The GET Protocol token economics
What you need to know about the purpose and usage of the GET token.
This blog is going to lay out the basics of the economics for the GET token. It will hopefully provide you with a basic understanding of the role that GET has within the protocol. For clarity’s sake, this document will serve as the only point of reference on the topic of token economics, both for people who have been following us for the last couple of years as well as for people who are completely new to our project.
So, to keep things understandable we’ll keep it short and sweet and avoid going into great detail on every topic. For questions, or to talk to GET team- and community members, join our Telegram group.
The whole story will consist of three brief chapters, but if you simply want the gist of the story, we’ll start off with a summary that sums up the basics of what you need to know:
TL;DR in four steps:
1.) GET Protocol is a blockchain-based ticketing engine, allowing ticketing companies to issue admission rights in a fully digital way. This innovative approach provides many benefits over traditional ticketing.
For example, one application of the system is eradicating fraud and ticket scalping. However, there is much more to it and the ticketing industry is on the brink of understanding this.
2.) Making use of the GET Protocol requires a fuel, called the GET token, or simply ‘GET’. For example: Tickets that are sold and resold by ticketing companies using GET Protocol require GET to perform their duties.
3.) After an event cycle is completed and all tickets are validated and processed, a portion of GET is automatically burned by the protocol, decreasing the total supply of GET that exists in the world.
4.) The GET needed by ticketing companies for their sales and events is provided up front by the protocol at a locked rate per event cycle, to provide a frictionless experience for the ticketing companies and their fans.
Want a little more context? No problem. We’ll go over the top-level material in three short chapters:
1.) The Basics
2.) Tickets require GET
3.) Burn after using
1.) The Basics
A quick reminder (or crash course if you are a newcomer) on what you need to know about GET to understand the token economics.
What is GET Protocol?
Simply put: A blockchain-based engine for issuance of fully digital proofs of a rights to enter events.
What is the GET token?
GET is a utility token that serves as a fuel for smart tickets issued by the GET Protocol.
But what does GET really do exactly?
For every ticket action, a transaction fee is required. This fee is calculated and paid in GET. An example of this transaction could be the validation of the ticket, the ticket being shared, the ticket being resold, you name it.
For crypto-savvy folks, the workings of GET within the protocol can be compared to the way gas fees are needed with Ethereum.
With each interaction, for example each time a smart ticket is bought, shared or scanned at an event, GET is used to make this happen, similar to the way a car uses fuel to go from point A to point B.
Why does the GET token exist?
- GET is fuel for smart tickets. As with any fuel, usage of it is required for change to occur.
- The GET token serves as a gatekeeper for network usage and restricts access for non-approved bad actors or unwanted events, without centralised ‘censorship’.
- GET is the only valid medium of exchange within the protocol. This ensures that both parties of a trade agree by default on the basic terms of the trade, reducing friction.
How many GET tokens exist?
In total, a little over 33.3 million GET were minted and exist in the world.
Will there ever be more GET tokens made?
No. On the contrary, GET is a deflationary asset, meaning the amount of GET can only decrease. In fact, the more tickets are sold on the protocol, the less GET will exist in the world. But more about that below.
Where does demand for the GET token come from?
Simply put: Ticketing companies making use of GET Protocol need GET to fuel smart tickets.
Not all smart tickets use the same functionalities. Usage of more (complex) functionalities means that more GET is required to complete them. This is an important thing to keep in mind.
Who is using the GET Protocol?
Currently the protocol is used by two ticketing companies:
#1: GUTS Tickets
Here’s another recent media mention of GET Protocol, via a segment about GUTS on CBS New York from a little while ago:
The second user of the protocol is Itix, a theatre-focussed ticketing company that handles two million tickets per year and announced their adoption of the protocol in May of this year.
#3: getTicket (South Korea)
The first ticketing partner abroad, is South Korean joined venture getTicket.
After extensive research and discussion, we have helped a local team in Seoul set up their own ticketing company, which is aiming to bring honest, digital tickets to South Korea. The first events have been ticketed, and from what we hear there are some big ones in the pipeline. Stay tuned.
#4 Wicket Events (Italy)
Over in Italy, the newly formed Wicket Events is taking on the event industry. The team has hit the ground running, their first event being a wine festival in Verona.
#5: TECTIX (Germany)
The ambitious TECTIX team in Germany is setting their sights on the sports market.
As the protocol develops and gains more and more real world traction and exposure, more ticketing companies are expected to use the protocol.
Still with us? Great. Now that that’s out of the way, let’s take a closer look at the usage of the GET token.
2.) Tickets require GET
Again: All tickets issued using GET Protocol require GET.
The GET Protocol is all about making the ticketing industry more transparent and accountable. It does so in part by using blockchain technology, which provides exactly those features: transparency and accountability.
As can be seen in the previous chapter, there are already plenty of real artists and organisations who put their trust and financial stability in the hands of the ticketing companies that make use of GET Protocol.
These ticketing companies obviously need to provide a perfect ticketing experience to their fans and consumers. Using innovative technology can’t come at the cost of customer experience.
That means that in the event of a big sale, these ticketing companies can’t allow their customers to be inconvenienced on account of having to wait for the lengthy duration it can take to register tickets to the blockchain.
(Believe us, we’ve tried this, it’s not pretty.)
As anybody with basic knowledge about blockchain will be able to tell you, is that blockchain technology isn’t really known for its ability to get a lot of stuff done. Processing large amounts of data in a secure and, most of all, cost-efficient manner is a challenge.
That’s why we’ve partnered with Statebox to develop a process that accomplishes the best of both worlds: Transparent ticket registration and validation that can be used by an infinite amount of clients and consumers.
If you are curious about this solution or want to know more about the technical specifics, we recommend you read the following blogs.
(Be sure to grab a coffee and a few snacks first, you might be a while.)
GET & Statebox — Scalable blockchain tickets for the masses
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If we harshly summarise and forget about nuance for a second, what this system boils down to is a process that registers tickets and proves their validity in large groups at the same time. This way it requires the minimal blockchain capacity, while benefitting from all of its features.
A few things to keep in mind:
— It costs GET to process and validate tickets.
— The more complex features a ticket has (think of anything from ticket sharing, reselling, other elements such as merchandise or consumptions), the more GET is required.
3.) Burned after using
When all the tickets for an event are processed and validated, the event cycle is over. At this point, a portion of the GET that has been used in the event cycle is ‘burned’ and disappears off of the face of the earth.
As mentioned before, currently there are over 33 million GET in existence.
With our tokenomics in place and projected number of quickly upcoming sales and further adoption of the protocol, we can safely make the following projection:
Before the end of 2022, at least 50% of the total supply of GET is going to be burned and will be taken out of circulation forever.
It will also lead to a situation where ticketing companies will have to buy their GET directly from the open market. More about the timing, process and potential value as connected to this new scarcity will be provided in full at a later point.
That’s it! You made it! This was the top-level explanation of the GET Protocol token economics.
If you would like to see how and where you can buy and trade GET, you can do so at the blog below:
How and where to buy the GET utility token — An updated list
(NOTE: If you prefer a Dutch version of this article, you can find it here.)
Of course, there are many hypotheticals and details we can get into. For this, you are always welcome in any of our active communities.
As is the case with any developing project, we are continuously evolving our system and approach as we go, based on new insights and findings. If in the future we gain new insights that lead to a finetuning of any part, this will be clearly stated and announced.