Metis (METIS): A Multi-Faceted Layer-2 Solution

The Metis Layer-2 Solution Is About More Than Scalability

The Metis crypto protocol is part of a category of projects called Layer-2 scaling solutions that seek to enable the Ethereum blockchain to handle increased transaction volumes more securely, cheaply, and efficiently. The Ethereum blockchain processes around 13 or 14 transactions per second (TPS) and users pay fees to use the blockchain — whether sending a transaction to a friend or doing a higher-level operation like minting a non-fungible token (NFT). These fees vary according to the amount of computing power the operation requires, in addition to the number of stakeholders seeking to use the blockchain at the same time. 

Consequently, the Ethereum blockchain can become slower and more expensive to use during periods of high demand. Layer-2 solutions like Metis are designed to take pressure off of the Ethereum blockchain by bundling transactions together, sending them to a second-layer protocol for processing, and then sending them back to Ethereum for recording. This results in significantly faster transactions that cost less. However, the Metis Layer-2 solution is about more than just scalability — it seeks to create infrastructure for the Web3 economy as a whole. 

Features of the Metis Crypto Protocol

In addition to its Layer-2 scaling technology, Metis offers three core products: 

1. An NFT bridge and storage solution; 

2. A framework for decentralized autonomous companies (DACs); and 

3. Polis, a middleware platform. 

All of these solutions function atop Metis’ own blockchain framework called Andromeda, which Metis relies upon to leverage access to the Ethereum network.  

NFT bridge: Metis’ NFT bridge enables you to transfer NFTs between the Ethereum blockchain and Metis’ Andromeda network. This means that you can mint an NFT on Metis (likely saving money on minting fees), and later transfer it to Ethereum. Conversely, you can mint an NFT on Ethereum and send it to Metis. The Metis crypto protocol also offers NFT storage via an integration with the InterPlanetary File System (IPFS), a distributed file storage system. 

DACs: Additionally, Metis offers a technological framework for the DAC — the Metis-specific version of a decentralized autonomous organization (DAO). The Metis DAC framework is specifically designed to offer solutions for governance problems, organization management, and incentive alignment. Metis envisions decentralized autonomous companies as improving upon DAOs by leveraging reputation systems. 

Metis specifies that to join a DAC, members must hold the token of the DAC and stake some of those tokens in advance. This is intended to filter out potential members who might negatively impact the organization. Members establish their reputation through staking — the longer they stake their tokens, the better their reputation — and earn ‘reputation points’ accordingly. 

Polis: Metis also offers Polis, a middleware platform designed to help developers manage the smart contracts they have deployed on Metis. End users experience Polis as a web wallet which records transaction history. Eventually, Metis anticipates this transaction history could be turned into ‘reputation power’ that could benefit users collaborating within DACs. 

What Is Metis Token?

The Metis token (METIS) occupies several roles in the Metis crypto ecosystem. First, it is an important part of Metis’ Layer-2 solution. When Metis bundles transactions together and sends them to its Andromeda network for processing, it relies on actors called Rangers to ensure transactions are valid and not fraudulent. Rangers must stake (lock up) METIS tokens to be eligible to validate transactions. If they act maliciously, their stake will be ‘slashed’ (deducted as a penalty).

Additionally, METIS tokens can be used to pay transaction fees on the Metis Andromeda network and users can stake METIS tokens for rewards. Metis also operates a ‘Builder Mining’ program that offers member DACs METIS crypto rewards for each transaction they conduct on the Andromeda network.