GET protocol — the current state & things to look forward to

It’s been more than 7 months ago since I’ve written The bullish case of GET protocol. In the meanwhile a lot has changed, which I’ll try to share in this blog. For those not familiar with GET protocol, here’s a flyer that sums it up, together with an explanation video:

GET has sold over 560k tickets for over 1000 different events

Content:

Looking back to 2020

The numbers

GET’s runway

Things to look forward to (very exciting)

2020

First let’s look back at the special year we’ve just put behind us…
Obviously 2020 was a very difficult year for the event and ticketing industry. No large events were allowed and even no events at all during several months of the year. Needless to say that the ticketing volume of the protocol took a major hit. While the anticipation was that in 2020 GUTS (first user of GET protocol) alone would sell over a million tickets, it all started to look gloomy come February/March when most events were either delayed or cancelled.

But 2020 wasn’t all that bad, on the contrary. While many crypto projects (would have) folded for far less, the GET team showed extreme resilience and developed the protocol into a tool that will take the ticketing world by a storm (more below).

A team that can turn a threat into an opporunity is one that won’t fail.

And that’s exactly what happened:

171 livestreams were serviced, several museum entries were ticketed every day & new verticals like offices and even municipalities were introduced.

A collage of livestreams ticketed by GET Protocol user GUTS.

The numbers

The outcome was that 236.189 tickets were sold in 2020! This is an increase of around 27% compared to 2019. Additionaly 279 383 GET were burned forever, or an increase of more than 112% compared to the year before.

Of those 279 383 GET burned, 187 741 were bought by ticketeers from exchanges. For which they spent €47 707.

You can find a list of all artists & event organizers who have used GET fueled tickets in this blog:

2020 was also the year that we saw the GET burn wallet move into the top 10 holders list. You can track it here:

https://etherscan.io/token/0x8a854288a5976036a725879164ca3e91d30c6a1b?a=0x0000000000000000000000000000000000000000

Right now this wallet contains 410 863 burned GET (with a current value of $152.718).

Note: the 0x0000… wallet is the Ethereum genesis wallet, everything that’s sent there is gone forever.

Even in a normal year such a number is adoption other crypto projects can only dream about. You can imagine that this number will multiply when things return to normal

The runway

Every project that conducts an ICO receives funds in return for their tokens. The project makes a whitepaper in which they promise what they intend to achieve with those funds. We call that the runway: the time these funds give them to finish the project.

2020 has been very generous for GET in that regard. It has multiplied the runway. In other words: the treasury the team holds has even gained in value while the development team was even expanded. There are 2 reasons for that:

  1. During the pandemic the Dutch government covered almost all the labour costs of the protocol. Considering that these are by far the biggest costs and that they have 30 full time employees, that’s a very significant amount of money the protocol received.
  2. As the team holds their funds in ETH & BTC, the value of those funds has increased a lot in 2020.
GET CEO Maarten Bloemers refering to 2020

Eventhough the runway was never questionable and the team had enough funds to finish the project (= make it fully decentralised and running on its own) before the funds dry up, this is still very significant.
It gives a lot more breathing space to hire more developers, do more marketing, …
It’s up to the team to decide how they’ll deal with this but it will either way be used to increase the value of the project and thus directly or indirectly the value of the token.

Things to look forward to

NFT tickets
After the DeFi hype we’ve witnessed last year, the next hype in crypto that seems to be developing are NFT’s. So what’s a NFT exactly?

NFT stands for non fungible token. This is a token that’s unique on the blockchain and not mutually interchangeable. This in contrast to for example Bitcoin where it doesn’t matter which Bitcoin you have (1 BTC = 1 BTC). Every ticket issued by the GET protocol will become a getNFT.

Introducing getNFT — Enabling true ownership of a unique and scarce digital asset; smart tickets.

getNFTs are indivisible, meaning that a getNFT can only be held by 1 address at the same time. This ensures that whoever owns a certain NFT will be the only one to decrypt the QR code.

