Metronome (MET)

Metronome (MET)

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November 15, 2018 by matthewrobinson
466
Metronome Metronome is a new cryptocurrency that focuses on cross-chain portability, sustainable economics, and self-governance. It is a true cryptocurrency, meaning that its only purpose is to be used as sound money. According to Jeff Garzik, CEO of Bloq and Metronome, “Metronome is designed to be here in the next decade, the next two decades
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Metronome

Metronome is a new cryptocurrency that focuses on cross-chain portability, sustainable economics, and self-governance. It is a true cryptocurrency, meaning that its only purpose is to be used as sound money. According to Jeff Garzik, CEO of Bloq and Metronome, “Metronome is designed to be here in the next decade, the next two decades and the next 100 years. It is built to last.” The Metronome team examined the shortcomings of cryptocurrencies including slow settlement times, lack of money supply longevity, and governance issues, then designed the ideal cryptocurrency to eliminate these existing issues.

Issues with Cryptocurrency as Money

Many popular cryptocurrencies possess design shortcomings which prevent them from being ideal digital money. For example, sometimes Bitcoin has high transaction fees and slow settlement times and cannot interact effectively with smart contracts. Ethereum was not designed as a cryptocurrency, but instead to function as gas for decentralized applications. In addition, Ethereum is missing critical features for value exchange such as mass pay. Many alternative cryptocurrencies are not actually trustless, as smart contract operators have the ability to create unlimited coins. Often, cryptocurrency ICOs are not a fair way to distribute coins, with some ICOs favoring team member and early investors, resulting in a concentration of wealth.

Metronome Solution

The following aspects of Metronome’s design make it truly unique:

  1. Cross-Chain Portability

  2. Fair Distribution and Sustainable Economics

  3. Self-Governance

Cross-Chain Portability

Metronome is unique because it allows users to move their tokens from one blockchain to another. A simple way to understand this is to visualize Metronome as a boxcar that sits on top of railroad tracks (blockchains). While the boxcar can be transferred to different tracks, it remains the same boxcar. According to the Metronome owner’s manual “Metronome rides on top of other blockchains to help solidify its self-governing nature and better allow it to endure.”

By using a proof of exit receipt, the supply is able to be accounted for across various blockchains. MET (Metronome) is able to be burned on one chain and imported on the destination chain. Metronome inherits properties from the blockchain that secures it.

Fair Distribution and Sustainable Economics

Metronome did not have an ICO but instead used an innovative distribution mechanism. An initial token supply of 10,000,000 was created and 20% was retained by founders. The remaining 8,000,000 tokens were sold in a descending price auction. The initial supply auction price was set at 2 ETH per MET with a floor price set at .0000033 ETH. Every 60 seconds, the MET auction price decreased by 0.0001984320568 ETH, linearly. The auction continued until the entire 8,000,000 token inventory was sold.

The descending auction mechanism is used daily to distribute new tokens. According to the Metronome owner’s manual “Every 24 hours, new tokens are added to the Daily Supply Lot following the previous auction’s close ad infinitum, at the rate that is the greater of (i) 2,880 MET per day, or (ii) an annual rate equal to 2.0000% of the then-outstanding supply per year.” Unlike many cryptocurrencies, Metronome does not have a maximum supply.

According to David Bernstein of Otium Holdings, “The endless debate of whether a fixed token supply or a perpetually growing token supply is better has not been solved as of yet – but the Metronome team did utilize a quite novel strategy. Centuries of economic research and decades of central bank evolution have concluded that a 2% inflation rate allows for a sufficiently stable currency. As such, the Federal Reserve has an inflation target of 2%.”

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Self- Governance

Metronome is entirely self-governed through the following 4 smart contracts:

  1. Token smart contract: The token contract allows users to send Metronome, using a standard ERC-20 token contract.
  2. Auction Contract: The auction contract mints MET and allows users to purchase it in the daily descending auction using ETH.
  3. Proceeds contract: The proceeds contract is like a self-managed savings account where the ETH from the auction contract is deposited.
  4. Autonomous Converter: Every 24 hours, .25% of the total proceeds balance goes to the autonomous converter contract. This functions as a decentralized autonomous changer between ETH and MET.

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Team

Jeff Garzik, the CEO of Metronome, was an original contributor to the Bitcoin code. He worked with Satoshi Nakamoto in order to help improve Bitcoin. Because of his background, Garzik is uniquely positioned to understand the engineering and market challenges of cryptocurrencies. Metronome was co-founded by Matthew Roszak who has spent over 17 years in private equity and venture capital and has invested $1 billion+ of capital in a broad range of industries. Previously, Mr. Roszak was a principal at Advent International, one of the largest international private equity firms, managing over $15 billion. The Metronome website lists 15 employees including cryptographers, engineers, data scientists, software engineers, marketers and more.

Risks

Metronome is still very new (launched on June 18, 2018). Marketing has been limited and the project is still largely unknown. As a result, the existing Metronome community is small. In addition, the project is experimental, since it is designed differently from every other cryptocurrency and has not yet fully implemented cross-chain portability. While a unique design may result in the biggest advantage of Metronome, it does increase uncertainty for investors.

Conclusion

BlockWolf analysis reveals Metronome as a hidden gem in the cryptocurrency space. With a market cap of only $15,000,000, MET has a large upside potential. The team, tech and token economics lead us to believe that Metronome team will execute, and MET will become a widely adopted cryptocurrency Metronome is already listed on many different exchanges such as Bittrex, Upbit, IDEX and more. In addition, investors can now buy Metronome on the daily auction or can use the autonomous converter to exchange ETH for MET.