We held an engaging, interactive AMA in Generation Crypto's Telegram English Chat today. CEO Xiaohan Zhu and CMO Mike Chan answered questions from GCrypto's over 4100 members about:

  • Meter's role in DeFi
  • The network's unique hybrid consensus mechanism
  • How we plan to build our global community
  • And much more!

Check out the full transcript below and let us know what you think!

AMA Questions

Q. -How permissionless is Meter network, can anyone join the network and start creating the token?

-What mechanism have you put in place to ensure the cost of production for Meter tokens is consistent and unable to be gamed?

Xiaohan:

You could start from the PoW side to mine MTR tokens.  You don’t have to have any coins.  The MTR coins could be converted to MTRG through onchain bidding process.  Then you have the governance coin MTRG for PoS and validation.  In our PoW algorithm, we benchmarked the average number of hashes needed to created a coin to around 10Kwh electricity consumption with mainstream BTC miner.  The energy efficiency automatically enhances based on a builtin Moores law type of curve and can be adjusted through governance

Q. - Oracles play a massive role in Defi and that needs to be made better. How does Meter solve this issues?

- Is there a mechanism where you use MTRG to counter balance any black sheep/big dip event like the one that happened in DAI?

Mike:

Unlike many other stablecoins, we don't need oracles or collateral to create MTR because it is PoW mined. But since we are DeFi infrastructure, we understand the importance of oracles in DeFi apps built on top of our network. So we've partnered with Chainlink and DOS to provide those services to our developer network. 

We won't face the black sheep event because we don't need oracles nor collateral!

Q. Why Meter is Better Money? How can Meter provide privacy to user date?

Xiaohan:

It is a layer 1 money that avoid the counter party, oracle and capacity issues in existing stable coin solutions.  Competitive electricity price is more stable in purchasing power than any fiat currency in the last 70 years.  On privacy aspect, we currently have the same privacy level as ETH.  We are also working with several privacy projects like Suter, Oasis to bring privacy to Meter users

Q. Most of the priorities of the cryptocurrency community are symbolic pricing. When prices go up, society rejoices and grows. When they fell, many people started throwing them in a negative way. How will eMTRG solve the negative problem when the price drops?  What are your plans to strengthen and develop the community so that more people see the product than the price?

Mike: 

We understand how investors in Meter feel when the price goes up and down. We explain that we have long-term view and vision of how DeFi, cross-chain interoperability, and stablecoins should work, and continue to build toward that vision. We have been building since early 2018, and not for two weeks like many other DeFi projects, and this only strengthens our long-term outlook.

Q. Electricity doesn't have the same monetary value around the world, how the price of 10kWh of electricity calculated in meter?

Xiaohan:

It is global race to the bottom, at the end of the day, the most efficent miners matters.  That bottom is really stable

Q. How is Meter different and better than Crypto-backed stablecoins like 'DAI'? What major solutions are you bringing to DeFi in Meter & What exact problems do you want to solve in DeFi?

Xiaohan:

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 oracles provide wrong data, the entire financial system is subject to fail. This may be too much of a systematic risk.  Meter addresses these issues and also bring scaling and cross chain into the picture to create a good DeFI infrastructure

Q. As an investor and early adopter, I find it difficult to access/value a project in the short term and require longer periods of time to fully understand, recognise and value it. So, to help my understanding, can you tell me what plans are set in motion to add value to MTRG?

Mike: 

You are the type of investor we are looking for! Someone with a long-term vision who takes time to understand the fundamentals of what we are building. There are many things we are working on to accrue value to MTRG. In October, we will launch staking and on-chain auctions, where people can bid MTR for MTRG to take part in governance, validation, etc. And we will integrate with other public chains to bring MTR and MTRG to their chains for DeFi purposes. and of course, we will work to increase the acceptance of MTR for DeFi apps and everyday payments. Lots to do!

Q. Please share key performance indicators of the chain, such as the Number of blocks per second, time to completion of a transaction, transaction speed, cost per transaction, or something else? Can you compete with other payment networks?

Mike:

Transactions have near instant finality, and the network can process over 1000 TPS. Cost per transaction is currently at 0.0105 MTR.

