Everything You Need to Know About Gala Games: The Players, Passive Income Opportunities, NFTs, Virtual Real Estate and Blockchain
Gala Games is a US based game development company currently disrupting the billion-dollar gaming industry with virtual real estate and real-world ownership opportunities. Maybe you’ve read about this digital citadel that sold for the equivalent of $1.6M USD.
If you’re a retail investor, gamer, or just curious about why anyone might pay millions of dollars for pockets of land in a video game, I hope I can help.
I’m new to investing, but passionate about blockchain technology and cryptocurrency investments, which you might know from watching my YouTube channel. What you might not know is that I’m also an indie game developer, and a very avid gamer. Gala Games merges two of my passion projects.
I got into Gala Games fairly early, and I already regret that I didn’t jump in sooner. I’ll explain why. This post will cover:
1. An introduction to Gala Games
2. Gala Games projects and a review of their games for playability and viability
3. Node ownership as a unique opportunity, akin to an investment
4. Setting up and monitoring nodes
From Player to Esquire
Gala Games platforms allow a distributed network of players to own parts of the gaming world. You can purchase pockets of land, and even become a landlord. And, although the company designs the games and the building blocks of the network, in-game assets — meaning any collectables that you win or purchase — are yours to keep, even outside the game. If you win a magical sword, it’s yours. It is a verifiable asset on the blockchain that you can play with in-game, trade, or sell to another person in the form of an NFT (more on that later). In theory, you could even use the asset in another game, as long as it’s compatible.
Imagine taking the power of flight from Super Mario’s racoon tail to Sonic the Hedgehog. This is an incredible concept with real potential to change gaming forever.
Now for the caveat: this is brand new. Gala Games has a series of games in the works, but there is currently only one available to play, called TownStar — an agricultural simulation game. But it could be the future.
Progression Stats
As of March 2021, Gala Games has:
⁃ 15k daily active users
⁃ 220k monthly active users
⁃ ~5000 daily active nodes online
Back to Level One
In the early days of gaming, in the early-to-mid 1970s, the world was much smaller. Players consisted mostly of game developers themselves. The creator of Atari was one of its most avid players. These were passion projects built largely by the target demographic. As the industry developed in the late-80s and especially during the dotcom boom of the 90s, publishers got involved to help finance game development and get them into the mainstream market. This was necessary to really expand the footprint of gaming, but it also changed the landscape completely, making it a hugely profitable industry. Especially for big production titles, typically called triple A titles.
Gala Games is trying to bring back the early days. On their website, their mission statement is to help people supplement their income through gaming by enabling freedom and prosperity through play.
Now, of course, Gala Games is also a for-profit company, and their mission to disrupt and decentralize is also a competitive advantage that could prove very lucrative for them. Still, I believe this is a win-win scenario as players can also make a profit. Now, with current games, assets are only contained on one platform and worthless outside of it.
Let’s take a look at the market and the opportunity.
The Big Bosses
· Gaming is a behemoth industry, valued at $138 billion USD, with blockchain technologies poised to become an evolution in the space
· Gamers spent $30 billion USD a year purchasing assets in games like Fortnite, Call of Duty, Candy Crush, Fifa, League of Legions and many others.
Right now, that money stays with large publishers like EA, Microsoft and Epic, as well as App Store publishers Google and Apple, which take 30% profits from every in-game purchase through the App Store.
Gamers buy in-game items to enhance their experience and improve their game play, but the current set-up doesn’t allow for real ownership. You can’t sell them or even take them out of the game. This has led to black markets.
· The secondary gaming market is worth $50 billon USD annually. This is the buying and selling of games and game assets, often illegally, in places where scammers and hackers can take advantage of you.
This is what makes Gala Games so exciting. If not the whole industry, they will at least disrupt a $50 billion slice of the pie with their NFT-based game asset marketplaces. With a decentralized ecosystem and in-game assets available for real ownership, money flows back into the hands of the people developing the games, the players, and those supporting the network and processing transactions by running Gala nodes.
