Summary:
- Metis is a layer-2 scaling solution for Ethereum launched in 2021, designed with the specific aim of building more robust, value-creating DAOs.
- Its vision is to evolve DAOs into DACs–fully functioning businesses that are able to run like existing companies, but decentralized. Instead of just governance and voting, DACs will be able to execute functions like payroll, project management, HR and communications.
- Through its use of Optimistic rollups as compared with other layer-2 solutions using zK rollups, Metis aims to achieve both greater scalability and decentralization.
Ethereum (ETH) was the first programmable blockchain, but it faced issues with skyrocketing gas fees and network congestion. Along came Ethereum layer-2 solutions, which aims to improve scalability and throughput by processing transactions off-chain.
One such layer-2 scaling solution that aims to solve those shortcomings is Metis, an Optimistic layer-2 scaling solution for Ethereum that is targeting the development of DAO communities.
The native token of Metis is the METIS token. The METIS price is currently $25 with a market cap of $105 million. The circulating supply is 4.5 million and the maximum supply is 10 million.
What Is Metis Crypto?
Metis is a layer-2 blockchain built for the Ethereum blockchain, with a focus on growing decentralized communities (DAOs). With blockchain technology came the promise of decentralization–DAO is the decentralized version of a company, an institution or organization without, say, a CEO, a Chairman or President. Through a DAO’s smart contract, all the rules of an organization or community are laid out, and all users can have a voice to vote or propose changes, which are all stored on the blockchain.
However, what Metis realized is that the current function of DAOs is limited. The DAO model can actually be used for much more than just governance voting, but building out this framework would require too much time and resources for a project to do. Metis thus set out to build a new framework, a Decentralized Autonomous Company (DAC).
What Does MetisDAO Do?
Metis takes the concept of DAO a step further. How can one manage resources, run open-source projects and incentivize members within a community better? Where the DAO enables users to participate in governance and voting, a DAC enables these, plus management, by incorporating aspects such as payroll, project management, communications, HR and more, just like a typical company. In this way, a DAC enables the development of a fully functioning business–without a CEO or boss running the ship.
Metis’ vision is that “employees will be able to ‘try-before-they-buy’ with prospective employers; employees will have a much greater voice in company decision-making; identity-based voting mechanisms will play a formal role in governance; and full-time, monogamous work at one company may well become the exception, not the rule.”
Projects can register as a DAC by using the native METIS crypto. The DAC registration process is similar to a real-life company. If a person wants to register a DAC, they have to undergo a registration procedure and stake METIS tokens. The fees for the registration are paid in the native token METIS coin. A stake value of at least 10 METIS ($250 at the time of writing) is required in order to create a new DAC.
As long as they meet the staking requirement, any organization in the world can register a DAC and engage with their community. The DAC structure is one of the highlights of the Metis ecosystem and part of the reason the token gained popularity over the last year.
What are the Key Metis Features?
The Metis DAO project brings a plethora of new features for the layer-2 ecosystem–NFTs, bridging, optimistic rollups, and more.
- Optimistic rollups
As a layer-2 solution, the Metis blockchain processes transactions off-chain, and then syncs them on the Ethereum mainnet in large batches. In this respect, it is similar to Abitrum and Optimism. However, the main difference between Metis and other layer-2 solutions is that it uses Optimistic rollups to process transactions instead of zK rollups.
Optimistic rollups are the latest generation of layer-2 scaling solutions, with several advantages over zK rollups. zK rollups require a higher degree of security because of the sequencing layers for validators–these layers are put in place to prevent fraudulent transactions on the blockchain, but they use a single sequencer which clogs up the network during heighted transaction volume, leading to similar issues as the original mainnet.
Still confused? Read more about zK Rollups vs. Optimistic Rollups
The “Rangers” on the Metis network are validators that help synchronize the staking algorithms and verify transactions. The consensus on the network assumes that all transactions are accurate unless proven otherwise.
As such, Optimistic rollups solve the throughput issue of Ethereum with a Proof-of-Stake (PoS) validator system and fast transaction speeds. The current block time is less than two seconds and transaction fees amount to a cent.
- Polis
Polis is the DAC middleware management program, which makes it easy for DApps to be transferred to Metis’ Layer 2. When fully built, it will allow developers to create their own DApps/ DACs without any blockchain coding or smart contract programming knowledge.
Besides developers, Polis will also enable users to connect with the DApps that are built on Polis. Additionally, it will have a wallet client for METIS coin staking. In the future, the wallet transaction history can be used as a reputation tool on the DAC structure which would allow users with a higher balance of a certain token or NFT to enjoy more voting power and higher visibility.
- Metis Virtual Machine (MVM)
The Metis Virtual Machine is Metis’ response to scaling bottlenecks of layer-2 solutions. Using the benefit of hindsight, they designed their Optimistic rollups in a way that the project can scale in the future while still retaining a connection to the Ethereum mainnet.
The MVM is an alternative to Ethereum’s Ethereum Virtual Machine (EVM) and provides the highest throughput of any Ethereum-based client.
- NFT Bridging
Some time ago, Metis invited NFT traders to their ecosystem by encouraging them to mint NFTs on their platform. As Metis is EVM-compatible, all existing Ethereum tooling such as MetaMask can be used to mint and transfer fees.
This connection to the Ethereum mainnet allows NFT traders/creators to develop and mint their NFT projects on Metis and then transfer them on the Ethereum mainnet for sale on marketplaces such as OpenSea. Metis also built a direct connectivity with the InterPlanetary File System (IPFS) to provide storage for NFTs minted on the network.
Bridge transfers work the other way around: Ethereum NFTs can be sent over to the Metis network and sold on Metis NFT marketplaces.
Metis DAO also released an NFT series for METIS stakers and airdropped the first version in 2022. A second version of their NFT is announced for the future and only METIS crypto stakers will be eligible for the airdrop.
METIS Coin Price Analysis
The METIS coin is the native token of the Metis ecosystem and its DAOs. Launched in August 2021, METIS operates as an ERC-20 token and can be staked on the platform for a yearly APY.
The Metis crypto coin has a circulating supply of 4,386,102 tokens. It is currently trading at $36.40, giving it a market cap of almost $160 million.
The Metis token provided excellent ROI for early investors in the last two years. Launching at a price of $40 in 2021, the token quickly skyrocketed to the $100 range in November, the same time Bitcoin made a new all-time high to $67,000.
With the start of “alt season,” Metis appreciated to an all-time high of $320. The token has declined significantly over the last few months due to the state of the overall crypto market.
Conclusion
Metis brings new unique features to the layer-2 scaling forefront. By analyzing competing layer-2 solutions and building its MVM from the ground up, it has developed a layer-2 with industry-leading scalability, processing nearly three million transactions since launch.
The bottom line is that Metis is among the most bullish scaling solutions for Ethereum, directly competing with the likes of Optimism and Arbitrum. The unique toolset and focus on community will likely propel the project forward–the Metis ecosystem is still in the early stages of development, but with its NFT minting perks and bridges, it is demonstrating a serious commitment to full integration with the main Ethereum chain.