Eventhough GET’s NFT’s will be the most used, bought & traded NFT’s in the crypto space the goal isn’t to ride the hype. Ticketing + NFT = a match made in heaven. And here’s why:

As every ticket on the blockchain will become a NFT and thus unqiue, it will allow non custodial ownership of the ticket asset. This gives many interesting advantages but 2 stand out for me personally: P2P ticket trading & DeFi event financing.

P2P ticket trading
NFT’s will allow P2P ticket trading and GET’s almost done building it! Peer to peer ticket trading means that everyone who owns a getNFT ticket will be able to trade it with another “peer”. This will happen in a closed and regulated ecosystem. This means that certain rules can be set by the event organizer. For example:

  • The ticket can be sold for only x% profit
  • x% of the trade profit goes to the event organizer
  • a certain trading fee goes to the event organizer

This will be the first and only ticketing system that will allow ticket trading while at the same time making scalping impossible. Regulators have been struggling for a long time to solve this problem and what seemed impossible to achieve will be made possible by smart contracts! The impact of this will be huge and will change the ticketing space for the better.
Additionally and not unimportantly it will give the event organizer an extra revenue stream. The money that right now for a large part goes to scalpers (the secondary ticket market is worth $15B) will be tapped into by the event organizers.

The advantage for GET holders is twofold:

  1. The P2P market will atract more users (artists, venues, ticketing companies) of the GET protocol (= more GET needed in the primary market)
  2. every ticket exchanged in the secondary market is an additional statechange (= more GET needed)

Event financing
Without a doubt one of the most promising and exciting things to look forward to in 2021 is the introduction of decentralized event financing to GET Protocol.
Event organizers often struggle to get financing for their events. This doesn’t only apply to starting artists, but even to famous stars. The artists need to have a lot of capital in advance as they have to pay for the venues, organisation, … upfront while only receiving the money after the show is over. Enter GET’s DeFi solution!

The pre-financing of events for event-organizers is not a solution looking for a problem; it’s a widely known and used tool that enables event organizers to make the investments needed to get their shows or festivals off the ground.

In the past we have encountered Event Organizers who select their ticketing partner solely based on the amount of money and loan conditions that they are offered up front.

Thanks to getNFT tickets you’ll be able to pre-finance events of your choice. You can choose to finance new artists (more risk/more APY) or established kpop stars (less risk/less APY).

This is how it will work:

The technical side of the process

If the concept seems complicated, here’s what you need to understand about GET’s decentralized financing solution:

1.) Event organizers will be able to easily pre-finance their events. (Something they desperately crave.)

2.) Investors will be able to invest in events of their choice, at a risk & reward level that they feel comfortable with.

3.) The $GET token is an integral part of the financing process, as it is required for ‘skin in the game’ from

The advantage event financing for GET token holders will bring is again twofold:

  1. As a GET holder you’ll be able to finance events and share in the profit of the ticket sales. This means that GET will allow you to profit without selling = passive income. An important note is that this is profit without inflation. While other DeFi projects give you returns by increasing the supply (and thus decreasing the value of the token) the returns here will not increase the GET supply, as the returns come from real profit(ticket sales).
  2. As the GET token will be an integral part of this process, it will:
    - increase the buy pressure of the GET token (everyone who wants to participate will need GET)
    - decrease the supply (everyone who participates will have to locks his GET tokens).

For a deeper insight I recommend the blog below:

The first decentrally financed event is expected to take place in the first half of 2021.

Statechanges

For those who are not familiar with the concept of statechanges:

Every ticket issued on the GET protocol goes through several statechanges. A typical ticket goes through at least 4:

  1. ticket created
  2. ticket unblocked
  3. ticket sold
  4. ticket scanned

You can track them on the blockchain through a community created website. With getNFT’s coming up and everything happening on layer 1 from then on, a ticket explorer will be released in Q1 this year. It will allow you to track everything with even more information on the origin of the statechanges (such as the name of the event, ticketing company, …).

We expect the first version of the NFT ticket explorer to go live in Q1 of 2021.

Every statechange requires 0,07€ worth of GET to be paid by the ticketing companies. So for a basic ticket they need 0,28€ worth of GET/ticket, which they buy from the market and which, after usage, are burned.

