Tokenomics is the science of how a token creates and distributes value within its ecosystem. For Travala.com, the native token AVA is the cornerstone that not only facilitates transactions but also fosters loyalty, drives growth, and shapes the decentralized future of the platform. Understanding the mechanics of AVA is crucial for realizing its value and role in the travel industry.
Token Type: Utility and Governance (Future)
AVA is designed as a utility token, which means its primary function is to provide access to certain services and benefits within the Travala.com ecosystem. In the future, as the platform evolves, AVA is expected to also play the role of a governance token, allowing holders to participate in decision-making regarding the development of Travala.com.
Burning Mechanisms of AVA: Deflationary Pressure
One of the most important features of AVA's tokenomics is the burning mechanism. Travala.com regularly buys back AVA tokens from the market and permanently destroys them. This process is typically funded by a portion of the profits generated from bookings on the platform. The goal of token burning:
Reduction of total supply: Reducing the number of AVA in circulation makes the remaining tokens more scarce.
Increase in value: Increasing scarcity with constant or growing demand can lead to an increase in token value.
Link to platform performance: The burning mechanism directly ties the success and revenues of Travala.com to the value of the AVA token, benefiting holders.
This deflationary mechanism distinguishes AVA from many other tokens and is a powerful tool for maintaining and increasing its value in the long term.
Smart Program Loyalty Program: Staking and Rewards
As mentioned earlier, the Smart Program is the heart of the AVA ecosystem. Users stake (lock) their AVA tokens for a certain period to gain multi-level benefits.
Staking for Discounts: The higher the Smart level (determined by the amount of staked AVA), the greater the percentage discount on all bookings on the platform. This is a strong incentive for users to hold AVA.
Staking Rewards: Locked AVA tokens generate passive income in the form of additional AVA, creating an incentive for long-term holding.
Booking Rewards (Travel Credits): For every booking made on Travala.com, users receive cashback in AVA tokens. This encourages repeat bookings and ensures constant demand for the token.
These staking and rewards mechanisms create synergy: the more people use Travala.com, the greater the demand for AVA for discounts and cashback; the more AVA is staked, the fewer tokens are in free circulation, which also affects their value.
Token Distribution and Supply Limit
The total maximum supply of AVA tokens is limited. Initially, it was 615,715,109 AVA. However, thanks to the burning mechanism, the circulating supply is constantly decreasing. The distribution of tokens was carefully planned, including early investors, the team, the community, reserves, and staking rewards. It is important to note that a significant portion of the supply is intended to stimulate the growth of the ecosystem and reward users.
The Role of AVA in the Broader Crypto-Ecosystem
AVA does not exist in isolation. It is traded on major exchanges such as Binance and is part of various blockchain networks. Initially, the token was on the NEO blockchain, then migrated to Binance Chain (BEP-2) and subsequently also became available on Binance Smart Chain (BEP-20, now BNB Chain) and Ethereum (ERC-20). This cross-chain compatibility increases the accessibility and liquidity of AVA, making it more attractive to a wide range of crypto users.
In conclusion, the tokenomics of AVA is a well-thought-out system that creates a cyclic economy: the more people use Travala.com for booking travel, the more AVA is burned and more tokens are staked for benefits. This, in turn, increases the scarcity and potential value of AVA, attracting new users and stimulating further growth of the platform. AVA is not just a token; it is the engine that drives the revolution in the online travel booking industry.