Announcing MetaCoin—The Governance-Minimized Decentralized Stablecoin

Applications
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META Inflation Rewards

Incentivizing Uniswap pool liquidity is a high priority (especially considering the reliance), but using inflation to this extent initially as the method to achieve this will likely have pretty brutal effects on the META price – Using SNX as the example, there’s still yet to be any SNX unlocked from the incentivization pool - this starts in March, note SNX price was $0.05 at that point last year, it’s now $1, my guess is there’s a large number of people who didn’t expect SNX to appreciate so much when they first locked their SNX - As this SNX is unlocked there’s going to be a continuous stream of SNX likely pointed towards the market.

Another thing worth noting here is that SNX recently announced the smoothing of their inflation schedule - Imo a good call rather than cliffing the inflation.

My take would be rather than a 40,20,10 schedule, simplicity wins and there’s just some consistent inflation given to liquidity providers, or perhaps just a less steep cliff – Mainly just to not flood the market with liquidity provider tokens. Assuming some vesting/holding of Blood & Sweat META holders, the majority of tokens entering the market would be from inflation @ 40% in the first year.

Liquidity Incentives

  • Splitting fees between META holders and COIN/ETH liquidity providers instead of all fees going to META holders

    • Splitting the 10% spread between DSR & stability fee across the META burn and liquidity provider reward might just end up being such a small piece of the pie it may not be worth. One solution to this would be low inflation goes to liquidity providers & burning META with all fees – At some point of scale, it makes sense that fees scale better than inflation, eventually with 100,000 liquidity providers the inflation is hardly necessary, while the fee still is burning a large value of META.

  • Adding inflation to META and directing it to COIN/ETH liquidity providers

    • Agree inflation is a useful tool – There’s also been a shitload of token projects introduce huge inflation with no real point.
      • Imo a low inflation, going directly to liquidity providers makes the most sense - (META is being burned consistently through the fee, META is being rewarded constantly for providing liquidity).

Voting Rights

Multi-weighted governance is fucking interesting – I wonder when looking @ the already low asf MKR voter turnout – If these other groups (COIN minters/holders/liqduity provdiers) would actually increase this – I guess with MetaCoin, votes are only really about pushing a Happy ending, so more voters = more chance of a instant happy ending ococuring.

Happy Ending

Would it be possible to push ETH rather than redeem? Would make the ending happier lel.

Initial META Distribution

This is as interesting as fuck. Basically, building a new, functional airdrop - Using ETH bled for a distribution needs a whole article written about it – InterDAO airdrops incoming.
Mechanics around Metacoin setup spending & Blood/Sweat distribution is interesting too.

To confirm how the bleed mechanics work (breaking down what I think you mean with “This favors those who have bled the most, instead of basing the distribution on current shares which could have been recently purchased.”)
If I joined MetaCartel DAO with 10 ETH at 1:1 ETH:SHARE and the ETH:SHARE value is now 0.77 – I’ve lost 2.3 ETH, meaning I’m up x% META distribution.

If I had joined Metacartel last week with 10 ETH, when the share value was at 0.77 in the time to now, the share value hasn’t changed, I’ve lost no ETH, I get no META distribution?

Overall, 11/10, MetaCoin Incoming :call_me_hand:

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