Q. Why does Meter believes in separation of consensuses? Is there need for separating the currency creation and record keeping consensuses?

Xiaohan:

In the real world, the gold miners are never the same people as bankers and accountants.  Why should crypto?  When you mix the responsibilties, you introduce conflict of interests.  We realized that when we seperate the two consensus, we could have the benefites of both worlds and avoids the problems in each

Q. -The meter Whitepaper says that is an autonomous chain like ETH or BTC, so Considering that, How Meter manage the Chain congestion?

-I don't understand How you can keep a stable reference value WITHOUT collaterization, can you explain It in Easy words?

Mike:

1) Our state-of-the-art Hotstuff-based consensus is super fast, with near instant finality and over 1000 TPS. No congestion! 

2) our design makes it so that it costs about 10 kWh of electricity to mine MTR. We leverage miner's profit-seeking behavior to keep it stable. If the price of MTR goes up, miners will mine more. If the price goes down, miners will mine less, keeping the price relatively stable. For massive price shocks, we have a reserve mechanism. We give up strong pegging to USD for full decentralization.

Q. -How is the price of 10kWh of electricity calculated in meter to make its value constant? Where can we check it?

-How can the token be supported by electricity? Where is the value of each token backed up, is it?

Xiaohan:

It is benchmarked against mainstream BTC miners.  The energy effificy parameter starts and 52 and reduce to half of this value every 18 month.  We when have such fixed production cost coin. Miners will only create them when it economically makes sense.  Their profit chasing behavior will create a disciplined monetary policy on the supply side.  Our MTRG on chain auction contionously remove MTR from circulation which is the demand side.  At the end it will drive MTR to an equilibrium

Q. Security, scalability, and data privacy are three aspects that are very important at enterprize level, how METER foundation handle these issues?

Mike:

In Meter, in order to attack the system, you will have to pass the sybil resistance for both PoW and PoS.  Because transactions settle instantly in the system, it is more secure than Bitcoin or ETH which have transaction roll back issues in PoW system.

Our Hotstuff consensus allows for more than 1000 TPS. 

Regarding privacy, we have recently partnered with Suterusu to integrate their privacy tech. And there will be more privacy-focused partnerships to come!

Q. DeFi has three sectors: DEX, Synthetic asset, and Lending. Which exactly is your focus in METER? Do you have plans for others that you're not focused on yet?

Xiaohan:

Our initial focus is the infrastructure side.  For example reliable two way bridges better compatiblity with ETH ecosystem and etc.  Once we built out everything, we will likely start from the DEX and synthetic assets part on Meter DeFi applications

Q. What is the difference between MOTOR and MRTG?

Xiaohan:

MTR is the metasable coin, MTRG is the governace coin for staking, governance and also long term hodl

Q. I believe the $MTRG project is promising. However, what is not yet clear to me whether $MTRG has a clear communication and marketing strategy for the short and long term?

Mike:

We've been swamped with announcing many of our initiatives, like the ETH bridge, liquidity mining, and many more. And we hope we've been clear about communicating all of these projects, because it is a lot! We are now putting in place the systems to improve and spread the word about Meter. We know the potential of Meter to impact the global financial landscape, and we will communicate this so everyone can join us!

Q. Current total value locked in DeFi has exceeded $7B, with only 6 projects capturing 90% of Locked funds. How does Meter plan to capture some percentage of value locked in DeFi ? 

As a PoS/PoW hybrid, how does the Proof of Value consensus mechanism helps in high level security and better performance of Meter network?

Xiaohan:

Meter currently do not work on the application level yet.  We will once we complete all the infra built out Q1 next year.   In Meter, PoS maitains ledgers and accounts, with HotStuff consensus, we could run fast with instant finality.  PoW helps brining in the permissionless token distribution and link with the values in the physical world

Q. I am an ETHICAL HACKER, do you have plans for HACKATHON so as to check the security of your ecosytem periodically

The biggest barrier for DeFi is that of interoperability, providing cross chain interactions and multiple blockchains, how does METER  solve this problem

Xiaohan:

Yes, we will when we finish the tool chains and etc.  We use Meter’s consensus network for validating cross chain communciations since we are EVM compatible, existing ERC20 assets should easily be able to transfer back and forth between Meter and ETH

Q. What your plans in place for global expansion, are Meter focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships? Can you explain this?

