The burn back report Q1 2020

Kasper Keunen
Apr 3, 2020 · 4 min read

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

Summary Q1 the first quarter of the decade

The GET Protocol processed a total of 335 517 state changes.

A record number of 81 061 tickets have been issued with 2687 tickets being resold for a total of 202 events.

To fuel these state changes a total of 107 059 GET has been burned.

Proof of burn Q1: ETHERSCAN BURN PROOF

Relative to previous burn

The total amount of state changes is -4.23% lower as previous buyback. This makes sense however, as because of Covid, there haven’t been any scanning state changes for the last couple of weeks.

The total amount of tickets sold in the quarter is up with 30.79% versus the previous quarter. It is encouraging to register such strong growth as the ticket sales and resale activity have evidently been effected by the Covid virus.

Input data Q1:
Total state changes: 335 517
Average discount rate per state change in Q4: 29%
Undiscounted rate per state change (averaged): €0.07

Calculation burn exchange buyback

Average price state change = (€0.07 * 71%) = €0.0497 per state change

Total funds for buyback Q1= (335 517 * €0.0497) = €16 675

Amount GET bought from open market = 76 012 GET

Making the average buyback price of GET for Q1: +-€0.22 -> this result we will carry to the discount burn calculation in the paragraph below.

Calculation burn discount

Discounted per statechange: (€0.07 * 29%) = €0.0203

Total funds for discount = (335 517 * €0.0203) = €6 811

GET needed from internal pools = €6 811 / €0.22(carried) = 31 047 GET

Total allocated to buyback = €16 675 + €6 811 = €23 486

There goes 107 059 GET never to hit the circulating supply again!

Total GET burned = 76 012 + 31 047 = 107 059 GET

Looking back

Even though the last weeks have been slow from a state change point of view, a lot positive change has taken place from a product development perspective. If you are interested to know what we are working on check out the March update!

At the moment it is unknown when the Covid lock downs around the world will be lifted. During this time the amount of state changes will remain extremely low (as we have seen in the last month). This moment of pause inside our homes gives us the time to focus and improving the old and building the new.

Looking ahead

As discussed in the tail end of the previous burn back blog, we plan on making the burns fully dynamic and on-chain. This is still in the road map but will require the transition to a blockchain that can handle this type of throughput economically.

When the lock down is lifted and the virus is defeated I expect several things to pick up speed; state changes, block times and liquidity.

Statebox authentication

Currently we are awaiting the deployment of authentication features of Statebox. When rolled out (and extensively tested) the addition of authentication will allow us to fully finally open source the code base that composes the state changes.

Bugfixes for Stoolbox

There are several minor inconsistencies in the data as it is anchored on the blockchain currently — resulting in IPFS batches dropping out. The problem is minor and is expected to be fixed in the upcoming weeks.

GET X DeFi

Fueled by client request we have identified a promising new opportunity to leverage blockchain ability to improve and democratize finance — to the GET Protocol. Together with several reputable partners we are in the process of working towards a pilot. While it is still quite early days, I personally believe that the addition of decentralized event financing will pose to be the missing piece. We are very excited to tell you more!

Node status

The work on the addition of staked nodes to the GET Protocol is still ongoing.

More about GET Protocol

A blockchain-based honest ticketing solution for all.

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.

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