Metis Dao Research Report: Exploring Decentralized Sequencers, Layer2 with Hybrid Rollups Solution

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What is MetisDAO?

MetisDAO is an open framework built on a layer 2 protocol for creating, managing, and growing a decentralized self-organizing company (DAC). It differentiates DAOs from DACs, describing DACs as a subclass of DAOs. DAOs are primarily concerned with governance issues, while DACs are specifically designed to address the day-to-day operations and management of projects.

MetisDAO’s goal is to build sustainable, decentralized companies on a high-performance underlying blockchain. It provides an open framework that allows anyone to publish on-chain DAOs or DACs and run and manage their own communities, applications, and enterprises.

MetisDAO’s services are not limited to the DAO level, but also have a standard module in place to measure everyone in the DAO, including wallets, RPs (Reputation Points), various attributes, and a basic Optimistic Governance mechanism. When two people want to collaborate, Metis helps them build a sense of connection and trust with each other and perform specific tasks.

In Metis’ vision, they hope that all Web2 applications (such as e-commerce, social networking, search) and various communities can quickly build DApps (decentralized applications) including DeFi and NFTs on chains such as ETH, use blockchain-based tools to manage the collaboration between communities and data computing layers, and establish an efficient distributed autonomous company (DAC), making it easier and more efficient to build DApps and manage communities on the blockchain.

What problem does Metis solve?

Metis solves ETH Place’s persistent blockchain trilemma by making it possible to implement all 3 desirable attributes of blockchain:

• Decentralization *Security
• Scalability

The sharp increase in demand for ETH workshops has led to a spike in transaction prices while the speed of transactions has lagged. As a ETH Smart L2, Metis has increased transaction speed (faster spin-off completion) and throughput (more transactions per second).

Most importantly, Metis is creating accessible, affordable, adaptable solutions so that anyone can build, run, and grow any application, business, and community using blockchain technology.

Metis vs. other popular Layer2

Financing Information

According to the MetisDAO funding situation, the project has received an investment of $800 million from FDV (Fully Diluted Valuation). The total funding amount is $500W from Ralf P. Gerteis, P1X Capital, Waterdrip Capital, DFG, Chain Capital, AC Capital, Block.power, Combinator, Hotbit, SSSnodes, Crasolum, Kernel Ventures, CatcherVC, Jubi Labs, etc.

Team Background

Elena Sinelnikova, CEO and co-founder of MetisDAO, is a finalist for Canada’s Best Women in Fintech and Blockchain awards. Elena has a technical background, having over 20 years of experience as a Microsoft Solutions Architect in the Canadian government and law enforcement. She began learning about blockchain in 2015 and co-founded CryptoChicks, a women’s organization dedicated to blockchain education, with her friend Natalia Ameline in 2017. Prior to becoming a co-founder of MetisDAO, she worked with Kevin Liu and Yuan Su to develop the Token Economic Institute, the predecessor of the Metis protocol, and has a long history of working together.

Kevin Liu: One of the co-founders of MetisDAO, with over 5 years of experience in product development, focusing on researching DAOs, governance, and decentralized collaboration. Prior to joining Metis, Kevin Liu co-founded Token Economy Labs Inc. in 2018, where he was responsible for building communities in Canada and the United States. Served as Vice President of Strategic Development (November 2011 to September 2015) and Vice President (September 2015 to June 2018) at StarsChina Technology Ltd.

Yuan Su: One of the co-founders of MetisDAO, he serves as the CTO and head of the development team, responsible for building strong technical support and ensuring the stability and innovation of the technology.

Lya Glaentzlin: An attorney with more than 30 years of experience in business law, energy, securities, mergers and acquisitions, and is part of the Metis team.

Project Background

Macro aspect: ETH Workshop Ecosystem Development: While ETH Workshop allows developers to build and deploy smart contracts and decentralized applications (DApps), ETH Workshop’s Layer 1 network has some limitations, such as high transaction fees, low throughput, and scalability issues. As a result, there is a need to build cheaper, faster, and more scalable solutions on ETH.