Mike:

Right now we are focused on the DeFi space. We're building cross-chain compatibility with ETH, Elrond, and many more chains that focus on DeFi, and we will also work on lending, synthetic assets and more apps on our chain.

Q. Really why have two tokens with two different strings like MRT - eMRT and MRTG - eMRTG? because simply Meter is not completely part of the ERC20 chain and ready?

Really, the METER project could not guarantee the integral privacy that is needed in DeFi, for now with its association with SUTERUSU it has the integral levels of privacy to guarantee it in all transactions?

Xiaohan:

eMTR and eMTRG are ETH ERC20 wrapped Meter mainnet token MTR and MTRG.  Just like BTC and wBTC.  We don’t want to have privacy in the layer 1 money creation layer due to regulatory concerns.  It could be on a side chain or layer 2.  That is why we partner with projects like Suter

Q. Experts has warned of dangers of 'Smart Contract Risks' in DeFi protocols. What are Meter security measures? How often do you carry out security audits? ?

Xiaohan:

That is why we designed MTR and MTRG as native coin instead of ERC20 tokens.  There are too many systmatic risks to use ERC20 coin as the base layer money for a finacial system.  Our layer 1 code has been audited by slowmist recently

Q. Can I really get up to a return of around 326% annualized? That's really a lot, how many eMRTG tokens would I need to start this liquidity mining and start generating income? What other requirements do I have to follow?

Why do this AMA in this great GCryptochat community? What words would you really like to give us and how could we support the METER project? because if METER wins, we win.

Mike:

If you were really early to add liquidity to our Balancer pool, you could have received that annualized rate. It's probably too late for that high of a rate now, but it will still be very attractive! Here is information about the program with all details: https://www.meter.io/meter-liquidity-mining/

We love answering your questions and spreading the word about Meter! Like you said, if we win, you win too!

Xiaohan:

based on the current participation rate, the annualized return will be in the 1xx% range.  You don’t actually need to have eMTRG tokens.  On balancer, you could directly add USDC into the mining pool and start mining there

Q. $MTR is a stable coin, so for general stablecoins, especially $MTR, if the country's inflation rate is high or fluctuated violently due to the economic situation, how will it affect the operation of $MTR?

Mike:

This is one of the major benefits of $MTR. It is independent of any country's financial system, so it will maintain its value better than any centrally-managed fiat currency.

Xiaohan:

it is pegged to the global competitive rate of electricity and will not be impacted by individual countries

Q1. What makes Meter more environmentally friendly than any traditional Proof-of-Work cryptocurrency?

Q2. How do you aim to prevent censorship and attack, which is extremely hard to obtain in Proof-of-Stake?

Xiaohan:

Because of the new economic game design, the hash power in Meter only correlates to the need of new currencies in the system instead of the price.  We did an estimation to support US eonomy, the annual mining expense is similar to the combined budget to US mint and US engrave and print.  We designed the PoS consensus especially for censorship attacks.  We have hundreds of nodes randomly picked out of thousands of nodes for each epoch (1hr) and change block proposer for every block

Q. When it comes to stablecoins, USDT is the King. What are your plans to keep in step with USDT? How can you dethroned USDT from the top?

Mike:

Yes, USDT is the stablecoin leader right now, but we believe that it is fundamentally flawed by being managed by a central identity (who is not really trustworthy, in my personal opinion) and backed by fiat. MTR is fully decentralized and doesn't need collateral nor oracles, and can be created by anyone. USDT is none of all these things!

Q: I'm a white hat hacker in internet, do you think MET system is secure enough from hackers? Does your project have a program that rewards individual vulnerability detection of the system?

Xiaohan;

we welcome hacker to test our our testnet and have rewards for bug report.  The testnet has been running in the wild for the last 8 months https://github.com/meterio/warringstakes

Q. How Meter platform generates Liquidity in it's Platform? What if anyone want to Purchase Millions of MTR Stablecoin, then, How you generates liquidity for that?

