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AMA

Meter AMA Full Transcript

AMA (Ask Me Anything ) was conducted with Meter on 02 July 2020 at 3:30 PM UTC live on our telegram group .

About Xiaohan Zhu :

I have a mixed engineering and finance background. first 15 years of my careers are in R&D and engineering. Afterwards I got my MBA from Wharton and started doing strategy and investment. Back in 2016 I formed a VC fund with focus in fintech. That is when I started entering blockchain. in 2017 many of our portfolio started doing tokens include Brave (BAT) and Aion. We started investing in cryptos as well. 2018 I finished the first fund and decided that I enjoyed BUIDL more. That is when I started working on Meter .

About Meter :

Meter is a fully-decentralized, permissionless, low-volatility cryptocurrency that eliminates counterparty, regulatory, and oracle risks typically found with crypto- and fiat-backed coins.

Meter employs a unique hybrid consensus protocol that separates currency creation from record keeping.

The system uses Proof of Work to create the MTR low volatility coin, making it as decentralized and secure as Bitcoin. Proof of Stake is used to manage the ledger; validators who hold Meter’s governance token, MTRG, approve transactions.

This hybrid consensus mechanism makes Meter fast – the system can process thousands of transactions per second, reaching finality in seconds – and super secure.

Meter also functions as a Layer 2 sidechain for other public blockchains to allow value interaction among different crypto assets.

Yes we have two coins. MTR is uncensorable, sound, stable money. MTRG is the governance coin in the system similar to MKR and COMP, but with more functionalities and deeply integrated into the system’s consensus process .

Questions from theblockcircle :

Q .What are the Problems with other stablecoins and why Meter is better ?

All the stablecoins so far are pegged coins actually, especially to the USD. However based on international finance theory. There are only two ways to maintain such pegging at scale. The Chinese way, where you do not allow free flow of capital or the HongKong way, where you have 100% reserve in the currency you peg to.

Yup. Basically based on finance theory only USD backed stablecoins could maintain pegging to USD at scale. Unfortunately they will have to be centralized solutions and subject to all the regulatory restrictions. At the end of the day, it is the central banks’ job to create such coins.

Crypto backed stablecoins like DAI first have capacity issues as it could only use a very small portion of the backing assets as collaterals to avoid causing liquidity problems of the backing assets. It also has to rely on oracles, which is typically centralized (there are just a handful of good data sources in the world). If oracle provides wrong data, the entire financial system is subject to fail. This maybe too much of a systematic risk.

Meter is designed to avoid such systematic risks. It gives up strong pegging to USD, but could maintain a economically stable value. Each MTR is created with 10kwh of SHA256 Proof of Work, the same method used by BTC. Miners’ profit chasing behavior will drive the coin to the cost of global competitive electricity price, which is more stable in purchasing power than any fiat in the world. We expect the market price to settle in the 0.7 to 1.5 USD range and will be more than more stable as it grows. Permissionless mining also eliminates counterparty, regulatory, and oracle risks typically found with crypto- and fiat-backed stablecoins.

It is a new social economic experiment that we would like to invite everyone here to watch and to participate😀 .

similar to when BTC was lauched .

Q. Why your consensus mechanism (hybrid of PoW and PoS) is better than those alone ?

If we look at all existing crypto currencies, people are mixing currency creation with record keeping. However they are fundamentally two separate consensuses. Recording keeping’s goal is to prevent double spending. New currency creation is a process to reach agreement on the value of newly created coins. It is typically implicit and expensive. In PoW system it is performed by the miners, while PoS system there is no such consensus, only arbitrary inflation numbers from the developers.

PoV clearly separates two consensensus. It uses PoW for the value consensus to create the low volatility coin MTR, and PoS with the governance coin MTRG for record keeping. Such approach surprisingly combines the benefits of both worlds. PoW will be less energy consuming due to the economic game design, transactions could be processed really fast with instant finality. Also some of the PoS problems like long range attack and rich gets richer could be avoided as well. Details could be found in our blog post.

https://medium.com/meter-io/what-is-proof-of-value-consensus-meter-c47f989065fa

Community Questions from Twitter :

Q. I stand ground that one of the critical steps in #DeFi is to develop a base layer resolution that is free from any centralized interference and impervious to attacks. What is Meter’s action plan in achieving this?

Our first step is the create a base layer low volatility crypto native currency that is fully decentralized and free of oracles. It addresses the typical DeFi attack vectors from oracle and smart contracts. We are also building low level integrations with Chainlink and Certik to increase the reliability of oracle and early vulnerability detection.

It is a process to build a secure DeFi stack which I totally agree.

The advantage of Meter is that we could optimize the entire stack for DeFi .

rather than just patching the smart contract layer .

Q. DeFi is a term that has been mentioned a lot along with the token economy, emerging as one of the most active sectors in the blockchain space, with a range of use case for developers, individuals, and institutions.

If I may ask; How will the cross chain Defi work on Meter ?

Cross chain is the next big item once we launch the mainnet, we will start working on cross interactions with other chains like ETH, BTC, Cosmos and Polkadot. From those chains’ perspective, Meter is just a layer 2 side chain on their network. Our goal is to break the boundary of different crypto silos.

We have already had very deep technical collaborations with many teams working on this field .

The short answer is we are working on it😀 .

Q. In terms of regulation, are you fully compliant that will ensure peace of mind among investors? Do you think METER IO is ready to face the challenge of government regulation?

In developed countries, the law makers usually follow the due process with the goal to protect small investors. The benefit of MTR currency is that it is fully decentralized. As the development team we have no premine or any other advantage either. It makes MTR more like a digital commodity than a security. This makes MTR very unlikely to subject SEC’s regulation for example. MTRG as the governance coin. It may subject to SEC regulations and we have setup the legal structure fully prepared for this.

