Meter (MTRG)

What is Meter

The goal of the protocol of Meter is to complete the mission of Bitcoin and create a stateless financial infrastructure to enable the development of the cryptocurrency economy. It is a fully decentralised, permissionless public chain and Meter is the stable cryptocurrency on the chain that provides a relatively stable currency reference to values from the physical world. Meter uses the cost of production and the miners’ arbitraging behaviour in a proof-of-work system as the key feedback to establish a long-term equilibrium price for the market. Such equilibrium price essentially anchors the unit of accounting in the Meter system to the global competition of electricity prices, which is more stable in real value than any fiat currencies in the world based on the historical data.

Meter eliminates the burden on dApps developers to dynamically price their goods or services based on off-chain exchange prices, which is not only difficult to implement properly, but also extremely confusing to customers. The protocol of Meter aims to lay the foundation for a stable cryptocurrency reference that will pave the way for more sophisticated financial services and instruments like lending, insurance, options and derivatives to be built correctly.

Meter is not pegged to the U.S. dollar or any other fiat currency issued by a sovereign country. Instead, it is built on top of its own economy and its proof-of-work interactions with the physical world.

Meter is not competing with Ethereum or other public blockchains, though it is compatible with existing Ethereum dApps and can function as a side chain to most public chains. Developers can interact with and use Meter as a reference for their dApps’ native public chains through Meter’s cross-chain adaptors and SDKs. Each public chain runs its own consensus and scaling and implements its own incentive schemes while Meter focuses on proper monetary policy, inter-chain communications and settlements of value.

The Meter team introduced Meter, a proof-of-work-based stable cryptocurrency with its value fundamentally linked to values in the physical world. Proof-of-work is the fairest method for mining new cryptocurrencies and the most secure way to protect a fully decentralised, permissionless public blockchain.

The historical data of Bitcoin was reviewed to show that its value could be proxied from the marginal cost of production. Meter similarly uses energy consumption from the physical world as a unit of account to reliably proxy its market price. It provides a relatively stable unit of account for the cryptocurrency economy and reduces the extremely volatile exchange rates that dApp developers to date have had to face. The protocol of Meter further absorbs short term supply demand volatility by continuously removing MTR tokens from circulation through MTRG token auctions. Although a stable value is a necessary requirement for developers, they are free to leverage other public chains for performance, development environment, eco-system, and other considerations. Meter provides cross chain communication and value transfer mechanisms to help developers anchor their currency with the stable value in Meter across multiple public chains. Meter is a decentralised financial infrastructure for connecting values not only among different blockchains in the virtual world, but also with the physical world. People must be able to use cryptocurrencies to transact with the physical world’s good and services to build a larger thriving cryptocurrency economy.