Announcing the Q4 buyback | 27 December 2018 | GET Protocol

Kasper Keunen
Dec 20, 2018 · Unlisted

After a swift but successful first buyback, it is now time for the second and final buyback of 2018. On Thursday the 27th of December at 12:00 UTC the reverse Dutch Auction will start and the required amount of GET will be bought back from the open market.

In Q4 a total of 5164 smart tickets were sold and resold by GET Protocol user GUTS Tickets. This comes down to a total of €3 039 worth of GET of fuel that will be bought back for this quarter.

Just like the previous buyback the starting tranch will be at €0.50/GET.
With the current ETH price levels the first tranche will be start with a swap rate of 0.0052 ETH/GET.

Details on why the amount of GET bought back in Q4 is significantly different from the last buyback will be detailed in the next few sections of this blog. In the tail end of the blog, the practical details of the Q4 buyback will be detailed.

Focus on the process, not marketing value

As most of you will have noticed the size of this buyback is considerably smaller than the first Q3 buyback. This is due to the fact that a large series of ticket sales, initially planned to take place in Q4 of ’18, has been postponed to 2019. This change was at the request of an event organizer/client of GUTS Tickets (the possibility of a delayed sale was already mentioned in the November update).

The goal of the buyback; periodic and structured

An important frame of mind to remember is that the reason the GET Protocol Foundation conducts buybacks is not to reward the community or inflate the value of the token. While buybacks in a way can indirectly have this effect, it doesn't negate the fact that in principle buybacks are needed. GET from the open market is required to fuel the event contracts of the smart ticket (re)sales conducted via the protocol by one specific ticketing company in the months preceding the buyback.

In the long run, we see more value in establishing a periodic and consistent stream of demand created by the buybacks over an irregular and opportunistic timed scheduling of buybacks. Demand consistency will create an asset that has a clear fundamental value based on predictable supply, demand, and velocity. Whereas the irregular scheduling of buybacks will create uncertainty, volatility, and unmanageable speculation.

When extrapolating?

It would clearly be better for the optics to have a progressively larger buyback instead of a significantly smaller one (than the previous round that is). Postponing/canceling the scheduled buyback of Q4'18 would allow shifting all focus to the Q1 2019 buyback.

Therefore canceling the Q4 buyback would make sure that the second buyback will dwarf the first buyback of €30k (Q3 2018). However, this would clearly be a case of fabricating extrapolated growth. This type of messaging creates expectations that currently is catching up to a lot of overhyped crypto projects. Solid projects with revolutionary tech and novel business models behind them, can suffer from great community disillusionment due to extrapolation. The mainstream consumer/client isn't that gitty about Byzantine fault tolerance as the homogenous crypto community is, note that this doesn't invalidate the crypto use case at all but it does require more patience and continuous reflection on behalf of the backers.

Thus a conclusion that we are pursuing a buyback strategy that is not beneficial from a hype perspective is completely valid. What is the strategy you ask? Let me briefly bring you up to speed on our intention and what the long term goal is when conducting and planning GET buybacks.

Setting a predictable standard

The entity GUTS Tickets is a client of the GET Protocol Foundation. The ticketing company does not own or earn any GET. As using the protocol's infrastructure requires GET, GUTS borrows tokens from the stability fund, a protocol fund that needs to be made whole periodically (by conducting a buyback).

GUTS Tickets has to acquire GET from the open market periodically regardless of how much tickets the ticketing company sold. The GET Protocol Foundation and GUTS Tickets are two different entities. Having strict rules in this matter is important as in 2019 more ticketing companies than just GUTS Tickets will be using the protocol — as such setting rules for all ticketing companies to adhering to is important.

Didn’t we say we would sell 140k tickets in Q3 and Q4 of 2018?

This was indeed the projection of GUTS Tickets. As mentioned a large ticket sale has been postponed to 2019 and the GET required for this sale will be bought back after the sale has been conducted.

Will the buyback of Q1' 19 be larger due to this?

Yes. Significantly I might add. Throughout 2018 the GUTS Tickets application was operational, but not yet deemed commercially ready. This means that while the application was able to process all aspects of ticket sales, doing so did require quite some monitoring and support of the GUTS & GET team. With the recent additions to the event organizer dashboard, support funnel and scanner application the application can now conduct large sales without a lot of team overhead.

So processing 1 million tickets (the 2019 prognosis) wouldn't have been possible in 2019 without having to pull away all development resources from adding new features to the ticketing application.

As mentioned, foreign and domestic ticketing companies that are not GUTS Tickets are scheduled to start conducting buybacks in 2019.

Are you somebody, or do you know somebody that can help us in buying back all the tokens from the open market within a few years? Check out our open sales positions!

The event organizer dashboard. From experience, we know that before, during and even after event organizers make a lot of changes to the pricing of their tickets. Several dashboard functionalities make playing around with ticket types easier than ever!

Buyback details

Assuming all the details and rules of the buyback are clear to the reader, this article will proceed in listing the concrete GET demand, lock and times.

The GET that will be bought back during the buyback on December 27th, will be used to fuel the tickets of 25 events that where sold in Q4.

Check out the ETH-runner registering the ownership of tickets issued by GUTS Tickets in real time: Etherscan.

For a more high-level view on how the buyback method works token-economically in the GET Protocol check out the blog below:

Key numbers buyback Q4 2018:

  • On 27 December (at 12:00 UTC). In universal epoch time: 1545912000000 the buyback method will start accepting GET swaps for the base swap tranche. In order to find the accurate market price per GET the auction will increase the swap rate/price in steps after the auction has started. The increasing swap rate will continue until the demand of the buyback is filled (so until all the ETH in the buyback is swapped for GET). Note that due to how time zones work the buyback will start at 13:00 in the Netherlands, Amsterdam (+1 UTC) time zone.
  • Before participating make sure you understand the process and logic behind it in the blog linked below:
  • Details on the ETH/GET swap rates (or the price schedule) will be made public by blog on 24th of December.
  • The tranche address, the Ethereum address participants have to send GET to in order to bid in the reverse Dutch auction will be made public on the 24th of December on the website. ONLY USE THE ADDRESS AS FOUND ON THE OFFICIAL WEBSITE OF THE GET-PROTOCOL (
  • In total € €3 039 worth of Ether will be swapped for GET. At current ETH prices, this would be equivalent to 31.65625 worth of GET that will be acquired from the open market starting from 0.0052 ETH/GET until the demand is filled by the open market. The amount of GET that will be bought is decided by the open market participants by means of the reverse Dutch auction price discovery.
  • How much GET is going to be required per smart ticket depends on the average ETH/GET as is discovered during the auction.
  • Participating in the GET Protocol buyback auction is completely at the participant's own risk! Only trust information given in official GET Protocol channels, such as the website and blog. Always double check the tranche address! Make sure you fully understand the terms and rules of the auction BEFORE you participate.
  • Participating is final, after sending GET to the tranche address you cannot cancel or make ‘changes’ to the GET transfer.
  • All GET sent to the buyback address that was too late will be returned to the sender within 48 hours of the auctions close. Be aware of this latency!

Review the blogs going into depth on the buyback method if you want to know more : 1, 2 and 3.

More about the GET Protocol

Any questions or want to know more about what we do? Join our active Telegram community for any questions you might have, read our whitepaper, visit the website, join the discussion on the GET Protocol Reddit. Or get yourself a smart event ticket in our sandbox environment. Download the GUTS Tickets app on IOS or Android.

GET Protocol

GET Protocol updates and announcements

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store