I've just been giving zGALI some thought...
Can anyone explain why there is a fee to transfer GALI into zGALI, but not the other way round? Perhaps it is to ensure that you are making a conscious, considered decision when going down the privacy route?
Also, going back to when zerocoin was activated, why is it that there had/have to be a certain number of zGALI minted/on the network before you could/can exchange zGALI back to GALI?
Simple answers please otherwise I won't understand (as you can probably tell from the wording/nature of my questions!).
No fees are because it is an incentive for users who start to use much more complex private coin staking with zPoS and in case of troubles requires different investigation than public staking. Another reason for no fees are that you can convert as much as you want to zGALI but if you convert back or send to a GALI address you can include max 7 spends in a single transaction.
There are zGALIs before activation block because we forked it "as is" from PIVX and forgot to set SPORK_16_ZEROCOIN_MAINTENANCE_MODE and in PIVX exists previously 2 versions of zPIV (v1 without zPoS and v2 with zPoS). Some code for Zerocoin (especially some block heights) have been hardcoded into the source. In our case it results in the following that first zGALI mint is in block 247432.