What is a Gala Node? (Hint, it’s not an investment program)
First, a note on NFTs, which allow players to own their in-game assets. Non-fungible tokens are unique digital items with blockchain-managed ownership. NFTs can store collectibles, game items, digital art, event tickets, domain names, and even ownership records for physical assets. NFTs provide a verifiable record of ownership and give users the control to store, sell or trade those items.
With Gala, you can become a node operator and process transactions on their blockchains, earning their on-chain cryptocurrency, called GALA, as a distribution reward. Occasionally, you might also be awarded a random drop of NFTs. I received one of these drops — more on that in a moment.
Still not sure what a node is?
A node is an application or service that contains a complete copy of the entire transaction history of a blockchain. Every blockchain has a node network, including Bitcoin. Nodes are used to verify blocks to be added to the blockchain. As you make transactions with Gala Games assets, nodes will verify those transactions and add them to the ledger.
Gala Games Nodes perform as a “Triple-Proof Node System,” meaning nodes can perform three types of functions or consensus mechanisms:
· Proof of work, providing hashing power to the system
· Proof of Stake, verifying transactions on the network
· Proof of Storage, providing storage capacity to the network
The system is designed to allocate rewards to node operators dependent on the needs of the network. If the system requires more hashing power, more rewards will be allocated to miner nodes that have large GPUs or CPUs to perform complex computations. If the system requires more storage, rewards will shift to node operators with more storage capacity.
It’s a fascinating, self-balancing system design that will scale efficiently.
Currently there are ~7,500 nodes running around the world at any given time to power that network. For reference, Ethereum, the largest platform for digital finance applications, runs on 11,000 nodes. So you can see how fast the Gala network has grown in a short period since its launch.
Founders’ Nodes, a passive income opportunity
Founders’ Nodes are the first nodes launched with the game. They are unique. They will always be eligible to receive NFTs from all games on the network, and they will receive daily rewards distributions of GALA, the cryptocurrency native to the Gala Games network
These are a limited resource, as only 50,000 are available for purchase.
Each node you purchase entitles you to 1pt from the daily rewards pool. To become eligible for these daily rewards is simple. Run your node for the required time period, currently 6 hours a day. If your node runs for that required time period, you will receive your daily rewards of Gala, and occasionally, random NFT game asset drops as a separate reward.
At the time of writing, one Gala node costs ~$10,400 dollars. The price increases $100 for every 100 nodes sold. Since there will only be 50,000 of them available, the last Founders’ Node will sell for $33,000.
This chart shows how log it takes in hours to move the Gala Nodes price up $100 dollars. Every day or so, it does jump in price, meaning they are being snapped up at a very rapid and consistent pace, at about $100 dollars every two-three days on average.
~8.5m Gala is distributed among node owners each day. As I mentioned, running one node means you get one part of that distribution. If 9,000 nodes were in operation in a day, a single node would receive ~945 Gala.
Given the current price of the Founders’ Node, if Gala maintains around $0.025 value, you’ll have made a small profit within one year.
This is a very conservative estimate, as the price of Gala is likely to rise as more users play these games and the demand for game assets grows. The most aggressive prediction I’ve seen in the Gala Games discord conversation is $1.00 per Gala within the year, but I think that’s a bit too optimistic.
Free digital drops offer extra incentive
In addition to earning Gala, the NFT game assets that are randomly distributed are interesting.
Recently, I received two Arrow Towers for use in the upcoming game, Fortified. On Open Sea, an NFT marketplace, the tower currently sells for $40 dollars USD (link).
As the ecosystem matures and more games come online, Gala will be introducing game specific cryptocurrencies. If you purchased a Founders’ node, you will also be able to receive rewards in these game specific currencies, in addition to the Gala already being received.
This is a very unique opportunity with unknown potential. This is what makes this one so interesting to me.
This is a good time to note: This is not a traditional investment, nor is it a crypto-based speculative investment. If you’re looking for a quick flip an easy profit, this might not be the way to go.
