A resource for answering questions pertaining to GET Protocol's DAO Tokenomics
Part of the string of fairly big announcements earlier this month was the introduction of what’s lovingly called the DAO tokenomics. While most of the upgrades and aspects contained in the workings as described in the documentation were previously alluded to, we’re now taking the opportunity to delve a little deeper into certain aspects and answer a few of the initial questions that have popped up.
We’ll use this as a living document to update with any additions we see fit to provide specific context or answers to relevant questions, should they emerge in the future.
Let’s start with a breakdown of the core elements of the GET tokenomics.
The bottom line and core principal has remained the same throughout the years of functioning of the protocol. GET tokens are the fuel that allow the protocol to do what it should be doing: process the transfer of blockchain-backed NFT tickets.
Used GET goes to the DAO
Token holders will have voting rights over the purpose of the GET collected from use of the protocol.
Where the former workings required centralized (boo!) administration and retro-active buying from the open market, the DAO tokenomics require integrators to top-up their GET through market buys, easily triggered from an integrator dashboard. This is done through a fully on-chain ‘top-up’ process that allows users of the protocol to obtain enough GET for their ticketing activity.
This makes integrators token holders by design
Placing the purchase of GET to issue tickets at this presale step for ticket issuers, makes them conscious buyers & holders of the token. This is exactly what we want, as we see a lot of potential and upside in having current and future integrators as potential participants in the functioning of the DAO.
This has been one of the big longer-term objectives of the protocol, and it is terrific to now be circling in on the phase where ticketeers can become more active and conscious participants in the ecosystem.
What about any hostile actors buying up huge amounts of tokens and incapacitating GET with their voting powers?
There are several reasons not to fear this scenario. Here’s two basic ones:
The DAO functioning will be gradual. We’re not just going to place the fate of the protocol in the hands of everyone holding GET instantly, but rather prepare token holders through participation on less mission critical elements first.
You would need to buy A LOT of GET to have sole power over the DAO from one evil or otherwise- perspective. This would be very tricky to do without pushing up the price immensely, and even then a majority vote is not all too likely. Between die-hard community members, long term team holdings, enthusiastic ticketing integrators and dependable ICO investors, it would be a big, unlikely undertaking.
So when can we start voting? GET is already being collected every day, right?
Yep, GET is currently circulating through the system as we are testing the value flow and contracts and such. We want to be thorough and make sure the process is tried and tested in order for us to ramp up numbers even more and onboard future integrators.
We’ll inform you as things progress, both in on-chain metrics and voting possibilities.
As mentioned in the section above, the steps taken towards a fully functioning DAO will be gradual and deliberate, with a continual increase in decentralization and governance over the next several years. We’ll keep the community well informed of our plans as they come to fruition.
GET is the medium of exchange for all white-label operations and all revenue is collected in GET. This allows easy international integration for suitable parties and avoids several potential points of friction such as varying accounting, local taxation processes and currency exchanges.
Pricing for white-labelers comes down to a percentage of the ticket value. The exact percentage will vary per event and user, and the total, exact pricing of the complete deal will not be disclosed - for obvious business competition reasons. Every deal tends to be different, based on complexity of services and factors such as incentives or market-specific elements so we won't be putting all of this on-chain.
This leaves two components to the overall pricing. Off-chain revenue exists to cover operating costs and allow for custom deals, but to be clear, GET is still needed to mint tickets on-chain as fuel and the mintRate will be higher for white-labels than it is for digital twin customers because we provide a lot more value off-chain.
2.) Digital Twin
We are proud to have introduced the Digital Twin product alongside a first integrator in Yourticketprovider. It’s good to understand that the Digital Twin product and therefore it’s corresponding tokenomic aspects, is aimed at one thing: scaling.
In aiming to meet the needs of existing ticketing issuers such as Yourticketprovider and the many thousands of comparable businesses across the globe, there is a big opportunity for GET to gain a foothold across markets and for this reason, the initial costs for Digital Twins are kept purposely low.
Our aim is to onboard as many integrators as possible, while incrementally proving the added value and ease-of-use of the product along the way.
Once on board, the protocol is in place to offer additional future services, such as digital collectibles and event financing. These services will obviously come at a cost denominated in GET, once again increasing the demand and utility of the GET token.
As part of an effort to further the visibility of on-chain statistics and information available, we're working on tools that will allow the community to access insights into GET Protocol's on-chain metrics. More information will follow soon regarding this.
Future tokenomic updates will be added onto this document as they are deemed relevant. If you have any other questions or would like to discuss the tokenomics further with our community, please visit the GET Discord server.
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