Deep Dive into the AVA Token Migration to Binance Chain and the Buyback and Burn Program

4 min read

With impressive month on month organic growth in bookings on its Alpha platform, Travala.com is establishing itself as the premier blockchain travel booking platform. Travala.com is now ready to undertake the iterative upgrade from the Alpha platform to the Beta milestone. This milestone will result in a high capacity, future proof, feature rich platform and prepare Travala.com to move into full production mode, followed by a concerted push into the mainstream market that won’t disappoint.

To fully accommodate the requirements for mass adoption Travala.com have decided to undertake a migration to the Binance Chain. This migration will allow Travala.com and the underlying AVA token to be at the forefront of capacity with high transactions per second and scalability that is offered via the Binance chain. Each of these components will be critical for a globally performant platform destined for mass adoption and for the token at the heart of the Travala.com ecosystem.

AVA is the utility token for the Travala.com platform rewarding users for interacting with the platform (i.e making hotel bookings, leaving reviews or referring friends) and empowering discounts for holding certain levels of AVA within the platform through our Smart Discounts and Loyalty Program

The team are very happy to release the next major evolution in the token economic growth in the form of regular Buyback and Burns events. Each quarter 20% of the net revenue will be used to Buyback AVA from the open markets with these AVA tokens “burned” from circulation.

About the Buyback and Burn:
A token burn is the action of destroying a specified number of tokens from the total supply increasing the scarcity of the asset.

The volume of AVA coins to be repurchased from the open markets and burned each quarter is based on 20% of Travala.com’s net revenue.  The more bookings on the Travala.com platform within each 3-month period; the more AVA tokens that will be repurchased and burned. 

At the time of writing, the total supply of AVA is 61,571,086. Travala.com’s new Buyback and Burn Program will take place every quarter until 21,571,086  AVA are permanently removed from circulation, which represents 35% of the current total supply. Ongoing quarterly buybacks and burns will take place until the overall supply of AVA will be significantly reduced to just 40,000,000.

About the Binance Chain:
Binance Chain is a peer-to-peer distributed system, connecting together multiple clients that reach consensus on their views of the “state of the world”. Binance Chain uses Tendermint BFT consensus and has a dedicated application layer that runs upon it. 

Binance Chain can be characterised as follows; 

  • Low cost transactions
  • High performance: low latency, high throughput for a large user base, and high liquidity trading. Targeting to achieve 1 second block times, with 1 confirmation finality.
  • No custody of funds: traders maintain control of their private keys and funds.
  • Evolvable: able to develop with forever-improving technology stack, architecture, and ideas.

For more information please see the official Binance documentation:

Tokens running on the Binance chain are “BEP2” assets.

Integration with Binance DEX (Decentralised Exchange):
A decentralised exchange is different to a CEX (centralised exchange) in the way that you control your funds. Assets remain yours and are not held by a central authority. 

AVA will apply to be listed on the Binance DEX: https://www.binance.org/en

Binance DEX is the native marketplace on Binance Chain, allowing you to exchange digital assets issued and listed on it. The matching happens within the blockchain nodes and all of the transactions are recorded on-chain, therefore forming a complete, auditable ledger of activity.

About the AVA token Swap from NEO to Binance Chain: 
Once details are released regarding the swap you will need to ensure you AVA is swapped according to the outlined process within the allocated time frames. AVA will be Swapped at a 1:1 ratio from NEP5 to BEP2 and you can rest assured that this will be made as simple as possible allowing you adequate time and support to complete the swaps.

FAQs:

How do I use the Binance Dex ? 
https://docs.binance.org/tutorial/how-to-trade-on-binance-dex.html

When will the migration to Binance Chain and AVA token swap happen?
Details will be announced soon. We will provide further details and timelines for the migration and the AVA token swap process in due course. In the meantime, for AVA (NEP5) tokens, its business as usual. Please only follow official blogs and documents for swap details and stay vigilant.

What happens to AVA while the migration and token swap is not completed?
No action is required. We will inform everyone with plenty of notice when the option to swap tokens will be available, after all the necessary testing has been completed. Existing AVA (NEP5) tokens will continue to operate as usual; AVA holders can still deposit, withdraw and trade them at all the exchanges supporting AVA. 

What wallets will be compatible with AVA as a BEP2 token?
There are a large array of supported wallets for BEP2 tokens for all different devices (Mobile, PC, MAC) as well as hardware wallet support (Ledger Nano). We will keep the community informed of the wallets where you will be able to store your swapped AVA (BEP2) tokens in due course.

What about the existing AVA uses cases?
All the existing AVA use cases will continue as per normal with the additional buy back and burn program: See use cases for the AVA token

When will the first burn occur ?
The first burn will take place in mid January 2020 marking the 1st of the quarterly burns. We will be back-dating this to July 2019 to kickstart the process. So the first burn will be for 6 months or two quarters together, taking into account revenue figures from the 1st July 2019 to 31st December 2019. 

What happens to AVA that is not swapped ?
AVA that is not swapped within the defined timeline will be burned , permanently reducing the total supply. However, all AVA users will have plenty of time to perform this swap.

What happens to my SMART Membership on the site ?
Any active SMART memberships will continue as per normal. AVA (NEP5) tokens within the platform will be swapped automatically to AVA (BEP2) once we are ready with the new in-built platform wallet.

What happens to rewards we have on Travala.com ?
No changes, all rewards remain yours! AVA (NEP5) tokens within the platform will be swapped automatically to AVA (BEP2) once we are ready with the new in-built platform wallet.

How and when will Travala.com report on the buyback and burn events?
Once each buyback and burn event is finished, we will share this via our official social channels and blog in the from of a Burn Report.

Will there be an AMA to allow the community to ask questions regarding this significant development?
Yes we will conduct an AMA on reddit with the founders and senior management on Reddit. We will announce a specific time and date via our varied social media channels.


Travala.com is the leading blockchain-based travel booking platform with 1,700,000+ properties in 230 countries and territories and a champion of cryptocurrency adoption. We accept most leading cryptocurrencies as payments and we have developed an innovative tokenized incentive model. Our prices are 15% cheaper on average than other mainstream travel sites.


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