January 2020 Burn Report – LockTrip
Thanks to the recently deployed burn mechanism, we are able to share the second burn report related to LOC Economy 2.0. The first report for December 2019 can be found here.
About the Mechanism
Every booking made on our marketplace triggers a LOC burn equal to 5% of the booking value. These are specifically bought from exchanges and sent to the parking wallet.
When the customer checks in to the hotel, we consider the booking as final and the parking wallet executes the final burn transaction. If the customer cancels the booking, the parking wallet returns the balance into circulation.
Burn Rate
The burn mechanism continuously removes LOC from the circulating supply, driven by booking volumes.
In January we saw the burn rate more than double from 4.02 LOC/day to 8.87 LOC/day. This was in line with our expectations as many of the bookings made in December were only executed in January when the customers checked in to their hotels.
Our guidance for February is that the burn rate will continue to grow moderately and possibly surpass the 10 LOC/day barrier.
Another fundamental metric is the cumulative amount that has been removed from the circulating supply.
The first full month of the burn mechanism allowed us to burn 275 new LOC, for a total of 675 LOC.
More importantly, the parking wallet saw a strong jump to well above 1,000 LOC stored, up from only 600 LOC a month ago. This is the result of a strong January in terms of bookings. Adding the burnt and parked amount, we end up with 1,750 LOC at the time of writing.
Verify the Numbers
Burn Wallet
Parking Wallet
And don’t forget to Join our Community
LockTrip allows you to save on average 20% on your hotel bookings by cutting out middlemen. Browse our marketplace for your next stay!
Published at Sat, 01 Feb 2020 15:45:10 +0000
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