Project itself: MetisDAO is a Layer2-based DAO protocol designed to leverage the current DAO infrastructure while opening access to a full suite of governance and community tools to drive the Web 3.0 revolution. First launched in 2018, MetisDAO is highly scalable and has a unique architecture that makes it stand out among DAO platforms.

Layer 2 Technology: MetisDAO uses Layer 2 technology, a Layer 2 solution built on ETH Square’s blockchain. By leveraging Layer 2 technology, MetisDAO is able to deliver higher transaction throughput, lower transaction fees, and faster confirmation times, improving the scalability and performance of the entire system.

DAO Protocol: MetisDAO is a project based on the DAO protocol, which allows users to participate in the governance and decision-making process of the project. Through the DAO protocol, MetisDAO provides a decentralized form of organization that enables participants to jointly manage and run projects.

Openness and Accessibility: MetisDAO is committed to opening up access to the full suite of governance and community tools, enabling anyone to participate in and contribute to the project. This openness and accessibility provides a broader scope for the development and innovation of the project.

How does Metis work?

The way Metis works is a complement to the ETH blockchain. As a Layer 2 solution, Metis’ core function is to package Layer 2 transactions and transfer them to the Layer 1 network, thereby alleviating the burden on ETH blockchain. This approach is designed to speed up transaction processing and solve the problem of high gas fees in ETH.

At the implementation level, Metis has adopted its innovative “Hybrid Rollups” approach. This solution combines two mainstream blockchain scaling technologies: Optimistic Rollup (OP Rollup) and Zero-Knowledge Proofs Rollup (ZKPs Rollup).

OP Rollup’s way of speeding up processing is by assuming that all transactions are valid in the first place. This assumption allows transactions to be confirmed more quickly, increasing the overall throughput of the network. In Metis’ Hybrid Rollup architecture, this efficiency is retained, allowing the system to process a large number of transactions quickly.

ZKPs Rollup uses zero-knowledge proofs to verify the validity of transactions. This approach reduces the amount of information that can be tampered with, increasing security and user privacy.

Metis’ Hybrid Rollup effectively reduces the risk of fraud and erroneous transactions by combining OP Rollups and ZKPs. OP Rollup leverages its fraud proof mechanism to handle potentially dishonest transactions, while ZKPs provide a more secure verification method that ensures that only valid transactions are confirmed.

As a result, Metis’ Hybrid Rollup solution is both efficient and secure when processing a large number of transactions, significantly reducing the withdrawal time for users from 7 days to just 4 hours. In addition, the scalability of the entire system is unlimited, and any EVM-compatible DApp can be seamlessly integrated into Metis.

In order to be the first fully decentralized Layer 2 infrastructure on ETH, Metis introduced a PoS-based sequencer pool solution. The sequencer is responsible for sorting, organizing, packaging, and submitting transactions to the Layer 1 network in the Layer 2 network. In Metis’ model, transaction processing speed and network fault tolerance are improved by building a pool of multiple sequencers.

Initially, Metis’ sequencer nodes were created by filtered users and were accompanied by a staking mechanism. Users can become new sequencer nodes by staking METIS tokens, while other participants in the network can supervise these nodes, increasing transparency and trust in the entire system.

Metis also offers staking rewards to members who participate in sequencer nodes, with additional METIS rewards in addition to regular gas earnings. This mechanism encourages more members to participate, which not only reinforces the concept of decentralization, but also enhances the robustness and scalability of the network. In addition, node staking helps reduce the circulating supply of METIS, which may have a positive impact on the long-term value of the token. With the continued input and participation of community members, Metis has created an environment that both rewards members’ contributions and promotes the health of the ecosystem as a whole.

The current cooperative ecology

As many as 81 ecosystems and applications have reached cooperation with Metis Dao, including Bridge, CEX, DEFI, Gamefi and other tracks, and are still expanding. The main ways of cooperation are: deployment of Metis, CVP approval, and other cooperation.

