<not affiliated with the Metronome project. not financial or investment advice. this write up is simply my opinion>
Summary: Metronome (MTN) is an initiative to create a crypto currency designed to overcome shortcomings in well-known crypto currencies like Bitcoin, Bitcoin Cash, Zcash, etc. Metronome team’s overarching goal is to create a crypto currency that can function as a long term monetary system lasting 100+ years. Metronome plans to be the first crypto currency capable of being user exported / imported across various public blockchains. From the Metronome press release:
- Self-Governance: MTN tokens will be managed by its user community, with the system managed by autonomous smart contracts. There will be no third party with any special privileges either within the system or in the MTN marketplace.
- Reliability: Metronome was architected to provide rapid market price discovery, prioritize predictability and provide a steadiness to the MTN token supply over time.
- Portability: Metronome’s cross-blockchain capability uses a proof-of-exit receipt when users leave one blockchain, which enables them to enter another. The MTN token will be issued first on the Ethereum network, with Ethereum Classic, Rootstock on Bitcoin and Qtum support expected to follow. This will allow users to select the blockchain that suits their requirements for governance and security, or even upgrade the MTN contract if needed.
Token Status — Summary of initial token supply auction I pulled from the MTN FAQ and supply auction article: Initial token supply will be released via an autonomous descending price auction. The auction is scheduled for some time in February 2018 with a 10M initial token supply of which 80% is reserved for the public. The initial sale will last for 7 days or until it is sold out. The starting price in the Initial Supply Auction will be 2 ETH per MTN. As long as the auction is open and there are still MTN available for purchase, the price descends by 0.0001984320568 ETH every 60 seconds, toward its floor price of 0.0000033 ETH.
For ongoing token issuance, Metronome will mint 2,880~ tokens per day that will be distributed via a descending price auction.
Overview/Use cases: Metronome’s primary use case(s) is to be a new and improved crypto currency that has strong self-governance, fast transaction times and is portable across blockchains. It looks like the MTM team wants to put in place an automated governance model that prevents the type of ownership drama(s) that are ongoing in the Bitcoin environment.
Partnership Activity: The partners listed now on the Metronome site are entities that help with Legal, PR and token launch vs. partners that will help build out the Metronome ecosystem. Assumption is tech & business partners that help grow the ecosystem will be disclosed post token sale.
Coding Activity: Metronome has staffed a dev team (see Team section) but there is minimal coding activity detected in the Metronome Github. The lack of Metronome coding activity in Github does not concern me at this time because Bloc labs has a good reputation for launching legit projects and Metronome appears to have a dev team in place with a solid track record. Metronome’s timeline calls for “first cross chain launch on ETC” in Q1 2018 which implies coding has already started.
Team: Overall Metronome team appears to be well qualified and experienced with legitimate engineering and crypto reputations. Metronome is one of the initiatives of Bloc labs (a Xerox PARC-like initiative for blockchain tech) — the backing of Bloc labs implies that the Metronome project has the potential to build and maintain a strong technical/business team to drive Metronome’s roadmap.
Advisors/Investors: Well-known advisor team strong in the areas of technology, finance governance.
The Metronome team and the advisors appear to be solid crypto professionals with good technology track records. The descending price token auction is an interesting way to minimize surprises by providing public visibility into the token price, token issuance and the rate of token minting.
My primary concern with Metronome is around timing of some of the currency features. There are lots of examples in tech history of failed projects that had good team/vision/tech but the team launched a solution for a problem that the marketplace decided did not need to be solved at the time of the launch. For example, is Metronome solving a problem with cross block chain portability that doesn’t yet need to be solved given we are still early in mainstream crypto currency adoption?
The Metronome team plans to launch a currency that:
1. Lowers the incentives to engage in the types of governance wars that have plagued Bitcoin. Metronome’s autonomous smart contracts and models driving governance are designed to help with things like preventing founders from having an undue influence post launch doing things like manipulating token supply.
2. Prevents whale price manipulation. Declining price auction for tokens is designed to prevent whales from taking large positions during token presales/ICO and then manipulate the token later in pump and dump schemes.
3. Provides public access to initial and ongoing token auctions to encourage a wide range of token ownership/usage.
4. Prevents locking the MTM token (and its value) into a single blockchain ecosystem. Users can move the MTM tokens to be used on different blockchains as they see fit.
The declining price auction (DCA) is an interesting technique used to mitigate the influence of whale’s during token sales. The scary thing about the DCA for individuals is it is possible you could mistime your token purchase during the token sale and over pay for a token by buying early. Worst case example is you paid 2 ETH during first wave of buying and then the price decreases to a much lower value as the token’s price declines during the auction. You will have to be careful if you decide to participate in the initial token sale to determine what a reasonable price you will pay for a token as the price moves downward.
</not affiliated with the Metronome project. not financial or investment advice. this write up is simply my opinion>