MetisDAO is a protocol launched in 2021. As such, many people have an interest in learning about this cryptocurrency.

MetisDAO is an Ethereum scaling solution which is referred to as a Layer 2 solution. MetisDAO relies on Ethereum for security. As such, MetisDAO does not do any transaction validation like Ethereum. It only packages up transactions and submits them to Ethereum via a node called a Sequencer. MetisDAO is the name of the cryptocurrency native to the Metis blockchain network. MetisDAO is also EVM equivalent, meaning that it has access to the full machine state of Ethereum. All information on Ethereum is accessible to MetisDAO and its ecosystem.

Having a background in cryptocurrency since early 2017, CryptoAtlas has created the perfect content about MetisDAO. We will get into the absolute details behind MetisDAO, including its technology, founders, transaction fees, and much more!

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What is The Difference Between Metis Andromeda Network and MetisDAO?

The Metis Andromeda Network is an Ethereum scaling solution. It is a Layer 2 blockchain protocol with the cryptocurrency name Metis. MetisDAO is also the name of the decentralized autonomous organization (DAO) that maintains and develops the Metis Andromeda network. Metis Andromeda has its ecosystem of DApps, it also has a web3 economy.

The Metis Andromeda blockchain has substantially lower transaction fees, faster transaction speeds, and better scalability than Ethereum. Developers can take advantage of all of these traits.

MetisDAO is also commonly referred to as the cryptocurrency in the Metis Andromeda Network as seen in CMC.

The Technology of MetisDAO

Is Metis Andromeda a Layer 2 Solution?

The Metis Andromeda network is a Layer 2 chain. More specifically, it is an Ethereum Optimistic roll-up protocol. It is built on top of the Ethereum network.

The Metis Andromeda network improves the scalability and efficiency of Ethereum. A Layer 2 chain like Metis Andromeda, reports only the final states of transactions to Ethereum as “calldata”, thus improving the scalability of Ethereum. Layer 2 Optimistic protocols like Metis do not compute transactions.

Furthermore, Layer 2 protocols combine off-chain transactions and report them to Ethereum as a single transaction, which reduces gas fees and network congestion. Layer 2 protocols inherit the great security of the Ethereum network. One of the advantages of Layer 2 protocols is that they require less transaction fees.

People are able to send transactions 10 or more times less expensive than in Ethereum. Since these transactions are more affordable, there are more use cases that can be adopted in Metis Andromeda.

Ethereum Layer 2 protocols make use of roll-up solutions. Transactions are grouped together as one transaction and submitted to Ethereum. For roll-up solutions, there are two main categories of roll-ups - Optimistic and Zero - Knowledge.

In Short, Optimistic solutions assume that the transactions are all valid and not fraudulent, hence why their name is Optimistic. Zero-knowledge roll-up solutions use Zero–Knowledge proofs to validate transactions outside of the Ethereum blockchain. Once they are validated, they are submitted to Ethereum.

Is Metis Andromeda EVM-compatible?

Metis Andromeda Network is EVM-compatible. This is because it is an Ethereum Layer 2 solution, Metis inherits all of the rules, RPCs, and environmental standards of Ethereum.

People are able to execute smart contracts and transactions in MetisDAO, the same way they would in Ethereum. Essentially, people are able to interact with the Metis Andromeda Network in the same way they would with Ethereum.

Ethereum Virtual Machine (EVM) is a term used to illustrate a set of rules that Ethereum follows, which other chains can adopt to behave in a similar way that Ethereum would. For example, EVM supports the Solidity Smart contracts language that developers use to deploy decentralized applications.

EVM is a machine state that has a unique smart contract execution engine and acts as a machine that changes dynamically as the chain adds more blocks. The way this machine changes is predefined by a set of rules set by the EVM.

There are many chains that have EVM compatibility. A popular one, for example, is Binance Smart Chain. EVM compatibility, allows blockchain networks to be able to be connected indirectly.

People are able to bridge assets from one network to another, with ease and in an inexpensive way. There are many cross-chain bridges built by various cryptocurrency companies.

What Chain is MetisDAO on?