Mike:

If the demand for MTR is that high, miners will dedicate a lot of their hash power to meeting that demand. Unlike other stablecoins, we can't just print more coins. We are scaling up our miner network in preparation for high demand like this!

Xiaohan:

MTR is created by Miners, if there is demand for MTR they could easily mine more with the existing BTC miners.  MTRG tokens also propels the demand for it

Q1. Meter uses PoW consensus, how can scalability and low fees be achieved with PoW? What features of PoS remain in Meter's consensus? 

Q2. Meter can be used for everyday payments, what is the process for a seller to accept payments with meter, and a buyer to pay with it? The most important  to work for payments is speed and scalability, meter achieves that?

Xiaohan:

Meter uses PoW for value consensus, use PoS for record keeping consensus.  That why we could be fast and scure but maintains the benefits for PoW

Q. What are your plans to educate and raise awareness and adoption among the community to make more people understand MTR Token and its technology?

Mike:

We are currently working on a lot of educational material for this. The meter network is extremely powerful and a bit complex, so we know that education will be important to our growth. More to come on this!

Q. Could you give me 3 key points to convince me and other angel investors invest in $MTR in long-term?

Xiaohan:

You need to invest in $MTRG for hodl.  It is technically and economically very carefully designed and you could build a traditional valuation mode for the value of MTRG based on discounted cash flow and net assets

Q. Can you briefly explain the important milestones that the #METER team intends to implement by the end of this year or will implement in the future, how they will help them succeed, and how will #METER MTO be in 2020 and beyond?

Mike:

By the end of the year, we will have launched staking and on-chain auctions, a new block explorer, enhanced compatibility with Ethereum, the eMTRG-to-MTRG direction of the bridge, mobile wallets, and more! So much to do, but we are super excited to bring you all of these projects.

Q. What is the main focus of METER in building a partnership with Chainlink what does this partnership bring to METER?

Xiaohan:

We will support chainlink data to securely and more frequently feed into DeFI apps running on Meter to help them secure the their financial assets and build better apps

Q. What are the requirements that we must meet to be a validator within the Meter ecosystem and what are the advantages of becoming one?

Mike:

You could delegate your tokens in the Meter wallet to stake. If you want to run your own validator (on the testnet right now), more info here: https://github.com/meterio/warringstakes/. We've also partnered with Ankr to provide one-click node launch, which should be available soon. 

The advantages are passive income and knowing that you're helping maintain and grow the Meter network!

Q. How difficult is it to connect traditional enterprises and integrate with Meter? How do you solve this problem?

Xiaohan:

Meter’s consensus design making it great for enterprise blockchain as well.  We could easily create different sidechains for different enterprises

Q. what is MTRG ? Where does "MTRG" name comes from? What it's stand for?

Xiaohan:

MTRG = Meter Governance

Q. DeFi is one of the hottest topic in the blockchain space right now. Can you share your opinion about DeFi with us? Do you think that DeFi will disrupt the existing financial system? What is METER approach towards the DeFi sector?

Mike:

We've been building our DeFi infrastructure since 2018, way before it became a super hot topic. We absolutely believe that it will disrupt the existing financial system, and it already has to a small extent. There are so many DeFi projects popping up, so please do make sure to do your own research. We believe that Meter will be the best foundation for DeFi projects in the future.

Q1. Meter uses PoW consensus, how can scalability and low fees be achieved with PoW? What features of PoS remain in Meter's consensus? 

Q2. Meter can be used for everyday payments, what is the process for a seller to accept payments with meter, and a buyer to pay with it? The most important  to work for payments is speed and scalability, meter achieves that?

Xiaohan:

current transaction fee on Meter is 0.0105 MTR, since MTR is a metastable coin, it will not impact users long term cost.  Meter support multiple chains, and each chain supports 1500 tps

Q. How do you plan to spread awareness about your project in different countries where English is not spoken well? Do you have local communities for the them to let them better understand about your project?

Mike:

We do! We have Telegram communities in Vietnam, Korea, Phillipines, Turkey, Indonesia, China, India, Africa, and Russia!

Q1. Do you have plans to extend the MTR to others Networks? Like USDT with its ERC-20, TRC-20 and OMNI versions?

