Decentralized and Self-Sustainable: Metis Gears Up for a More Exciting Second Half in 2024

Positioning itself as an efficient scaling solution, Metis works as a permissionless Ethereum Layer 2 network to host and empower next-gen decentralized applications.

With at least 220K followers on its official X handle, Metis has garnered more than significant traction in its working span. It has facilitated close to 18 million transactions with a TVL of more than US$410 million, onboarding as many as 885K wallets and counting.

Here, we will look into the achievements of Metis in 2024 and what they plan on doing for the rest of the year.

H1 2024: Towards a Secure and Optimal Decentralization

During the first half of the year, Metis steadfastly pursued its course toward decentralization.

It committed 250,000 tokens to grants in 2024, of which it has already disbursed 36,174 to projects such as Hercules, WAGMI, and DeFi Kingdoms.

The Metis ecosystem now comprises many major components of a decentralized community, catering to DeFi infrastructure, bridges, games, and more.

Decentralized Sequencer Implementation

However, the most vital H1 2024 implementation for Metis was its transition to a fully Decentralized Sequencer. The approval of 6 independent sequencer node operators and 2 more liquid staking token (LST) protocols to the Metis ecosystem will make it more decentralized and secure once they are fully integrated. Simultaneously, it will expand the opportunity for more users to participate in sequencer mining and qualify for a revenue share.

Metis was cautiously efficient in its decentralized sequencer upgrade workflow. First, it deployed the initial sequencer nodes to ensure a smooth transition and not disrupt the network stability during onboarding. According to the latest data, since March 14th, the initial nodes have locked up a staggering 322K METIS, with over 10,000 METIS already awarded to participants.

In the next stage, the Metis community approved six independent sequencer node providers to expand the security of the Decentralized Sequencer through the process of proposals and votes on the Metis Governance Forum. These six were OKX, Hashkey, A41, SNZ, Nodies, and B-Harvest.

In addition, it onboarded two more liquid staking token protocols, Stake.Link and Velix, which could potentially pair with an agreeing sequencer node operator to distribute sequencer mining rewards to users. And in the second half of the year, Metis will work towards accelerating decentralization, self-sustainability, and growth.

The Newly Introduced Withdrawal Feature

Most recently, Metis introduced the withdrawal feature of the Decentralized Sequencer on mainnet. It is set to become a mechanism useful for all sorts of stakeholders, including users and sequencer node operators.

Users who deposit METIS tokens via LSTs or different staking mechanisms may withdraw at any time, provided they are operating within the respective LST protocol’s rule set. A sequencer node operator is eligible for a full withdrawal of all locked METIS tokens, effectively exiting their node operation. They also have the ability to partially withdraw their tokens up to the 20k METIS token staking threshold if they want to remain an eligible sequencer node. These withdrawals are heavily secured as they are executed via Layer 1 (L1) smart contracts that rely on Ethereum’s robust security infrastructure.

Partial withdrawals can be performed once per cycle, typically lasting between 3-5 days. In full withdrawal, the Sequencer Owners initiate a node exit transaction and after a 21-day waiting period can claim all locked METIS.

Altogether, the feature comes with the benefits of incentivized participation and optimized capital efficiency. In Sequencer Mining, users earn Mining Rewards at the rate of 20% while supporting the Metis ecosystem’s growth and security. Moreover, the inclusion of LST protocols creates an opportunity where, instead of locking up their tokens, users receive Liquid Staking Tokens as a flexible and liquid alternative for their contribution to the network.

H2 2024: More Decentralization, Self-Sustainability, and Growth

In an effort to become more decentralized in 2024, Metis will create a system where no single entity controls the flow of transaction data on its network while distributing ownership of the network to sequencer node operators. This shift will make sequencer node operators more central to the platform’s functioning by playing a pivotal role in ecosystem governance, determining strategic goals, and driving network growth.

Aligning Vision and Goals

Additionally, METIS token utility will grow as more opportunities for distributing it through revenue sharing increase. This can attract more participants to the network, which may increase transaction volume. As volume increases, the gas fee revenue will also rise, resulting in higher earnings for sequencer nodes and users that participate in sequencer mining.

Moreover, Metis will create greater alignment of vision and goals between users and sequencer node operators as they have a direct stake in the network. This will not only result in a more reliable and responsive network that innovates and improves faster but will also encourage better performance and improved security since operators are incentivized.

Supporting Ecosystem Growth and Partnerships

To drive growth and make the network more self-sustainable in the second half of the year, Metis will continue to utilize its Ecosystem Development Fund (EDF) to provide critical funding and support to a wide range of projects and initiatives that encourage higher activity on the network.

Furthermore, the sequencer node operators—selected by the community—will own a critical component of the Metis infrastructure. Additionally, the Builder Mining Rewards will incentivize scale by rewarding valuable dApp efforts.

To further incubate innovation, Metis has partnered with P1X, its sister company and a leading Web3 incubator in the AIPAC region. This collaboration will focus on identifying and nurturing high-potential projects in thriving areas such as memecoins and real-world asset (RWA) tokenization.

Looking ahead to the second half of 2024, several key developments are set to enhance Metis’s performance:

• Network Performance: Metis has recently emerged as a network that delivers high performance with low gas fees due to a recent upgrade.
• Sequencer Flexibility: Sequencer node operators will benefit from enhanced flexibility through the network’s newly introduced sequencer mining withdrawal functionality, allowing partial or full withdrawal of their locked assets.
• Scalability and Efficiency: Preparation for integration with EigenDA aims to supercharge the network’s scalability and efficiency.

Overall, Metis is cultivating an ecosystem where user participation is incentivized, and ownership of the network among contributors is as tangible as possible.