MetisDAO has its own blockchain. The Metis Team calls it the Metis Andromeda blockchain. The Metis Andromeda Network is a blockchain built on top of Ethereum. Ethereum is essentially the base layer, whereas Metis is the second layer. Metis doesn’t exactly have an ordinary consensus mechanism like Ethereum and Bitcoin (PoW/PoS).

Instead, the Metis Blockchain bundles up transactions and reports them to Ethereum as a single bundled-up transaction. In a way, it is still in an experimental phase since Metis is still a newer project.

The Metis blockchain produces about 20 blocks per minute. Metis is also able to handle about 2000 Transactions per Second (TPS). The number of transaction throughput can be scaled up as the network continues to be used more often.

What is the Sequencer in MetisDAO?

A sequencer is a special type of node that bundles up transactions and submits them on both the Metis blockchain and the Ethereum network. A sequencer on Metis aggregates all of the transactions that many users submit and reports them to the CanonicalTransactionChain Smart contract on Ethereum.

There can only be one Sequencer at a time in MetisDAO. Making it MetisDAO in a centralized way. We will explain this later in the passage.

The MetisDAO sequencer explanation can be seen in the next image.

The sequencer on Metis produces blocks on the Metis Andromeda blockchain. The transactions on these blocks are verified by proofs that are done on Ethereum by way of the StateCommitmentChain smart contract.

MetisDAO is decentralized to an extent currently. This is because the Sequencer that runs MetisDAO is controlled by a central authority. That central authority can potentially censor users from submitting transactions.

However, MetisDAO is decentralized because users don’t need to use the sequencer to submit transactions. They can either use Ethereum(Ethereum is decentralized) or they can submit transactions straight to the CanonicalTransactionChain Smart contract. This can be shown in the image below.

What is MetisDAO used for?

Metis can be used for many reasons. People need to have Metis in order to perform some functions within the Metis network. Metis is used to perform the functions that are listed below.

Related: DACs VS. DAOs

The Team and Capital Raises of MetisDAO

MetisDAO, the team behind the Metis Andromeda network has 3 Cofounders. These are Elena Sinelnikova, Kevin Liu, and Yuan Su. The team also has 23 other members, which is composed of software engineers, community managers, marketers, and several other professional contributors.

MetisDAO raised 5 Million US dollars between March and May 2021. The ICO price of the coin was 5$ whereby 1 Million coins were sold. The project is a young project reaching valuations of more than 300$ per coin in January 2022. They also raised a one hundred Million dollar ecosystem growth fund in November 2021.

Metis Tokenomics

The Demand for Metis Coins

MetisDAO is used for gas when executing transactions in the Metis Ecosystem. Furthermore, it is used to provide liquidity to various decentralized exchanges. About 10 MetisDAO are required for the launching of DACs or Decentralized Autonomous Companies. 200 Metis are required to launch a network Sequencer node. This node can then allow users to receive rewards for keeping the network secure and up to date.

Metis Initial Coin Distribution

At the start of the Metis project, many coins were minted at the Genesis block to support various functions of the project. Coins were sold to private investors, and to public investors via IDOs (Initial DEX Offering). The total initial coin distribution can be seen below.

Metis Supply Release Schedule

Metis Coins get released as time goes by. Both because they are locked and because people receive rewards for keeping the network safe and secured. Advisors, seed and angel investors, and other institutions vest coins. These coins get unlocked and the supply increases at different time intervals. The next picture illustrates this phenomenon. Most of the coins in circulation end up being distributed through rewards for maintaining the network.

Using the Metis Andromeda Network comes with fees, either to deploy a contract, send Metis and tokens, or minting NFTs. The possibilities of using the Metis Andromeda network are endless. But one thing is certain. To use the Andromeda Network, you have to pay gas fees. We analyzed many transactions that took place for each action and calculated the average range of fees for each. This can help you better plan out your cryptocurrency transactions.

The standard fee to send Metis coins is about 0.0003447 METIS. This can range higher or lower if the user wants the transaction to be slower or faster depending on what they set the gas price to. Moreover, here is a chart illustrating the Metis Andromeda transaction fees.