current reward for node operators?
Node operators currently enjoy a daily reward of GALA tokens providing their node is online for 6 hours a day.
Until the 21 July 2021, approx 8.5m GALA will be distributed to node operators each day. The amount that is actually distributed to each node operator fluctuates depending on how many nodes are online along with other factors, but on average, I have been receiving around 1,500 GALA per day. On July 22 2021, the distribution pool halves and only 4.25m GALA will be distributed to node operators each day. The annual halving of the GALA distribution will continue until the entire 50 billion GALA tokens are released into circulation. As more nodes are acquired, the daily distribution of GALA per node will obviously drop.
In addition, node operators can randomly be selected to receive in game items for Mirandus such as potion shops, weapons etc – all of which will truly belong to the node holder will the ability to even sell them on opensea. These in game items are called NFT (non fungible tokens) and will be kept on a blockchain. If you are interested in learning a bit more about NFTs click here.
What are the future benefits for node operators?
Once the platform is in full swing (it is still in development) node operators will receive a share of the profits derived from the games and will have the power to vote on how the platform will be run. This is where I truly see the return on investment opportunity here. Any in game purchases, advertising income, or even commissions on the transfer of the "in game assets" are just a few income sources that a node operator could look forward to in the future. Do note, this is just my speculative view, but the general consensus within the community is that node holders will be the ones who financially benefit from the platform.
What can I do with my GALA tokens?
You can do several things with your GALA tokens;
1. Sell your GALA at a participating exchange such as Bitrue for USD. As of the 19th February, 1 Gala is trading at around $0.02.
2. Hold your GALA in anticipation of the price appreciating.
3. Use your GALA to purchase in game items such as land and buildings for the upcoming Mirandus game.
I should point out that GALA is the native cryptocurrency of the platform and will be the in-game currency for ALL games produced on the platform. In theory, the more popular these games become, the more in demand the GALA coin will become thus driving its’ price up.
What is the GALA node referral system?
In order to grow the network and raise awareness, GALA have introduced a referral system. For each node that is purchased under a referral code, the referrer will receive a one-time GALA payment of x10 their daily reward. At today’s daily reward rate this is approx. 15,000 GALA/$300. Furthermore, the referrer will receive 10% of the referree’s daily reward going forward. As a quick example, let’s assume Bob purchases a node under Alice’s referral code on the 19th February. On the 19th Feb & the 20th Feb, the daily distribution for node operators is 1,500 GALA.
Alice's GALA rewards on the 19th February
Daily reward = 1,500 GALA
One time referral reward = 15,000 GALA (1,500 x 10)
Daily referral reward = 150 (1,500 x 10%)
Total GALA= 16,650
Alice's GALA reward on the 20th February
Daily reward = 1,500
Daily referral reward= 150
Total GALA= 1,650
Bob's GALA reward on the 19th February
Daily reward = 1,500 GALA
Bob's GALA reward on the 20th February
Daily reward = 1,500 GALA
What kind of Return on Investment (ROI) can I expect?
As mentioned above, I am currently earning around 1,500 GALA/$30 per day for having my node active. At this rate, it would take 170 days to repay the node ($5,100 / $30). This equation is subject to two variables 1) the price of GALA against the $ and 2) the number of nodes online. Obviously the daily rewards will drop as more nodes are purchased. As an estimate, I think it could take anywhere from 6 to 18 months before the node is repaid.
However, in my opinion, the profits of owning a node will truly surface once the GALA platform is active and a large number of gamers are on the platform. It is difficult to quantify this figure, but in 2020, the worldwide revenue of the gaming industry was estimated at $37 billion. Even a 0.5% share of this would see $180 million flowing through GALA. With the launch of Mirandus and potentially other RPGs, I strongly think this is possible. So whilst I cannot quote exact ROI %, I am confident the node will, as a minimum, pay back its' initial cost within the next year or so. Anything beyond that - well your guess is as good as mine. Note, nodes acquired further down the line will have a greater cost thus increasing the payback period.
Finally, the node could be sold on a secondary market. The price will be driven by supply and demand but given that the last node will be sold for $33,000, there is room for a decent profit margin here.
What are your non financial reasons for purchasing a node?
Whilst my primary motive for purchasing a node is a financial one, I also like the idea of a gaming platform being owned, controlled, and operated by the players. The thought of being able to vote on the development of a game on a decentralised platform strongly appeals to me. What's more, the idea of genuinely and indefinitely owning in game assets (such as a magical sword or elixir potion) is another gravitational pull by the GALA platform.
Final thoughts
From a financial perspective, I firmly believe in the ROI potential of a GALA node and as a minimum I am confident that I will recoup my initial investment. I am also very optimistic that there could be some long term income streams from owning a node.
From a gaming perspective, I am incredibly eager to be part of a new revolution within the gaming industry, where the players of a game are the ones who truly have the power. Also, the idea of a real world environment (such as owning land and businesses like a weapons shop) fused with the endless imagination that is often found in these RPG games is fascinating.
With the launch of Mirandus, and other games on the platform I think GALA has a strong future. However, I am aware that my investment is highly speculative and will ultimately depend on whether the games on GALA are a success and can captivate the mind of today's gamers.
I want to buy a node, can you help?
If you are interested in purchasing a node I am providing my referral link here. If you do decide to acquire a node under my referral, I will happily give you 50% of the one time referral fee (at today's rate this is worth around $150). Kindly message me on twitter (handle chris_crypto1) with evidence that you have acquired a node licence under my referral code, and I will send you your share of the referral fee.
But please, please, please, make sure you fully understand what you are purchasing and understand that your capital is at risk. Whilst this is a rather unique opportunity, please do not think this will be a "get rich quick" scheme - it is not.
Disclaimer
None of the above should be taken as financial advice.
I do own a Gala node and the cryptocurrency GALA.
I am not affiliated to GALA games in any nature.
I am a chartered accountant but also a geeky gamer. :)
