Burnback report Q1 2021

Kasper Keunen
Apr 9 · 7 min read

It has been 3 months since the last buyback report, which means it is time for a new burn! If you are interested in the mechanics and logic behind the buyback, I encourage you to read the blog linked below.

Don’t trust, verify!

python import_IPFS.py --startheight 11539000 --stopheight 12120640output: 216163 statechanges

Summary Q1 statechanges

The GET Protocol processed a total of 216 163 state changes in Q1 of 2021.

41 926 tickets & up sells have been issued and 122 tickets have been resold for a total of 251 events.

To fuel these state changes a total of 7336 GET has been burned. Worth $57 220 at the moment of burn, $26 801 at the moment of purchase from Uniswap.

Proof of burn Q1: Etherscan tx

Previous burns (new economics)
Q2 2019
-> 44 468 tickets sold |20 839($7 627) GET burned (etherscan)
Q3 2019 -> 20 592 tickets sold | 12 293($3 834) GET burned (etherscan)
Q4 2019 -> 62 215 tickets sold | 98 348 ($31 997) GET burned (etherscan)
Q1 2020 -> 81 061 tickets sold | 107 059($25 997) GET burned (etherscan)
Q2 2020 -> 48 090 tickets/upsells sold | 60 607($12 317) GET burned (etherscan)
Q3 2020 -> 53 197 tickets/upsells sold | 52 893 ($12 317) GET burned (etherscan)
Q4 2020 -> 53 841 tickets/upsells sold | 58 824($20 104) GET burned (etherscan)
Q1 2021 -> 41 926 tickets/upsells sold | 7336 ($26 801) GET burned (etherscan). At the moment of burn $57 440.

Basic Burn Calculations Q1:
Total state changes: 216 163
Target rate per state change:
€0.102
Eur amount used for buybacks: €22 521 (est)
Total GET acquired from open market in Q1: 7336 GET

Calculation burn exchange buyback

Amount GET bought from open market = 7 336 GET

Average buyback price of GET for Q1: +-€3.06 (est)

Undiscounted GET required = 7 336 GET

Discount to be provided = 0 GET (worth €0)

Total GET burned = 7 336 GET

Total value of burn = €48 268 or $57 440

Burn details — Sourcing of GET

  • Buyback @ Uniswap 1: Etherscan tx — 6 ETH / $11 194 -> 3 184 GET
  • Buyback @ Uniswap 2: Etherscan tx — 7 ETH / $13 060 -> 3 628 GET
  • Buyback @ Uniswap 3: Etherscan tx —1.5 ETH /$2 547-> 523 GET

New token utility avenues

DAO — GET token economic policy

Source: Placeholder blog on the buyback & make model

Designing for effective governance

The buyback & make model as introduced by placeholder is designed to align the market and the producers of the protocol (ticketeers). Instead of the market and producers to have mirrored incentives in regards to economic policy of the protocol, the buyback & make model creates a nexus (the smart treasury) that is funded by the fees generated by users (whom are served by the producers).

Adopting this model on itself won’t change the fundamental utility and scarcity realities of GET (deflationary, capped supply, fuel for tickets). The model merely manages where the value flowing into the protocol by users ends up. The DAO could decide for the value to be stored in the treasury or to be allocated to burns, staking rewards or investments in growth of amount of producers or stimulating the users.

This might seem like an be a dense and overly abstract subject, but those having observed governance in the crypto space will know that it is key to think about these dynamics. Without common ground decentralized governance will remain in a gridlock. The token holders/market will demand of the producers to insert more value into the protocol, whereas the producers want to maximize the amount of users they onboard.

By shifting the protocols value-lock to a shared treasury (that is controlled by token holders vote) a rallying point is created. This approach can be found in several protocols. For example Uniswap/Sushi have a model where they do not charge for pool creation or LP actions — as pools and LPs are their producers. A fee is charged to the users of these liquid pools. Due to this LPs and token holders are aligned as both benefit from more users. All resources of the protocols treasury will naturally flow to realizing this goal. If instead the economics where set up that value comes from LPs that pay a fee to add/withdraw liquidity — governance would most certainly be in an constant state of conflict as LPs and token holders have inverted incentives.

Relaying this to GET it could be interesting to explore if a value driver could be found in setting a ratio cut of the added value/profit ($ revenue) of the secondary market sales. As this metric taxes realized added value for both the user, as the producer as the market. This is just one of the various ideas we are playing with and which will be shared with the community when fully developed.

The transition to a new token economic model will be gradual and eventually involve the participation of the GET DAO. New models don’t cancel or replace old mechanisms. Economic policies are meant to work together and create ‘synergies’ (yes we are going all-in on vague business jargon, deal with it). Focussing on user revenue doesn’t mean that ticketeers use the protocol for free (as the Uniswap example could be interpreted, it certainly shouldn't) ticketeers should be charged to the extent it makes economical sense to pay(making the protocol competitive on pricing). It is all about finding a simple and effective harmony for the tokens utility, the governance and user growth(in amount, added value and of course revenue).

All ideas, initiatives or critiques are more than welcome!

More about GET Protocol

How to help out
If you are a fan of our system and want to help out, you can do so by leaving a review about GUTS on Google, the iOS app store or Google Play store.

Where to buy GET
Want to get your hands on some GET tokens? Here’s an easy guide.

A blockchain-based honest ticketing solution for all.

Korea
Our Korean Telegram channel can be found here, and our Naver page is here.

Learn more
If you want to know more about what we do, read our whitepaper, visit our website, or join the discussion on the GET Protocol Reddit.

Exchanges
If you would like to see the GET token listed on specific exchanges, the best way to do this is to (publicly) let exchanges know about the project. The more they hear about it from actual traders, the better!

GET Protocol

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