AVA introduces game-changing Governance and Community pools based off Revenue!

Xen
Xen
Jul 31, 2021 · 8 min read

Opinions and views expressed are solely that of my own. Always perform your own research on all topics including local regulations. Not Financial advice. Disclaimer: I hold some of the tokens mentioned in this article.

The Quick Details:

Travala.com is introducing a community voting pool in AVA based on the monthly revenues. Each month AVA will be purchased/Converted (from market/bookings) to fund the pool. Further increasing demand.

https://blog.travala.com/travala-com-governance/

Some of the proposals for the community pool include:

  • Creating an ERC-20 version of AVA allowing us to expand the use cases of AVA, reach new user bases and grow the number of AVA token holders
  • Creating liquidity pools on different DEXs, such as Uniswap, Pancake Swap, Sushi Swap, and Balancer
  • Entering into DeFi and CeFi partnerships
  • Travala Smart card with global airport lounge access
  • AVA farming for NFTs, and much more

A few points on why I’m so bullish on this move:

Community pool:

The Shake up we didn’t know we needed.

The below is my personal interpretation of the flow. In short 30% of the Net Booking revenue is converted to AVA and we as SMART members get to vote on what it can be used for.

With the current APY/Burn Method that will soon change it kind of feels like “wasted money” that isn’t really going anywhere so this is really going to kick things into gear.

With the new method each and every booking will translate into a section of funds that we as a community will have direct say in what we spend it on and can really drive some demand and use-case of the token.

Not only does this give us enhanced use-cases but also decentralises the governance.

We will be getting added demand of the AVA token from both the Net Revenue conversions + the use-cases we select.

For me I personally would love to see exposure onto ERC20 (AVA) on Uniswap and BEP20 (AVA) on Pancake swap. I think these 2 items alone would really push AVA to the next level.

I would never speculate on Exchanges but you can do a quick google on how T1 Exchanges support BEP2 vs ERC20 (ETH). A lot of the large ones like Kraken, Coinbase etc.. Do NOT support BEP2 but only ERC20 so this alone opens up so many doors.

SMART APY:

Firstly, the Elephant in the room; The APY for the SMART members has been removed. For most people this isn’t a big deal as it was 0.6% a month (8% APY). I mean if you got into Crypto then this is a pretty low APY and anyone simply chasing APY returns would look at any of the 1000x other Defi Pools (Of which AVA could soon have one).
In addition many people own more than 2500 AVA so never really bothered by this.

Currently there was around 9 Million AVA locked in SMART, at 0.6% that’s around 54,000 AVA per month being given out to users.
From there the users had a few choices:

  • Sell it (Down pressure on the markets with no real advantage to the site)
  • Hold it or use it.

Over the past few months we have seen the price of the token gradually “bleeding” and based on community chatter and response it looks like a large number of the holders just held for the APY to make a quick buck.

So now instead of tiny APY to 1000s of users the funding will go directly towards Buying AVA and putting it into the community pool for new use-cases.

And of Course the Bonus was always just a “bonus” the real core of the SMART program was the Discounts and givebacks:

https://blog.travala.com/save-up-to-13-with-travala-coms-smart-program/

There are likely to be a whole lot of cool features coming for SMART members too including NFTS and other rewards on top of the standard Voting + Discounts and givebacks. Another proposed community feature being “Travel Lounge Cards for SMART members” .

For anyone who travels often holding AVA to get the discounts pays for itself in a short while.

Hypothetical Question:

  • Would you rather see 0.6% on your 2500 at $2 or put your 16 AVA that month towards a listing and Liquidity pool on PancakeSwap that could see the token price for your entire 2500 grow?

For me personally I couldn’t get a rats about a tiny APY on 2500. Give me exchanges, Defi, listings and explosive use-cases for my entire holding *(More than 2500). Pancake is seeing close to 50% APR on a lot of the pools at the moment. (Give me 2500 AVA at $10 over 0.6% at $2 any day of the week)

Burns:

Quarterly burns is simply not fast enough and has had very little effect to date. A 3 month cycle really doesn’t get the community excited at all and will in reality take years to even have an effect.
Take for example the last burn was the biggest to date and took 3 months to burn 100,000 AVA. That’s only 0.1% of the supply.

By comparison of some of the large liquidity pools we could see 10%+ of the supply easily locked within HOURS of a launch. Obviously this is pure speculation based on my behalf and take it with a grain of salt, but to me If you after a reduction in Circulating supply things like Liquidity pools and lockups distribute the token a hell of a lot faster.

From a legal compliance point of view at least in the USA Burns are a bit of a ‘grey area’ , Not saying this was or was not an issue but it’s certainly something to take into account.

Summary:

  • August will kick off with 100,000+AVA . At Current price that’s $200,000 USD towards the first mechanic.
  • Potential expansion to huge exposure via other chain Bridges. ERC20 + UNISWAP?
  • Funding going towards growth of the Utility and not being “wasted” on tiny APY.
  • Fully ‘Green’ compliance.
  • Step towards decentralization and gives AVA holders power and choice.
  • Potential massive lockup for APY pools, Defi etc…
  • Huge boost in community sentiment + Involvement.

This was probably the missing piece of the puzzle that connects Revenue to Use-Case expansion. Now there will be a direct link from Booking revenue to expansion of use-cases and utility and once again making it “Sexy”.

This will also be in my opinion a catalyst for bringing a lot of excitement towards the bookings and voting. Each booking we see popping through the booking bot we can now connect directly to funding towards a new use-case that we can vote on.

30% of the Net Revenue from each of the bookings is contributing to the pool!

Undoubtable some will not be happy with this move but it’s clear this is a winning move for everyone involved and benefits every AVA holder even if they don’t have AVA locked in the SMART program as they will see a whole set of use-cases arise and more revenue = more use-cases.

As a happy side note too if AVA valuation rises then the value of the Community pool does significantly too.

At $2 the Current Pool has $200k worth, if AVA was $15 that’s $3,000,000 that would go to the Community pool so it’s like a snowball effect.

More revenue = More AVA to Pool.
More AVA to pool = More use-cases
More use-cases = Demand (?)
Demand + Use-case + increasing pool value….

The more it grows the more funding the community pool gets and in return it can grow even further. Chain reaction ready to explode(?).

Givebacks:

It’s also just important to point out that nothing changes for the 2% giveback for NON-SMART members.

Every single user making a booking on the site regardless of payment methods such as Creditcard is also getting 2% back in the Value of the booking in the AVA token.

So someone books a $100 room is getting $2 in AVA back from the markets as reward. Once again driving utility + Demand.

Not just a whitepaper:

For those not Familiar with Travala.com or $AVA it should be noted that the booking platform is live and trending very heavily with revenue.

Below is a monthly Revenue chart from : https://tiny.cc/TravalaGrowth

Last Quarter pulling in just under $10,000,000 in Revenue from real paying customers.

So we can all just “Ignore the noise/Fud”. Real revenue and real demand, opinions are kind of irrelevant when you have data.

Full Official Article here + Source :
- https://blog.travala.com/travala-com-governance/

**Just a reminder. This article is my own personal interpretation and thoughts of the blog post at the end of this. I am not an official team member but do hold AVA. DYOR and make your own decisions, Not Advice**

Images + Sources;

https://coinmarketcap.com/

https://www.pexels.com/photo/person-holding-a-vote-sign-4669103/

https://www.pexels.com/photo/orange-and-white-rocket-ship-held-by-a-man-3697813/

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Xen

Written by

Xen

Twitter - @xenzor1 All views and opinions expressed are that of my own.

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project - https://coincodecap.com