The previous three buybacks were conducted via a reverse Dutch auction. Due to several reasons, we decided to use a different approach starting from this quarter. To read more about the motivation for this change in GET acquisition refer to 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…
We will continue buying conducting similar buybacks (and burns) in the future (starting from today).
Tickets sold by GUTS Tickets in Q2 of 2019
Details about the burn back
The total amount of ETH used to fuel the market-buys: 101.12 ETH
The total amount of GET acquired: 67,556.8685 GET
Average GET price in ETH: 0.001496813015 ETH/GET
Average GET price in EUR: €0.344
GET burn calculation
To correct the average acquisition price per GET to the €0.50, 30.8% of the acquired GET will be removed from circulation. This amounts to a total of 20,839.43 GET that will be burned and thus forever removed from circulating supply.
After this burn, the buyback is left with 46 717.44 GET. With the acquisition price of the €23 358.72 worth of Ethereum we end up with the €0.50 EUR/GET we set out to reach as the average purchase price.
In the first burnback of the GET Protocol 20 838 GET is burned. This GET can never return to circulation supply.
Proof of burn
At the moment of writing the 67k GET is still being processed by Liquid. If the withdrawal is completed 30.8% of this partition will be sent to the genesis address of Ethereum. This address is considered Ethereuns burning address as nobody in the world owns the private keys for this address.
NOTE / Blog edit: The burn was conducted on July 3'19 at 10:24 Amsterdam local time.
ETH address of the withdrawal: Etherscan Burnback withdrawal address
The ‘destination’ burn address: Etherscan ETH burn address
Transaction receipt / proof-of-burn: Etherscan transaction
How the burn back occurred
All the GET was bought on Liquid GET/ETH starting from the 1st of June until the 28th of June.
The GET Protocol will use the Liquid exchange for the buybacks in the upcoming quarter of buybacks!
Looking back on the process of the burn back
We are constantly re-assessing the way we approach the token economics of GET. As stated several times before, we prefer to initiate changes based on actual experience instead of fooling ourselves in thinking we can have it right from the get-go.
As such we decided to execute a very basic version of the exchange buyback and proceed in developing tooling after gaining real-world experience.
We are still in the process of analyzing all the results of the burn back and discussing these internally. As soon as this process is completed we will come forward with a comprehensive blog about how we are going to make the centralized burnbacks transparent, scale-able and accountable.
You can expect a full review blog about the improvements and policies we have developed in the upcoming weeks.
Participating in the next buyback
For Q3 the buybacks will be conducted on Liquid GET/ETH pair. The method is rather simple, periodically the lowest sell orders on GET/ETH will be filled(by an automatically executed market-buy). This means that the lowest sell orders in the Liquid order book will be filled over time.
So, if you want to participate in a buyback, all you need to do is create an account on Liquid and place sell orders! Simple as that.
Starting from today the continuous buybacks for Q3 ticket sales will take place on Liquid’s GET/ETH pair.
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.