Travala has announced that it plans to migrate its AVA token to the Binance Chain and begin a token buyback and burn program. Travala is an online travel booking platform that allows users to purchase hotels in cryptocurrency and receive discounts and rewards through the usage of AVA.
In a Medium post published by the company, Travala stated the move was part of its “determination to improve the token economics of its native token (AVA), while offering faster processing times, better performance and ease of on-chain use of AVA within the platform.”
Buyback and token burn
Travala intends to reduce the circulating supply of its AVA token from 61,571,086 to 40,000,000, a reduction of 35%. Each quarter, Travala will purchase AVA tokens off the open market based on 20% of its net revenue. The buyback and burn will begin in January 2020, however, it will be backdated to July 2019 to “kickstart the process,” meaning the first burn will take into account revenue earned between July 1st and December 31st.
Binance Chain migration
Travala will migrate its NEP-5 AVA token to a Binance’s BEP2 standard at a 1:1 ratio, with mechanics and timing still to be announced. According to Travala’s FAQ, users that do not swap their NEP-5 AVA will have their tokens permanently burned, however, Travala stated that it would allow “plenty of time” to perform this swap.
Following the migration, Travala will apply to be listed on the Binance DEX, and integrate Binance’s BNB coin as a “preferred payment method” on its booking platform.
In July 2019, Travala reported an investment from NEO EcoFund of an undisclosed amount that was “earmarked towards global growth, marketing, and talent acquisition.” According to CEO and co-founder Matthew Luczynski, Travala planned to use the funds to double its developer team within the next six months.
Travala also recently added NEO as a payment option on its platform.
The buyback and migration announcement can be found at the link below: