What is Gala crypto and what is it used for?

Gala crypto usually means GALA, the token of the Gala ecosystem. Gala started as Gala Games, a company making blockchain-based games, and has expanded into music and film. Its games, NFTs and token run on its own blockchain, GalaChain. For the wider idea behind games like these, see our guide to web3 gaming.

What is Gala Games crypto?

Gala Games was co-founded by Eric Schiermeyer, who also co-founded the mobile game company Zynga, along with Wright Thurston and former Zynga creative director Michael McCarthy. The Block reported that Schiermeyer and Thurston later sued each other in a dispute over company funds and a 2021 token theft.

According to the GalaChain site, titles on its network include Champion's Arena, Town Star, Last Expedition, Dragon Strike, Mirandus and Vexi Villages. Gala Music and Gala Film also run on the chain. Some games, such as Champion's Arena, use NFTs for characters and items.

What is Gala crypto used for?

GALA works as the currency of the ecosystem. Since September 2024, Gala has charged a fee of 1 GALA for user actions on GalaChain's main asset channel, such as sending tokens or NFTs, according to a report on Gala's announcement. Those fees are burned, which removes them from supply. Referrers and the founders of new channels can also earn a share of fee-related rewards.

GALA also rewards people who run Gala's Founder's Nodes, which help validate transactions. Decrypt reported that node rewards are tied to a supply-based halving schedule, so changes in supply affect how much node operators receive.

What does Gala crypto do on GalaChain?

GalaChain is a layer 1 blockchain aimed at entertainment. Its site says it uses proof of authority, a model where a limited set of approved operators produce blocks, which keeps fees low and energy use small. It offers developer tools so studios can build games on it. GALA also exists on Ethereum, and moving it between chains uses a bridge.

What is the history of the Gala coin?

In May 2023, Gala completed a switch to a new "V2" GALA contract and then burned almost 21 billion tokens from its own reserves. A token burn like this takes tokens out of circulation for good. Gala said the move was meant to ease fears that the company could sell a large reserve.

On May 20, 2024, a wallet with admin access to the GALA minting contract created 5 billion new GALA and sold about 600 million before Gala blocked it. About 5,913 ETH from those sales was returned the next day, and the remaining 4.4 billion GALA were frozen. Gala's CEO said its internal controls had failed. The episode shows that tokens controlled by a company carry risks tied to that company's security and decisions.