We held an AMA with the Vietnam Blockchain Community, one of the country's most influential crypto groups, on Friday. It was a spirited session with lots of interesting and insightful questions!

See below for all of the questions asked by the community and answers provided by our CEO Xiaohan Zhu.

AMA Questions

Q. What are the solutions for $MTR once the extreme volatility hits in crypto market how do you protect your investors?

$MTR is the currency token in Meter.  It is like a mining credit, miners have to burn 10kwh with their BTC mining hardware to create 1 $MTR.  Miner will only create the coin when it economically makes sense to them.  Their profit chasing behavior will create a disciplined monetary policy in the system.  We also have a mechanism that will continously remove $MTR from circulation.  Therefore even the coin price drops, there will be no production, but continous consumption of $MTR and bring it back to balance

Q. As Meter has been developing your project, how have you overcome adversities? And how has your meter coped with these problems?

I have to say it was two years of hardcore development.  We only raised 1.3M equity back in 2018.  However we delivered the first crypto native low volatility coin and the first HotStuff consensus based mainnet (Facebook Libra uses a variant of HotStuff as well).  The level of innovation and engineering exceed many high profile projects that raised tons of funding

Q. It is known that Chainlink is a general-purpose framework for building decentralized oracle networks. So what are the advantages of Meter when working with Chainlink? Will Chainlink help you in adoption?

We just annonced Chainlink partnership yesterday.  Unlike DAI and other stable coins, the base layer currency in Meter doesn’t rely on oracles and smart contract.  Money is not an application.   As the building block of the financial system has to be layer 1.  We give $MTR the layer 1 security.  However the target for Meter is to power future DeFi systems.  Oracle is an important compontent for DeFi.  That is why we partner with chainlink to provide high quality data on chain.  Because we share 60% of our validators with chainlink and compatible with EVM.  This makes the integration pretty straight forward

Q. Why did Team use 2 types of tokens: MTR and MTRG for the project. What role does it play in the METER ecosystem?

Because the goal for a good currency is stable in purchasing power, while a good investment needs to appreciate.  It is impossbile to satisfy both at the same time.  In addition, the two tokens represents two different consenuses in the system.  The record keeping consensus and the economic consensus.  All existing crypto currencies mixed them up.  We use PoS for the first and PoW for the latter and combine the benefits of both world.

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 oracles provide wrong data, the entire financial system is subject to fail. This may be too much of a systematic risk.

Meter is designed to avoid such systematic risks. It gives up strong pegging to USD, but could maintain an 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.

Meter is a new social economic experiment that we would like to invite everyone here to watch and to participate, similar to when BTC was launched.

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

$MTR is the currency in Meter system. It is mined via PoW, stable in value, and you use it to pay for the fees, gas and storage in the system.  $MTRG is the governance token, you use it to approve transactions and earn block rewards.  Finally you could use $MTR to compete for the newly created $MTRG in the system

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

Why have you chosen HYBRID CONSENSUS and why do you choose POW and PoS CONSENSUS

We call our consensus mechanism Proof of Value (PoV), and it clearly separates the 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. This approach combines the benefits of both worlds. PoW will be less energy-consuming due to the economic game design; transactions can be processed really fast with instant finality. Also some of the PoS problems like long-range attack and rich-gets-richer problems can be avoided as well. Details could be found in our blog post. https://www.meter.io/what-is-proof-of-value-consensus/

Q. "Meter is secure, stable, programmable money for your DeFi app", so what are the problems that DeFi apps are facing? How is Meter able to maintain stable value?

A lot of the current DeFi applications are skyscrappers built on sand.  The fundamental building blocks of the system is not reliable.  DAI has not use oracles and has capacity limitations.  Now the trend is to use USDC and USDT.  All these are centralized solutions.  Once the system gets bigger, regulators will for sure come in.  Meter is trying to create an infrastructure for the decentralized economy that releave the application developers from regulatory concerns.

Q. What is the reason why Meter users should trust their meter? What competent features does it have unlike other projects?

All $MTR are created with real cost around 10kwh in SHA256 mining.  Noone could cheat.  The team did not any advantage in premining $MTR as well.  All $MTR are created equal.  We opened mining to the public from day1.  That is why you could trust $MTR

Q. Does Meter have plans for buyback and lock-up of tokens and community tasks/activities to raise awareness and bring mass adoption?

We have MTRG tokens reserved for that type of activities and could do things like liquidity minings and etc

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

Because we are fully compatible with EVM.  Many ETH applications can be easily ported to Meter.  It is open to all the developers.  Our team will focus more on DEX and Synthetic assets initially

for money to be Smart, it must be instant, zero fee transactions and private. Does Meter meets these 3 pain points and what the UTILITY and real life use case and application of meter tokens

at launch $MTR is programmable, very low transaction fee.  Privacy layers can be added to the system and we are working on that

1. The meter Whitepaper says that is an autonomous chain like ETH or BTC, so Considering that, How you handle the Chain congestion?

