Metronome (MET): An ICO With a Fair Distribution?
I’m sure that for most of you have never bought meth but maybe you’ll want to after knowing more about this project. Metronome (MET) is a new cryptocurrency conducting its ICO on June 18 2018. Metronome’s sole-purpose is to be a long-term monetary system. Creators of this cryptocurrency tried to learn from the mistakes of previous cryptocurrencies such as Bitcoin and Ethereum. The cryptocurrency was also engineered to be fully autonomous. MET will not be tied to any blockchain, it therefore has the potential to be secured by many of the best blockchain networks. The most interesting aspect of the project is the distribution of the cryptocurrency.
The technology
The cryptocurrency will use a mix of Proof Stake and Proof of Work concepts.The three core principles of Metronome are the following:
- Self-Governance
Metronome will be 100% autonomously governed by smart contracts which will make it resistant to influence from any single individual or community.
- Reliability
The predictable token supply may have a positive impact on the price predictability of MET.
- Portability
MET is engineered to be compatible with different blockchains. As you can see below, the process is made possible by issuing receipts.
Other planned features include:
- A payment settlement of between 15 and 30 seconds
- Mass pay: allow multiple payments to be sent in one batch
- ERC20 compliant
A lot of work has already been made and the progress can be observed on their GitHub.
Token distribution
The distribution of the cryptocurrency is a very interesting one. There will be an initial supply auction lasting up to 7 days and then there will be a daily supply lot every day, forever.
Initial Supply Auction
The initial supply of MET is 10 000 000 of which 20% will be distributed to founders. Of these 2 000 000 coins, 25% will be available for authors to use after the Initial Supply Auction and the remaining will become available in 12 equal amounts over 12 calendar quarters.
The rest (8 000 000) will be distributed to the public via a descending price auction. A descending price auction works the following way: the initial price is set very high and the price declines as time goes on. In the case of Metronome, the initial price will be set at 2 ETH per MET and the floor price will be 0.0000033 ETH. Every 60 seconds, the price will decrease by 0.0001984320568 ETH.
All proceeds from the auctions are sent to two separate contracts which are designed to provide liquidity to MET owners who may want to sell.
Daily Supply Lot
After this distribution, which will last up to 7 days, new MET will be minted daily and also distributed via a public descending price auction. The inflation rate will either be 2880 MET per day or an annual rate of 2% of the outstanding supply at the time. The greater figure between the two options will be the one chosen for any given day. 2880 MET per day seems pretty high at first. For example if it was the case for the first year, it would give an inflation rate of about 10%. As the supply increases, the inflation rate will go down, as is often the case with other cryptocurrencies.
In the daily supply lot, the price begins at a maximum price of twice the previous auction closing price. Every 60 seconds, the auction price will decrease to 99% of the previous price. The floor price for any daily auction is 1 Wei(the smallest unit of an Ether).
1 Ether = 1 000 000 000 000 000 000 Wei
This distribution seems rather fair. The 20% given to founders may be a bit high but as the supply increases, their part of the pie will decrease. You may already be aware as I mentioned for example in the case of QuarkChain, most ICOs offer large bonuses to big investors and the average people end up buying at inflated prices from them. The auction system should help to have an healthy distribution of the coin and avoid this type of discrimination. It will be interesting to see how this system evolves over time.
The Team
The project has an impressive team of people who have been involved in the crypto space for a while. The CEO and co-founder is Jeff Garzik, well known in the industry for his work on Bitcoin and more recently on SegWit2x. The chief cryptographer is Peter Vessenes, co-founder of the Bitcoin Foundation and the principal engineer is Ryan Condron, who has been working in the crypto space since 2012.
In general, Metronome (MET) seems like a very interesting project, mainly because of its auction system and the fact that the currency should be compatible with many different blockchains. The team behind the project may be a bit controversial in the space but the fact remains that they have a lot of experience in the blockchain space.
Original article: Metronome ICO
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