🌌The Celestial Floor

Galaxy has implemented a robust mechanism known as the Celestial Floor. This mechanism utilizes the protocols fees generated from every revenue stream within the ecosystem to establish and sustain an ongoing buyback system for the $GLX token. The Celestial Floor operates on a mathematical algorithm that dynamically adjusts based on the total revenue generated by the platform. As revenue streams increase, a percentage of these fees is allocated to the Celestial Floor, ensuring a continuous upward trajectory for the $GLX token's floor price. By linking the token's value to the success and growth of the Galaxy ecosystem, the Celestial Floor not only safeguards against significant market downturns but also aligns the interests of the community with the overall prosperity of the platform, fostering a sustainable and resilient ecosystem for its users.

Let $Pfloor​$ represent the Celestial Floor for the $GLX token, $R$ denotes the total revenue generated by the platform, and $α$ signifies the percentage of fees allocated to the Celestial Floor. The equation for the Celestial Floor mechanism can be expressed as follows:

Celestial Floor Equation

This equation represents the portion of the total revenue allocated to the Celestial Floor per $GLX token in circulation. As revenue increases ($R$), the Celestial Floor ($Pfloor​$) dynamically adjusts to sustain a price for the $GLX token, ensuring that a percentage of fees contributes to the buyback program. This equation captures the innovative mechanism employed by Galaxy to link the token's value to the success and growth of the ecosystem while providing a mathematical foundation for the Celestial Floor.

The Problem

While the idea of systematically burning tokens can sustain demand, it is not true that it generates demand by itself. The buyback and burning mechanism is an artificious design that permanently removes tokens from the system. With burning, the protocol introduces more centralization, all else equal. Thus, an excessive burn over time, especially coupled with a fixed supply, could in turn:

• Decapitalize the token (less circulating may lead to a decreased market capitalization if the price doesn’t react properly to the reduction in the supply)

• Lead to liquidity problems

• Affect the protocol decentralization

• Bring permanent volatility

The Solution

To solve this issue one could consider the following solution:

Burn rate Equiation

Where:

• $𝐶𝐹$ represents the Celestial Floor for the $GLX token.

• $𝑎$ denotes the percentage of fees allocated to the Celestial Floor.

• $𝑅$ signifies the total revenue generated by the platform.

The parameter "a" is bound to revenue projections to control the burning rate of the token supply. For example:

• Up to $100k revenues, $𝑎=0.001$.

• Up to $200k revenues, $𝑎=0.0015$, and so on.

By binding the parameter "a" to revenue ranges, the potential amount burned is more controlled and doesn't linearly depend on revenues, mitigating the risk of burning too much when revenues are high. This approach ensures that the burning process remains manageable and aligns with the sustainable growth of the Galaxy ecosystem.