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

We use state of art HotStuff consensus which allows us to process thousands of transactions per second on a single chain.  $MTR doesn’t require collaterals because each $MTR has to use real cost to be created just like gold.  You can not cheat on that.  At the end of the day the value of $MTR quickly be agreed on the production cost of the coin

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 ?

yes, we will build bridges to ETH soon.  $MTR is not fiat, fiat is a piece of paper with a issuer, the issuer deices the value.  $MTR is the NEW GOLD.  Everyone is the central bank but no one could cheat

Q3: Why did the project choose a hybrid consensus mechanism (POV) between POW and POS rather than a separate consensus mechanism POW or POS, BFT ...? What are its advantages?

Q4: MTR token valuation is based on electric mining and POW. So, is it stable when electricity prices tend to rise and electricity prices vary from country to country?

first question has been answered already.  second question: it is a global race to the bottom, only the most efficient electricity cost matters.  It is surprisingly stable and evenly distributed around the world

Electricity rate/value is different globally in different countries, why then do you peg METER token to electricity? How will you calculate the correct value of the token?

In addition to the answer for the previous question.  THere is also opporutnity cost for the miners because we are using SHA256.  It only makes sense for the miners if $MTR has a little higher gross margin than mining BTC.  Their profit chasing behavior will create a disciplined monetary policy

Q. What are the risks associated with decentralized financial products (DeFi) related to risks? What does Meterdo to limit those risks?

by first elimiate the oracle and smart contract risk at the bottom layer

The COVID-19 pandemic has crippled world financial markets. Many investors have turned to investing in the blockchain market. What plans does Meter have in place to attract users, partners, and improve the quality of its projects?

Lots of annoucement and partnership will come in the coming days and month

Why do you have dual tokens of MTR and MTRG, Why do you need GOVERNANCE token and what's the utility and the difference and similarities BETWEEN MTR and MTRG

MTRG is the governance token in the Meter system.  Just like Maker has MKR and DAI they serve different functions.  MTRG’s value will be measured by MTR when we turn on the economic model in 2 to 3 month

Q1: Do you have mechanisms like buyback and incineration to regulate Meter supply and demand in order to increase its intrinsic cash value?

Q2: Q: Why did Meter choose to sell IEO on Gate exchange but not other exchanges such as Binance, Huobi ... Is there any strategic cooperation between METER and Gate.io?

We are discussing with many top global exchanges, please keep tuned

Is your aim, to become the number one (leader) in the DeFi Infrastructure platform and if so what will you say is your biggest strength to achieve it?

We have the first and only crypto native currency in the world.  Our infrasturue has ETH2’s performance and scalability and compatbile with ETH1.  It is also available today

Currently, users can participate in the "Community Sale" program to buy MTRG tokens, so does it affect users' decision to join IEO? As an investor, which one should I choose best?

If you read the rule of the IEO, it is going to be very compeititve.  Based on previous IEOs, you may have to commit $2k worth of GT to get $200 worth of allocation in MTRG.  Community sale is for people who wants to participate and grow with the network rather than immediate pop trade

As being permissionless, doesn't this imply that any one can do anything on meter and pose serious security threats, sybil attacks etc

 How secure are you and how robust are you to handle 21st century payments needs in DeFi

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

What problems did you face when trying to implement your product in working businesses ? Is it hard to explain to usual non-crypto people what is Meter and what are the advantages of using it ?

Non-crypto people doesn’t have to understand the mechanism of meter, but just meter is a curreny linked to electricity.  As we grow bigger, it is going to behave like Yuan or Euro to USD in terms of stability.  We could push it in social groups like developing countries, micro lending and ETC.  $MTR is money made by EVERYONE and for EVERYONE

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

When we function as a side chain.  The main host chain doesn’t have to care about what is going on in the Meter system and it can be easily integrated into ETH and other public chains

As far as I know, you have organized many AMAs before with lots of rewards for the community. Through AMA, what do you get from the community?

We want to get the words out and invite everyone to participate in this new social economic experiment

Many blockchain projects are on paper only and no product or product has no practical meaning. Please let us know what is the actual product meaning currently used by Meter? What are your plans for the product to be better in the future?

We have launched mainnet already.  Open staking will start in 2 to 3 months, fully support DeFi development around the end of the year.

DApp and Defi are two issues that are of great interest in the blockchain market. How does Meter approach these 2 issues? In the near future, Meter will focus on strong development?

We don’t want to compete for general purpose dApps.  We design and continously optimize Meter for decentralized financial applications.  They may not be the same as the current DeFi dApps and the market will tell us.

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