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 25th of July(12:00) and 28th of September(12:00):
Summary Q3 statechanges
The GET Protocol processed a total of 204 019 state changes in Q3 of 2020.
53 197 tickets & up sells have been issued and 556 tickets have been resold for a total of 786 events.
To fuel these state changes a total of 52 893 GET has been burned.
Proof of burn Q3: 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)
Basic Burn Calculations Q3:
Total state changes: 204 019
Target rate per state change: €0.07
Eur amount used for buybacks: €10 401
Total GET acquired OM in Q3: 38 589 GET
Calculation burn exchange buyback
Total funds for buyback Q3 (53 197 tickets/upsells) = €10 401
Amount GET bought from open market = 38 589 GET
Average buyback price of GET for Q3: +-€0.27
Undiscounted GET required = 52 893 GET
Discount to be provided = 14 304 GET (worth €3 862)
Total value of burn = €14 281 (at €0.27/GET)
Burn details — Sourcing of GET
Total GET bought back: 38 589 GET for approximately €10 401. All the GET for the Q3 Buyback has been acquired directly from Uniswap:
- Buyback @ Uniswap 1: Etherscan tx 16 945 GET
- Buyback @ Uniswap 2: Etherscan tx 14 387 GET
- Buyback @ Uniswap 3: Etherscan tx 7257 GET
Relative to previous burn
The total amount of tickets issued in the last quarter is up with 10% versus the previous quarter.
An all-time record was set in the total amount of events generating state changes; 786 events, a 40% increase to the previous quarter.
The total amount of GET burned in Q3 is 12.7% lower. However, the total amount of GET bought from the open market is 39% higher relative to the previous buyback. Signalling that the discount ratio provided in Q3 has dropped — a good signal for future buybacks.
Sources of the state changes
- 51% of the events generating state changes are recurring events. This is great as recurring events are less subject to sudden shifts in ticket volumes.
- Wicket, the first user of GET Protocol in Italy, have organized their first moderately large events. A huge milestone for the GET Protocol as the sources of state-changes are now also geographically diversified.
- It is not all sunshine and rainbows though. The state changes generated by the office vertical hasn’t sustained the trend it set in Q2. Even though we are still pursuing this promising angle it seems the product/market fit is not as perfect as previously implied. The fact that most of the offices in the Netherlands have been closed surely plays a large role.
- The share of state-changes generated by live-streams continues to grow. It is becoming more and more apparent that live-streams will outlive the virus.
In the getNFT ticket explorer the blockchain team is currently finalizing, there will be more meta-data stored on-chain. This will allow the community to gather the data currently reported ‘manually’ in this blog to be public as it occurs. Providing guidance and reporting isn’t trust-less and doesn’t scale so rest assured we will be working towards making this redundant sooner than later.
We are very excited about the future. If you want to read more about our efforts in expanding the usability of our ticketing tool-set, check out the blogs linked below!
GET update September ’20 — Non Fungible Tickets
To the best of our knowledge we have never been accused of having too little information in our blogs, and we don’t…
Introducing the new Ticket Market
We’ve got something new — it’s been a long time coming, but now it’s finally here! With our new Ticket Market, it has…
Discount provided from UGF
As already discussed to in the Q2 burn report, the event/cultural sector is hit hard, this is effecting margins and this trend is expected to continue. This isn’t a bad thing, this is simply how the market works.
With ticket sales down sector wide ticketing services are in fierce competition for the remaining ticket volume. Ticketeers are service providers with a relatively low variable cost component to their service. Sustaining high ticket volume and users data collection are key to sustain critical mass when the market picks up again.
By on-boarding a large and diverse pokedex of on-boarded clients that are eager to get ticketing again we are setting ourselves up for a big ticket volume ramp when the virus clears. In order to sustain growth we will continue to employ the UGF discount mechanism moving forward.
We are convinced that the clients we are able to onboard due to the discounting will be more than worth the investment.
Check out what awesome clients already joined the cause!
Innovative features, new value locking
The GET Protocol is developing and has shipped several value adding features that are not only catalysts for more state changes, but also will lock in value flows that is less fleeting as the buybacks for state-changes. This mainly pertains to the DeFi and financing modules that keep/lock capital in the protocol for months of a time.
If you want to help us out gain momentum, make sure to share the blogs linked below to whomever might be interested in these tool-sets.
Decentralizing Event Financing — Liquidity x DeFi x NFTs
For the last couple of months we have been working hard on adding a new feature set to our protocol. In this blog I’ll…
Tokenize the right of entry — Using NFTs to solve ticket scalping
It is a well known fact that the primary and secondary ticket market are highly inefficient. At times it seems that…
Wrapping up — The show must go on and it will
We see a clear trend reversal in the state changes and event-creation data. As this monthly increase in activity has been trending since June, making it more and more unlikely this uptick isn’t an probabilistic outlier.
Every month since June we have seen an increase in ticket sales, client on-boarding and event configuration.
As discussed in the September update blog, we also see strong pick up in new artists being on boarded every week. Most of these new clients are not organizing events at this moment due to the Covid situation, but are actively planning and preparing for the moment live events become possible.
It is clear that for a lot of organizers and artist the quiet and uneventful (pun intended) Covid period to arrange and improve aspect of their show/business that they would be otherwise too busy to solve.
Reflection & Guidance Forward
However, even if stricter Covid rules are imposed I personally find it unlikely that ticketing volumes will drop as low as they did in Q1 and Q2 of this year. In the beginning of the year events where often completely cancelled & refunded when cases spiked. Nowadays it is far more prevalent for events to be scaled down(by splitting the attendees up in editions) or otherwise delaying the event. It is clear that the industry has learned to cope with the new reality of the virus and is focusing on accommodation not cancellation. The show must go on.
TLDR: In the last couple of months we have seen a huge uptick in the on-boarding and signing of independent artists, organizers and museums. As we move forward into the final quarter of the year we will expect the amount of state changes to continue in its upward trend. We’ll know for sure by end of the year. Godspeed.
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!