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.
Updated buyback token economics: Introducing continuous buybacks
On March 27, GET Protocol conducted its largest buyback to date. In this blog, I will review how the Q1 ’19 buyback…
Don’t trust, verify!
If you want to verify the state change count for yourself, I encourage you to run the numbers for yourself with the simple script available on the GET Protocol Github. The following command will import all IPFS batches between 28th of September(12:01) and 28th of December(12:00):
python import_IPFS.py — startheight 10950849 — stopheight 11539000
Summary Q4 statechanges
The GET Protocol processed a total of 221 211 state changes in Q4 of 2020.
53 841 tickets & up sells have been issued and 1989 tickets have been resold for a total of 608 events.
To fuel these state changes a total of 58 824 GET has been burned.
Proof of burn Q4: ETHERSCAN BURN PROOF ETHERSCAN BURN
Previous burns (new economics)
Q2 2019 -> 44 468 tickets sold |20 839 GET burned (etherscan)
Q3 2019 -> 20 592 tickets sold | 12 293 GET burned (etherscan)
Q4 2019 -> 62 215 tickets sold | 98 348 GET burned (etherscan)
Q1 2020 -> 81 061 tickets sold | 107 059 GET burned (etherscan)
Q2 2020 -> 48 090 tickets/upsells sold | 60 607 GET burned (etherscan)
Q3 2020 -> 53 197 tickets/upsells sold | 52 893 GET burned (etherscan)
Q4 2020 -> 53 841 tickets/upsells sold | 58 824 GET burned (etherscan)
Basic Burn Calculations Q4:
Total state changes: 221 211
Target rate per state change: €0.09
Eur amount used for buybacks: €15 357 (est)
Total GET acquired from open market in Q4: 45 380 GET
Calculation burn exchange buyback
Total funds for buyback Q4 (53 841 tickets/upsells) = +-€15 357 (est)
Amount GET bought from open market = 45 380 GET
Average buyback price of GET for Q4: +-€0.34 (est)
Undiscounted GET required = 45 380 GET
Discount to be provided = 13 444 GET (worth €4 550)
Total value of burn = €19 908 (at €0.34/GET)
Total GET burned = 45 380 + 13 444 = 58 824 GET
Burn details — Sourcing of GET
Total GET bought back: 45 380 GET for approximately €15 357. All the GET for the Q4 Buyback has been acquired directly from Uniswap in 6 transactions:
- Buyback @ Uniswap 1: Etherscan tx — 5.7 ETH/ $3 441 -> 7 932 GET
- Buyback @ Uniswap 2: Etherscan tx — 4.9 ETH/ $2 921 -> 7 090 GET
- Buyback @ Uniswap 3: Etherscan tx — 4.96 ETH/$ 3 525 -> 8 154 GET
- Buyback @ Uniswap 4: Etherscan tx — 2.5 ETH/ $1 636 -> 4 417 GET
- Buyback @ Uniswap 5: Etherscan tx — 3 ETH/ $3 129 -> 7 672 GET
- Buyback @ Uniswap 6: Etherscan tx — 3 ETH/ $3 631 -> 10 112 GET
Total GET bought back: 45 380 GET. Total of 24.06 ETH used in the Uniswap pool. Worth approximately $18 283 / €15,357 at the time the buybacks where performed.
Relative to previous burn
The total amount of GET burned is 11.21% higher than the burn of Q3.
The amount of FIAT used to buy back GET from the open market increased with 47.65% VS the previous quarter.
More numbers (relative to Q3 burn):
- 5.86% less UGF subsidy
- 17.6% more GET bought back.
- 8.43% increase in ticket statechanges
- 1.21% increase in tickets sold
- 39.5% more token value burned
Reflection & Forward Guidance
The statechange/ numbers show that the upward statechange trend observed and described in the Q3 burnback report has continued. The Q4 numbers are especially encouraging when taking into account that for large parts of the quarter there was an extra strict lockdown imposed in the Netherlands/Europe.
A vaccinated world lies ahead
In all the markets GET ticketeers are operating vaccinations are being distributed as we speak. The amount of vaccinations and herd immunity is only expected to ramp up moving forward — something that will logically lead to less strict restrictions on events. At this point it is safe to say that we are finally turning the corner in regards to the pandemic. Obviously this is very encouraging and exciting for the GET Protocol as events will thrive again. We are excited about the future.
Even though the virus has been tough for our clients and the sector at large, we are confident that the protocol is emerging more competitive. The benefits of dynamic and digitally personalize rights of entry become evident for the entertainment sector. For a more detailed breakdown of 2020 I encourage to read the recap blog linked below.
GET Update December ’20 — Ready for the (re)launch
After a year of building, expanding and diversifying, it’s almost time for 2021. Look ahead with us and see what we’re…
The rate per statechange increased due to less economies of scale in Q4 (less events, smaller events, added services) and possibly more complex events. As events become larger the average cost per ticket will likely drop to levels previously reported and possibly lower (this is how economies of scale should work). This is a good thing for the long term value capture of the protocol. In the end protocols can claim the mountain by market share not profit margin.
New year, new features
Looking at the deployment schedule ahead it seems that the first months of the new year will be filled with new exciting features that will be rolled out.
- getNFT & crypto wallets for all ticket owners & traders
Effectively this will mean that every ticket (or event related asset) will have a blockchain twin. Expected to be rolled out in Q1 (very soon!).
- Event financing using invNFTs (securitzation of ticket inventories)
The first NFT fueled event financing rounds will be launched before the end of Q2.
- On chain token economics.
With the roll-out of the getNFT blockchain registeration the need for ‘reports’ as these will become obsolete. A big step for transparency and opening the door for on-chain governance.
All mentioned features will come with new and promising usecases for GET. There is a lot to be excited about.
More about GET Protocol
Where to buy GET
Want to get your hands on some GET tokens? Here’s an easy guide.
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!