Q2) Considering that you are trying to implement a new "Fiat model" you must have permissions from Governments, so in legal terms How much committed is Meter ?

Xiaohan:

yes, we have already announced partnership with Erlrond, and issued ERC20 on ETH, more will come.  MTR is created permissionlessly.  Everyone can be a central bank but noone can cheat.  It is not paper money like “fiat” it is like virtual elastic gold

Q. What motivated you not to relate the value of your stablecoin to the dollar? Is there any reason for this decision?

Mike:

Stablecoins that are hard-pegged to USD have faults, namely centralization, regulatory, and collateral issues. We believe that decentralization and independence from collateral and oracles problems is more important than the hard peg. Though via our design, the price of MTR will be quite stable over the long-term around the $1 USD value.

Q. Meter is a single layer chain, most designs currently have 2 or more layers to increase security, how can Meter be as secure as its competitors with a single layers, and how is this design an advantage?

Xiaohan:

Meter support multiple chains, not just single layer chain.  It is more like ETH running on Cosmos

Q. Meter has two tokens: MTR and MTRG. Can you explain the different use cases and the utility of these two tokens? @xiaohanzhu

Xiaohan:

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 .

Q. With over 320 percent for Liqiudity Providers, don't you think it can have adverse effect on Tokenomics and Price

Explain more about your Token Bridge, what requirement I need to swap from MTRG to EMTRG, is it both forward and backward swap?

Mike:

The 320% return was only for very early liquidity providers to our balancer pool. That rate is likely in the 100s % now, since we have more than $1M in that pool. The rewards were very carefully designed, so we don't see a negative impact on our tokenomics. 

You can swap MTRG to eMTRG via the Meter wallet right now, but not the other way around yet. That direction will come around Jan 2021. You will have to pay fees (0.5% of volume, or 10 MTRG, whichever is more), and there is a limit of total MTRG that can be swapped (currently about 100K in capacity left).

Q. What advantages will #METER offer to hybrid markets trading decentralized and traditional financial products?

MTR also functions as a LAYER 2 SIDE CHAIN, what's the advantage of SIDE CHAINS & how does it solve the problem of interoperability prevalent in crypto and blockchain today?

Xiaohan:

high performance without sacrificing decentralization.  Layer 2 allows us to interact with other public chain easily

Q. What are the main real-world utilities and uses of $MTR tokens?  As an investor, why should you invest in $MTR Coins?  What are the benefits of having $MTR in your portfolio?

Mike:

For hodl and investing, $MTRG is the token that can increase more in price. But you could hodl  $MTR if you want to avoid the high volatility of other crypto in turbulent times. And we see MTR eventually being an everyday medium of exchange, so it will have that utility as well.

Q. Why did you decide to launch a Meter-Ethereum bridge and not in another network, taking into account the difficulties that ETH has (delay in transactions and high gas)

Mike:

ETH has the largest DeFi ecosystem, and this bridge was the basis of our liquidity mining program. And yes, the congestion is a problem, but something that we expected. We are looking forward to building our ETH DeFi capabilities as well as those for other chains as well.

Q. Why does Meter coin focus on the POW consensus mechanism?

Xiaohan:

PoW is for value consensus only as it is the only link betweent the physical world and the crypto world.  PoS does record keeping

Q. Truly, you've done AMA in many telegram groups, so what next, what other way will you make Meter more popular?

Mike:

We have a lot in the works here. There will be lots more engagement on our social networks (which are growing quickly), there will be more educational content, and we'll work with influencers and key opinion leaders to help the community understand everything that we're building.

Q. Which area does #METER focus on at the moment? (DeFi, Dapps,..) and which products/projects are you developing to support it????

Xiaohan:

DeFi apps.  We optimized the entire stack for DeFI

Q. How will Meter solve the scaling problem? And how does it overcome the threat of centralization?

Xiaohan:

We uses the state of art HotStuff consensus, which allows us to have hundreds of validators randomly picked out from thousands of validator candidates

Q. Why price of The Governance Token MTRG is so different from stable state? That is it no need?

Xiaohan:

MTRG is a speculative coin for hodl.  MTR is metastable.  The equilibrium is around 0.65 to 1.2

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