LockTrip Deploys LOC Burn Economy on Hydra Chain
Dear Hydra & LockTrip communities!
We are happy to announce that LockTrip just deployed a much-anticipated milestone of integrating the LOC economy with the Hydra chain.
As a result of this integration, every booking made on the LockTrips.com travel marketplace will generate a minimum of two on-chain transactions. We will explore the mechanism in greater detail as part of this announcement.
What is LockTrips.com?
LockTrips.com is a travel marketplace that offers customers on average 20% savings on hotel bookings (compared to traditional booking sites). The savings rate can go beyond 60% in some cases.
Actual savings realized by marketplace users in Q3 2021
Below you will find a search for New York City, with the discount scores estimating the percentage savings you will achieve compared to traditional booking sites. You can even sort the results for the highest discounts, in order to secure yourself the best deals!
This makes the marketplace hyper-competitive and allowed LockTrip to announce record booking numbers with a 421% growth rate in Q3 2021:
🔥 3% LOC Burn on every Booking
That’s cool! But why is that relevant for the Hydra ecosystem?
LockTrip is a Hydra-based token project and the LOC token recently migrated from Ethereum to Hydra chain. Along with the migration of the LOC supply and its holders community, the next milestone achieved is the deployment of the LOC economy on Hydra chain.
In particular, every booking made on the LockTrip.com marketplace will from now on result in two on-chain transactions to be made. To understand this, we first need to go into the details of the LOC economy.
Whenever someone makes a booking on the LockTrips.com marketplace, it immediately triggers a conversion mechanism that essentially uses 3% of the booking value to buy LOC from exchanges and burns it. In the example of a $1,000 booking, this would result in $30 to be used for the purchase and subsequent burn.
Example is taken from the LockTrip Telegram group (click image to see original)
Since bookings carry the possibility of being canceled, the marketplace does not burn the LOC amount directly. Burn transactions are irreversible and they destroy involved LOC permanently. Thus it would be impossible for the LOC to be returned and the customer to receive the full refund in the scenario of a cancellation — if the burn happened at the moment of the booking.
To mitigate this problem, the marketplace deposits the LOC into a parking wallet, where the funds remain parked until one of the two scenarios happen:
- The customer to check-in at the hotel, at which point the marketplace executes the final burn from parking wallet → burn wallet
- The customer to cancel the booking, which triggers the LOC to be recovered by savings it from the burn
You will find the parking wallet linked below:
At the moment it holds around 300 LOC, which are waiting to be burnt 🔥.
The burnt LOC end up in the burn wallet, which you will find below:
Here is an example for a burn transaction amounting to 2.13 LOC:
And here is an overview of the latest burn transactions executed:
Since Hydra chain is configured in a way that burns 100% of all transaction fees, this basically means that bookings on LockTrip.com not only burn 3% worth of LOC, but also 100% of the HYDRA transaction fees in the process (after deducting the gas royalty for the LOC smart contract creator wallet).
We are looking forward to a growing number of burns!
If you like saving money when booking your vacation and want to support the Hydra ecosystem, we recommend checking out the marketplace:
Hint: Due to industry-wide rate parity agreements and the fact that LockTrip pricing is undercutting competitors, we are forced to hide pricing behind a login-interface. Thus, you will only see the pricing revealed after logging in. Registration is free and can be done through instant-login options such as Facebook, Google, and Twitter.