GalaChain Enables Founders Node Tokenization as NFTs
Date: 2024-10-17 Author: Henry Casey Categories: CRYPTO PAYMENTS, BUSINESS
Recent changes to the Gala ecosystem have enabled the tokenization of Founders Nodes as non-fungible tokens (NFTs) on the GalaChain platform, Gala News reports. Users can now transfer nodes, giving them more freedom and control.
Founders Node Licenses
Previously, Founders Node licenses were tied to accounts, making them untransferable between users. However, in April 2023, the decision was made to tokenize nodes, opening the way for their transferability.
Founders Node licenses can now be issued as GalaChain permits, which can then be converted into NFTs. This process has already begun and will be completed soon.
Nodes as GalaChain Permissions
Once a node is converted to GalaChain, it becomes a token in the user’s account. While the node cannot be transferred immediately, it continues to participate in the daily $GALA distributions. Users who wish to make nodes transferable must pay a special fee. During this time, nodes will not receive $GALA rewards until they are reactivated.
Tokenization Fees
Tokenizing Founders Nodes requires the payment of several fees, which are collected in $GALA and burned to support the ecosystem. These include a $25 fee to convert to NFT, a transferable fee equal to 60 days of rewards, and a $10 fee to reactivate the node.
Transfer and Market Dynamics
Tokenizing and transferring Founders Nodes provides users with a new level of flexibility. While there is no formal secondary market, platforms like NFT Harbor allow you to buy and sell nodes. However, nodes cannot be moved to Ethereum, although this is being considered for the future.
The transfer fee is intended to prevent speculation and ensure that nodes are used for their intended purpose. Once transferred, nodes become irrevocable and new owners gain the legal right to operate them.
Founders nodes are still available for purchase on the primary market, and new purchases are licensed on GalaChain. It is important to monitor the status of nodes closely, as their operation affects the ability to earn $GALA rewards.