For example we did not do any token sale or private sale before the mainnet launch. Only used the most traditional equity investment from renowed VC firms so far .

Q. All things payments are plagued with security threats, sybil attacks. How secure are you and how robust are you to handle 21st century payments needs in DeFi

Yes. The ledger is protected by PoS with the most advanced consensus algorithm called HotStuff (Libra uses a variant of this consensus as well). The attacking vector is 1/3 of faulty nodes. Once we launch the mainnet, we will gradually open up for PoS validators. Meter’s consensus design could handle thousands of nodes to increase the difficulty of attacks.

We have run the test nets with public validators since last December. That shows how serious we are regarding to security .

We have also done a security audit with slowmist before the launch .

Live Community Questions :

Q. Users often care less about technology, but rather the value of the token. How do you manage to strike a balance between developing the technology and also improving the value of MTR ?

Yes definitely. MTR is actually a low volatility coin. MTRG is the coin with limited supply and subject to speculation. We have a lot of things arranged on the MTRG side. For example there is an upcomming IEO on gate.io

Q. What are the advantage for Validators at #METER and What are the requirements to become a validator of #METER?

You could earn block rewards on the network as a validator. The requirement will not be that high compare to other network. We estimated the token you will have to stake to be about $1000 to $2000 range .

Q. Why do you need a Governance token, and what’s the difference between your MTR token and your Governance token?

Because the base payment layer requires a stable value currency, while you will need another coin to keep people incentive and participate in the game early. They are two conflicting requirement and that is why we have to separate them .

Q. Why did you decide to peg Meter with electricity? Electricity is not a tangible thing, instead USD is. Explain us a little the reasons

USD is not a tangible thing either. It used to be when it was backed by gold, but now it is just an accounting unit in central banks book. Electricity is the only link between the physical world and the crypto world and it is surprisingly stable in purchasing power as the civilization and all important goods requires electricity .

Q. What are the main milestones so far that the Meter team has achieved? and what other milestones do you want to achieve in the future?

Basically we worked two years to build an EVM compatible chain from bottom up with the new economic game and consensus design. The next step is gradually open up the mainnet for the MTR to MTRG convertion, open staking. After that is the layer 2 cross chain capabilities and DeFi applications like synthetic assets and etc .

Q. Currently a true stable currency is only possible if its supply and demand is balanced relatively to prices, right? how would this work inside Meter?

Why did you call it a new social economic experiment?

The supply side is from the miners. Their profit chasing behavior will cause them to only create MTR when it is needed (meaning they could sell MTR at a profit). The demand side will be all the consumptions in the system like transaction fees gas and etc. Most importantly is to obtain MTRG. You could think the MTRG as the real bitcoin, while MTR is the mining credit for obtaining the bitcoin .

Q. What are the ways that Meter generates profits/revenue to maintain your project and what is its revenue model ? How can it make benefit win-win to both invester and your project ?

Basically once the network starts fully running. There will be daily onchain bidding for MTRG tokens. The proceed from the bidding 40% goes to the validators as block rewards and 60% will be retained in the system the MTRG token holders could borrow against them in the future. we will be one of the participants on the network as well and the income from staking will be able to support the team. We will also build more application on the platform which has more revenue models .

Q. You write that you will not use oracles. How will you receive and check the data you receive?

That is the beauty of the economic game, we do not have to rely on any external data. Miners’ profit chasing behavior will create a feedback in the system. Since it is fully transparent on the blockchain, the equilbrium could be reach pretty quickly .

Q. How can MTR help emerging market countries? Do you plan to dedicate efforts in these places? DeFi is a solution to some of people’s financial problems?

We believe DeFi in its current format is far from enough. It is more designed for whales and speculators. Although they are important, the long term growth of the crypto space requires more users. Meter’s dream is to achieve satoshi’s original vision, create an open financial network for the entire world, espeically in developing countries. We are working on payment and credit related products targeting regular users in both Latin America and north america .

Q. Let’s say all major FIAT currencies lose substantially in value due to a global crisis. Could Meter then be decoupled from it’s peg in order to keep it’s value despite the global crisis?

Electricity price is surprisingly stable in term purchasing power from the historical data. We have data shows that from 1960 till now the electricity price measured by USD has gone up by 6.3 times, but if you adjust for inflation it stayed the same. That is why we believe it is a good mesurement of values in the physical world .

Q. What do you think is holding the DeFi space back? What is preventing the mass adoption of DeFi products?

It requires a solid foundation to build a correct financial system in the decentralized society. DeFi should be much border instead of just targeting whales on ETH. In addition, more crypto assets needs to join the movement as well. That is what we work on in Meter .

To stay updated on all things Meter, join us on Twitter (https://twitter.com/Meter_IO) , Telegram(https://t.me/Meter_IO) , Discord(https://discordapp.com/invite/meQh6S6), Facebook (https://www.facebook.com/MeterFoundation/), and YouTube (https://www.youtube.com/channel/UCgQVD2Ab-i3IKUhjs6-Z76w).

AMA winners from Twitter are :

https://twitter.com/_rhythms29

https://twitter.com/Cryptochiller

https://twitter.com/Red112527

https://twitter.com/ejioforkel

AMA winners from telegram are :

@Aleurich

@rockmorti

@Nickkiii

@Mike1945

@endtimeprophet

@AndrySTP

All the above winners are requested to dm @mikewchan on telegram .

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230 cr
230 Cr has been interested in the cryptocurrency since 2017 when his friend introduced him to bitcoin .Interested by the bitcoin technology and suffering from centralised banking system he then decided to pursue his career in this space .

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