In my opinion, you should only participate if you are interested in the gaming ecosystem and want to foster a world of decentralized gaming. I believe in this, and for me, it’s all about making great games. Gala Games have also said it will put the games before everything else. Keep that in mind, as it is a company run by gamers. With that said, let’s check out the games.
Gameplay
Ultimately, Gala Games is games company. Their content must be fun to play. From the looks of it, the company is developing a balanced portfolio of game styles for all kinds of gamers. Here are the three games we know about.
TownStar
TownStar is an agricultural simulation game, published by Sandbox Games. Like all Gala Games, it’s free to play, with the option to purchase in-game assets.
It was initially developed on Unity, a very popular platform, but was ported over to PlayCanvas to become a browser-based game. This makes the game more accessible to players with a web browser, but without high-powered computers to run these applications.
Farmville, from the early Zynga days, is also a web-based game that saw 10 million daily active users during its heyday.
TownStar is similar to Farmville, in that you manage the production line from planting crops, taking care of animals and shipping your produce out to market to earn money. Profits help grow your farming operation.
The game world looks very much like Earth. You pick a plot of land and start building out your town. The game runs on a six-day cycle. Every Tuesday, the world map is reset and there is a rush to get the best spots in the game, typically places with access to water, just like in real life.
This six-day reset is a very interesting game mechanic. It allows brand new players to start from the same point with the same resources as more experienced players, literally levelling the playing field. It also encourages people to experiment with different play-style strategies, since players are forced to reset their town every six days.
The goal of TownStar is to produce and sell crafts for profit. You can sell wood and wheat right away, but these aren’t big earners. Building out a production line to eventually bake cakes or sell Blue Steel will earn you a lot more money.
The top players after each game cycle earn Gala Tokens, which can be stored in their crypto wallets, used to purchase game asset NFTs, or withdrawn and swapped for other cryptocurrencies on an exchange. The crypto aspect is completely transparent to the gameplay, which is what you would want to see. The average player might not have a deep understanding of blockchain technology or how to manage cryptocurrency wallets, and for mass adoption, you don’t want any burdens of entry.
With 15k daily active users currently playing this game, which is only in beta, TownStar might have the potential to become the next Farmville.
Fortified
Fortified is a tower defense game in early development.
In tower defense games, players set up a base or a series of bases as defenses, while a horde of bad guys attempt to breach the walls. Gala Games have yet to release teasers or game play details, so the mechanics are still unknown.
What’s interesting about Fortified is that it just passed a Governance vote by the Gala Node Operators. Briefly, each game that uses block technology will be voted into the Gala Games ecosystem by node owners. Everyone who operates a node on the Gala Games network can vote on the inclusion of a game. This decentralized governance is one of innovative aspects of Gala Games. Gamers decide which titles are brought into the network.
Back to Fortified: we don’t know a lot about the game, but we do know that it will use the Binance Smart Chain Blockchain instead of the more common Ethereum blockchain. Ethereum has incredibly high gas fees, which makes it very difficult to buy and sell low priced items or allow for micro transactions. To me, it’s exciting to hear that the Gala network will be able to work with multiple blockchain technologies and provide a cheaper mechanism for buying and selling game asserts.
Mirandus
Mirandus is a classic massively multiplayer online role-playing adventure game, powered by blockchain. This is a living RPG. If you’ve read the books or seen the movie for Ready Player One, it feels very similar to this world, with a largescale virtual playing field filled with assets that players own. It is still very early stages for this game, which is meant to be available in 2022.
In Mirandus, cities, buildings and crafted items like swords and armor are owned by players. This includes land deeds. There will only be 1,650 land deeds available in the game. And, shockingly, 54% of these land deeds have already been sold, even though the game isn’t even live (link).
There are 17 types of deeds, from small homesteads to massive citadels. One of these citadels recently sold for the equivalent of $3 million USD, in part because of the scarcity of land deeds. Each deed has a basic layout with walls to protect the area, a home for the land deed owner and plots of land for where other players can place their own buildings.
This game is already creating a lucrative secondary market. On Open Sea, an NFT market, there are a number of Mirandus items for sale — not by Gala Games, but by the owner. Gala Games has its own store, of course, but these secondhand sellers are very interesting at this early phase, a full year before the game is even playable.
This hints that the game is going to be huge. It might be worth snapping up a land deed or buying a shop if you can.
Once the game is released, Mirandus players can craft items and upgrade their homes and shops. Everything in a player’s shop is owned by that player and verifiable on the blockchain. Outside of homes, players can go on adventures, battle monsters, defend themselves against wolves, chat with other players, or have a drink at the local tavern.
These are the games currently in development, though the leadership team has hinted at others.
If you’re seriously considering this passive income opportunity, it’s also crucial to know who is behind it. Let’s meet the team.
Multiplayer Mode: The Gala Games Team
The company was founded in 2018 and has about 20 employees currently listed on LinkedIn. I took a look at the backgrounds and experience of the leadership team. I believe these are some of the people who are fundamentally redefining both the gaming and blockchain spaces.
CEO Eric Schiermeyer, co-founder of Zynga
Eric co-founded Zynga in 2007 and was their SVP of Product for 14 years, spending a lot of his time on monetization and growth. For those of you who don’t know, Zynga was one of the most successful pioneers of web-based social gaming products. The company gained exposure with Farmville in 2009, first within a Facebook Application, and then released a series of hits.
That company scaled from six employees to over 2,000 and went public in December 2011. Since leaving Zynga as his day-to-day job in 2011, Eric, has taken on a lot of advisory roles and invested in various technology and gaming companies. He is considered a legend in the gaming industry for his work over the past 20 years.
President of Blockchain, Wright Thurston
Wright is one of the first major miners in the cryptocurrency space and holder of multiple patents on blockchain technology. He’s been an expert in the space for years, with a level of experience that seems crucial for the development of the Gala Games blockchain network. Wright’s background also seems to cover telecommunications as well as marketing.
President of Games, Michael McCarthy
The Creative Director behind viral gaming hits such as Farmville 2 and Lead Developer of Town Star (the only game currently available to play on Gala Games), Michael is an experienced studio director with 20 years’ experience managing game development projects. He’s been part of many triple A titles and spent six years as Director of Creative at Zynga. After that, four years at Sandbox Games as Games Director
Gala Games is a gaming company first. From his resume, it seems Michael has the experience to shepherd the games forward. Ultimately, it’s the gaming experience that makes a gaming company successful.
Adam Price, CTO
Adam is a seasoned technical leader with years of experience leading architectural and other technical decisions at various companies. Notably for the gaming world, he was previously CTO at Sandbox Games.
After watching several of his presentations online (LINK), it’s clear he’s a smart guy with a great vision for Gala Games and its technical development.
There are other great leaders with Gala Games, but just looking at these four has earned my trust in the leadership of the company.
With decades of combined experience in game development, systems architecture and blockchain technologies, along with the know-how to rapidly scale a tech company from scrappy startup to a large enterprise, there is very strong leadership navigating the Gala Games ship. The leadership seems well placed to capture a huge market opportunity, with industry validation backing them up, specifically their deep Zynga connections.
Where might this team and Gala Games go from here?
Future worlds
At some point in the near future, rewards for providing storage will come online for the network, when Gala Games introduces a decentralized content delivery network using IPFS (interplanetary file system).
This will provide decentralized file storage, with content addressable storage (instead of location-based storage). It provides a secure, distributed and fast way to load game content. Instead of finding items by their location, you can access them by their cryptographical hash. If you are familiar with BitTorrent, this is how that service works.
Gala Games may also introduce a private blockchain. This ledger will be more transparent, and users won’t have to pay the pricey Ethereum gas fees. A private blockchain could also introduce support for micro or gas-free transactions and is likely where they will be minting the in-game currencies for TownStar, Mirandus and other games.
Thanks for reading!
If you want to get started with Gala Games, you can do so here.
If you made it this far, you might want to check out my YouTube channel, where I cover other cryptocurrency investments.