Economic model

MetisDAO’s economic model is based on the operation and governance mechanism of its Decentralized Autonomous Organization (DAO) platform. Here are some important things to know about the MetisDAO economic model:

• Multi-tier solution stack: One of MetisDAO’s strategic priorities is to build a multi-tier solution stack for the Web3 economy. The stack includes ETH mainnet as a cornerstone, providing security, decentralization, and finality. Metis Smart L2 is an execution layer that is equivalent to the ETH Virtual Machine (EVM) with fast transaction speed and low cost. However, there is still a gap between the infrastructure layer and the application layer. To support all applications and the Web3 economy as a whole, MetisDAO is working to expand the functionality and extensibility of Smart L2 to strengthen the infrastructure of the Web3 economy as a whole.
• Eco-nodes: MetisDAO sees eco-nodes as contributors to the entire Metis ecosystem and serves as the infrastructure for the foundation to grow and develop. In the past year, the MetisDAO Foundation has actively cooperated with some ecosystem contributors and supported them in the trial operation of ecological nodes. These ecosystem nodes include Smart L2, Matrix Reputation Power, DAC Framework, and P1X.
• DAC Framework: MetisDAO’s economic model also involves the use of the DAC (Decentralized Self-Organizing Company) framework. Metis describes DACs as a subclass of DAOs that focus on solving the day-to-day operational and management problems of a project. The DAC framework aims to build sustainable, decentralized companies on a high-performance underlying blockchain. With the DAC framework, anyone can publish an on-chain DAO or DAC and run and manage their own communities, applications, and enterprises.

Overall, MetisDAO’s economic model aims to support the development of the Web3 economy by building a multi-layer solution stack and developing ecological nodes. At the same time, through the DAC framework, MetisDAO provides a way to create, manage, and grow decentralized self-organizing companies.

Token allocation

Metis’ native token is METIS with a total supply of 10 million.

The holding address is 18316,METIS Issued in May 2021, investors, consultants, founding teams and other shares have been unlocked, and 52% of the tokens are stored in Metis’ mainnet.

Metis Roadmap

Metis Project Summary

At present, Metis’ data is horizontally compared with other competing products on the same track, which belongs to the leading position, and through large-scale cooperation and access to multiple tracks, it ensures that users can see Metis’ presence in various ecosystems, helping more projects to enter the process and start.

The current currency price is 23.97U, and in the continuous development of the past two years, the number of Holders and the price of tokens have gradually increased with the expansion of the ecosystem, with a market value of about 100 million. Hot topics include Zero Knowledge Proofs, Scaling, Layer 2, Rollups, and more.

Advantages of Metis Token (METIS) include:

• Powerful Layer 2 Infrastructure: Metis not only provides reduced gas fees and increased transaction efficiency, but also focuses on the scalability and ease of building features on Layer 2.
• Decentralized Corporation (DAC) Architecture: Metis integrates DAC architecture into its Layer 2 infrastructure, making it easy for developers, project owners, and community leaders to build applications and communities.
• Ease of use: Using pre-set tools, templates, and interfaces, Metis simplifies application development and collaboration management, allowing projects and communities to enjoy the benefits of the ETH ecosystem while avoiding cost and efficiency bottlenecks.
• Scalability and performance: Metis emphasizes high scalability and supports multiple virtual machines and microservice frameworks to provide high-performance, low-cost development and use experience.
• Decentralization: Compared with centralized sidechains, Metis provides a fully decentralized solution, and all business activities are carried out on the sidechain, ensuring a high degree of privacy.
• Security: Metis has a high level of security, a high level of privacy in business activities, and is only visible to participants.
• Support a wide range of use cases: From NFT platforms, decentralized social platforms, to gaming communities, and more, Metis’ Layer2 infrastructure supports a wide range of applications.

Combining the advantages of Web3.0, Layer 2, and DAO, Metis heralds an important role in the future of blockchain technology and applications. As the demand for ETH expansion continues to grow, Layer 2 technologies and projects such as Metis will be more valued. The emergence of Metis is not only a new milestone in the Layer 2 field, but also its unique technical architecture and organizational structure have attracted the attention of a large number of developers and users, and has become a key infrastructure to promote the development of the Web3 economy.