This proposal outlines a new system of transaction fees for core Gala-operated channels. While the addition of a fee structure was inevitable, the GalaChain dev team has created a system that allows independent channel creators unparalleled autonomy and control while delivering lower fees than you’ll find almost anywhere else in the web3 world.
The proposed fees are substantially lower than the fees associated with almost any other blockchain. Still, the proposed system enhances the sustainability of the greater GalaChain ecosystem as it continues to grow, bolstering the economy and giving third party channel operators the freedom and control necessary to grow their own projects.
Transfer Fees
The cost of minting or transferring items on Ethereum varies depending on variables like network congestion, transactional volume and transaction type. While it may cost $2+ (in ETH) to transfer any quantity of a fungible token like $GALA, GalaChain’s initial fee structure would make such a transfer cost only 2-4 cents (depending on the current value of $GALA). We believe that a predictable and more steady transaction fee will be welcomed by the GalaChain community.
Batch Transactions, 1 Fee
On GalaChain, it’s possible to execute large actions with single transactions, such as mass batch minting of tokens. On GalaChain, tokens can be minted to hundreds or even thousands of recipients with a single batch transaction, requiring a fee of only 1 $GALA for the whole batch.
Basically, this fee system will have additional benefits to creators proportional to the finesse and efficiency with which they use the chain. The power of GalaChain can accomplish a lot with a single well-placed transaction, leaving Ethereum in the dust in terms of cost effectiveness for creators.
BatchMintToken Example
If the Ethereum gas fee for minting an NFT is $2, that fee is required for each token that is minted, so minting an NFT from the same batch to 200 different users would cost $400 in gas fees (roughly equivalent to 20,000 $GALA at current value).
On GalaChain, the BatchMintToken transaction would allow the creator to mint all 200 NFTs directly to their recipients for a single set fee (1 $GALA), using 1 transaction alone.
To address these challenges in a way that incentivizes node operators and channel founders, we propose the implementation of a new transaction fee structure specifically for the basic asset channel controlled by Gala. The proposed system does not extend to individual third-party channels.
Each third-party channel operator retains full autonomy to set and manage their own fee structures according to their unique needs and goals. The fees outlined in this document will not impact those independent channels in any way, allowing third-party operators to maintain their independence and flexibility over their own transaction fee models. This distinction ensures that while Gala implements a standardized fee approach for its own basic asset channels, it does not interfere with the diverse and customized economic models that third-party channel operators might choose to implement.
We propose the introduction of a fee system on GalaChain. This fee structure will apply to various transactions and actions within GalaChain’s basic asset channel. The primary objectives of this proposal are to ensure the sustainability of the Gala ecosystem, incentivize responsible usage of network resources, prevent spam and reward channel founders and node operators.
GalaChain Token Transactions (Subject to Fees):
- BatchFillTokenSwap
- BatchMintToken
- BurnTokens
- FulfillMint
- FulfillMintAllowance
- MintToken
- MintTokenWithAllowance
- RequestTokenBridgeOut
- RequestTokenSwap
- TerminateTokenSwap
- TransferToken
User Actions (1 $GALA Fee Per Action):
- Minting currency from mint allowance
- Minting NFTs from mint allowance
- Bridging out currency (note: existing fees apply; future dynamic fees are in development)
- Sending currency
- Sending NFTs
- Paying for orders by transferring funds
- Paying for orders by burning funds
Ecosystem Benefits
- Channel Founder Incentives: Founders of new GalaChain channels will be able to set fees for their own asset channels in the future, receiving a portion of fees collected within those channels.
- Node Operator Incentives: A portion of transaction fees will be allocated to node operators, ensuring ongoing benefits for their crucial role in the decentralization and robustness of GalaChain.
- Referral Incentive: As approved in a prior Founder’s Node vote, all $GALA burned as gas fees qualifies for a direct referral incentive reward. The direct referrer receives 8-10% of the burnt $GALA as a mint allowance, and the second-degree referrer receives 2%.
- Prevention of Abuse: With a moderate fee system in place, abuse of GalaChain functions is actively discouraged. Most blockchain exploits and abuses are related to unreasonably high numbers of transactions, and per-transaction fees will de-incentivize these types of behaviors by potential abusers by increasing cost with transactional volume.*
*In THIS EXAMPLE, a game called Sunflower Farmer nearly “broke” the Polygon chain by monopolizing gas costs, causing transactional fees to drastically and suddenly increase. A system of set low fees will prevent this sort of exploit for a more stable blockchain ecosystem, and Gala will continue to update and tweak this system as needed for long term ecosystem health.
Upon approval of this proposal, the new transaction fee structure will be implemented immediately within the GalaChain basic asset channel.
The initial rollout will apply to transactions on the asset channel, eventually expanding to include owners of other channels in the Gala ecosystem, allowing them to create their own fee structures. Please note that external channel owners will have the ability to set and control their own fees. More details about external channels will be provided with future updates.
Voting Period: 1 week
Approval Requirement: Simple majority (51%)
Eligibility: 1 vote per Founder’s Node
Vote Question
Should a new system of GalaChain transaction fees be implemented to support long term ecosystem health and user incentives?
Yes: I am in favor of the proposed fee structure.
No: I am not in favor of the currently proposed fee structure.
Abstain: I am neither in favor nor against this proposal.
This proposal aims to enhance the efficiency, security and sustainability of the Gala ecosystem through the introduction of a new transaction fee structure on GalaChain. We believe this change will contribute positively to the ecosystem’s long-term health while providing additional incentives for channel founders and node operators. We appreciate your participation and support in this governance vote as we continue to build a stronger, more resilient Gala ecosystem.
Thank you for your ongoing commitment to our shared vision.
FAQs
Question: How will the new transaction fee structure benefit GalaChain users?
Answer: The new fee structure aims to provide lower fees and greater autonomy to channel creators while enhancing the sustainability of the GalaChain ecosystem.
Question: Will third-party channel operators be affected by the proposed fee system?
Answer: No, third-party channel operators will retain autonomy to set their own fee structures, ensuring flexibility in their transaction models.
Question: What incentives are provided to channel founders and node operators?
Answer: Channel founders can set fees for their channels to earn a portion of collected fees, while node operators receive a share of transaction fees for their role in GalaChain’s decentralization.
Question: How does the fee system prevent abuse on GalaChain?
Answer: By discouraging high numbers of transactions through moderate fees, the system aims to prevent abuse and ensure the platform’s stability.
Question: Will the fee system be updated in the future?
Answer: Yes, Gala will continue to evaluate and adjust the fee system as needed for the long-term health of the ecosystem.
Credit: news.gala.com