These are the ticketing companies using GET for all their tickets and producing statechanges:

GUTS: the first user of GET and created as a showcase that GET works. Has perhaps grown into the biggest ticketing provider in The Netherlands.
https://guts.tickets

GetTicket: a South-Korean ticketing company using GET. Has deals in line to sell tickets for kpop stars.
http://getticket.kr

Wicket Events: an Italian ticketing company that recently started using GET. They just ticketed their first event: the Hostaria wine festival in Verona. Usually this is an event that atracts more than 30k visitors. But last year, due to covid19, the numbers were obviously lower. It’s a very promising sign that they were able to start with and land such a big and important event. Good things to come from them!
https://www.wicketevents.com

TecTix: a German ticketing company that has recently been established. Due to Covid19 they haven’t ticketed any events yet. But I have no doubt that they have a lot in store!
https://tec-tix.com

GET whitelabel

GET protocol’s whitelabel allows for any existing & new ticketing company to integrate GET’s backend and make their tickets truely digital. It gives them the opportunity to make their tickets smart and tap into all the advantages blockchain offers at a low investment cost (they only need the GET token).

So I expect the integrations and new ticketing companies joining to truely kick off soon!

This forms another bullish case as the expectation is that (future & current) integrators will start accumulating GET soon (which is cheap right now) as they’ll need it to issue & sell tickets.

A piece from the GET Update December ’20 blog

My cautious price prediction

This is not financial advise and is my own personal projection based on the adoption, usage & anticipated growth in combination with the tokenomics.

GET protocol is a project that isn’t yet driven by speculative price increases. Going into 2021 I think the narrative of a deflationary and multipurpose token that has a lot of adoption and even more potential will be formed. This will atract investors and speculators.

But I will leave that out of the equation since it isn’t needed to create a price increase, as every ticket sold creates buy pressure and decreases the supply forever. But keep in mind that it will go a lot higher and faster once this narrative is formed and accepted.

The demand for GET will keep increasing through adoption and the supply decreasing as the used GET are destroyed forever

Below is an organic price growth projection driven by usage + buybacks based on the following:

  1. my own ticket number projection (which is far from unrealistic imo and I have many reasons to believe it will happen)
  2. the price following the burns in the sense that it only allows 5% of the supply to be burned per year

At the rate GUTS is growing and new ticketing companies being integrated (I expect a few dozen to be using GET in a few years) I think the above numbers are cautious predictions.
It could go even faster if an established, big, ticketing company starts using GET. This is something that’s likely to happen considering all the advantages they get by making their tickets digital. Elminiating scalping & fraud and allowing p2p regulated ticket trading and DeFi event financing are the major drivers. But not the only ones. Below are just a few advantages GET users enjoyed during covid19:

  • Direct communication with all ticket holders
  • Real-time insights into attendees’ status
  • Community building
  • Relevant data collection, also of friends and family who share tickets
  • Controlled management of capacity in a closed environment
  • Guiding attendance flow in certain timeslots
  • Controlled and socially distanced ticket verification

As GET will be decentralised in the future and everything will be decided by token holders through governance, you can see the GET token as a share, where you will own a part of the protocol in the future.
This is the time to invest and own a part of the protocol that you believe solves a major issue and will grow exponentionally. GET is such a protocol and below is the thought process shared on Telegram that I can put myself behind:

Just by holding GET your % owned increases as GET is a deflationary token

GET integrators are are moving into 2021 armed & ready:

Contactless payments, crowd management that can detect social distancing hazards, easy refunding and decentralized pre-financing of events. We’ve built it all.

New and improved tokenomics

Eventhough I believe that GET’s tokenomics are already amazing, I’m looking forward to what the improved tokenomics will bring!

Death by a thousands cuts: Using Moneyball thinking to strike out Ticketmaster

I hope you have enjoyed the blog. As I’m not a professional writer and this is only my second blog ever written I hope you will excuse me for the potential grammar mistakes I made.

I would like to end this with another blog that I recommend everyone to read. It’s written by GET’s blockchain developer Kasper Keunen and lays out the GET Protocol approach to the industry — using the movie Moneyball for context: