All rocket launchers are getting a buff, so not sure how much it will effect the total damage. Someone worked out the total damage for a full loadout for each exotic heavy, and gally wasn't top of the list anyway.
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I saw that post Dragons breath destroyed Gally Only reason gally was used was because of tracking and grenade and horseshoes
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cause its blast radius isnt the largest the wolf pack makes it overpowered but thats why people like it and yes blast radius effects damage closer to the center of the blast the more damage, larger blast radius more damage