Dialogue with Metis Head of Marketing: The Origin of Metis, MEME, and Vitalik's Mother's Vision

Author: Sunny, TechFlow

Metis: Jose Fabrega, Head of Marketing

"MEME, if used correctly, can become a valuable asset in the crypto industry." --- Jose Fabrega, Head of Marketing, Metis

When it comes to Metis, you might think of Vitalik's mom, or you might think of Memes, or you might vaguely remember its sudden surge at the end of 2023. Behind the surface of the market, the biggest highlight of Metis is its successful implementation of a decentralized sequencer. The sequencer is an important link that organizes and packages Layer 1 transaction computation and storage into Layer 2 through rollups. This link is responsible for off-chain execution and sorting and compressing transaction information. The results of the sorting directly affect the credibility of the data and the process of verifying and packaging data by related Rollup smart contracts.

To date, almost all rollup solutions on the market are centralized, while Metis is the first to adopt a sequencer pool approach to coordinate decentralized sequencers, ensuring the network's continued availability and resistance to censorship. The principles of Metis's decentralized sequencer have been discussed in detail in previous articles published by Deep Tide.

Metis's Jose Fabrega also has a unique analogy for explaining decentralized sequencers.

What is a Decentralized Sequencer?

"Let’s imagine the sequencer as a cinema's projection room. Picture yourself in a cinema watching a movie. You know that movies usually have a big projector, and the light or projection comes from a room at the back. This is the source of everything displayed on the blockchain. However, in this cinema scenario, the person operating the projector is essentially the one showing the movie and profiting from this activity. Only they are allowed to do this, giving them complete control over the content that appears on the screen and allowing them to keep all the money they earn.

Now, the key concept that Metis is developing is a system where everyone can bring their own 'movie' and showcase their work. To ensure safety and prevent inappropriate content, all submitted works are reviewed by validators. This can be likened to a movie showcase where not one person decides what everyone watches and profits alone, but many can contribute their movies, potentially earning fees or rewards. Moreover, since validators oversee the submitted works, this process is secure. Thus, essentially, this analogy encapsulates the decentralized and inclusive approach that Metis is striving to achieve."

With the arrival of the Ethereum Cancun upgrade, we have specially invited Jose Fabrega, the CMO of Metis, to share the competitive advantages Metis holds under this new round of upgrades and its position in the market.

Background Introduction

TechFlow: Can you briefly introduce your background and how you joined the Metis team?

Jose:

I was a chief broker in the banking industry. After working in banking for a few years, I ventured into cryptocurrency and co-created a crypto education community with colleagues. We developed it into a Latin American community with about 5,000 members. Then, I started creating content and initially shared it publicly on Twitter. Naturally, I began writing a series of articles about Metis. When Metis discovered these articles and saw that my description of Metis could help in its dissemination, we started to connect and collaborate, and now I am leading the marketing efforts for Metis.

Overview of Metis

TechFlow: Metis was founded by Vitalik's mom Natalia and her friend. Is there any untold story behind this?

Jose:

Elena and Natalia founded an organization called CryptoChicks (https://cryptochicks.ca/), which is an incubator for many projects in the cryptocurrency space. Interestingly, one of the projects they incubated was ETHLend, which later evolved into AAVE. They often give public talks to introduce their work. After attending a few of these talks, one of the founders, Kevin Liu, recognized their wisdom and invited his friend, an elite IBM developer Yuan Su, to one of the talks. Both Kevin and Yuan were impressed by Elena and Natalia's presentations and reached out to discuss their shared interests and insights in the cryptocurrency space. As their communication deepened, they ultimately decided to launch Metis. Elena and Natalia already had a vision for Metis before entering the cryptocurrency field. Although they may not have been entirely clear at first, their desire to realize L2 transformation drove them to establish Metis.

TechFlow: Metis is not a new project. Can you tell us about the history, core vision, and mission of Metis?

Jose:

Metis began in November 2021, initially as a fork of Optimism, using an optimistic roll-up technology. By May 2022, we implemented a significant transformation that sparked widespread discussions about data availability, particularly related to the Celestia project. Metis was the first to attempt a Layer 2 solution for data availability, thus becoming the most cost-effective and lowest transaction fee scaling solution on Ethereum.

Currently, we are in the phase of decentralizing the sequencer, which is a key development in the Layer 2 ecosystem. Unlike other Layer 2 solutions that use centralized sequencers, Metis is shifting towards a decentralized model. This transition allows a broader range of participants to engage in block production, reduces censorship risks, and introduces a revenue-sharing mechanism. For the first time, Ethereum's Layer 2 will allocate sequencer revenue to stakers, marking an important milestone.

TechFlow: Many users describe Metis as a more meme-oriented project within Layer 2. What do you think about this, is it good or bad?

Jose:

I wouldn’t categorize MEME as a primary narrative in the crypto community, but I do believe they play an important role in fostering a healthy ecosystem.

One of the core concepts of crypto is the sense of unity and fun among participants. MEME has become a popular means of communication, not only in the crypto space but also in broader culture. They have a unique ability to convey complex ideas in an accessible and engaging manner.

MEME can communicate messages in a concise and humorous way, whereas lengthy texts may require more time and cognitive effort to understand. When MEME is used responsibly, their positive contribution to the industry lies in building community and creating an environment where participants can enjoy together. Of course, as with any aspect of the industry, caution must be exercised to ensure that the use of MEME aligns with principles of integrity and safety.

Overall, when thoughtfully considered and with appropriate safeguards, MEME can become a valuable asset in the crypto industry.

Industry Challenges and Trends

TechFlow: What do you think is the biggest challenge currently facing the blockchain industry?

Jose:

First, accessibility remains a significant barrier for new users. While some top chains have integrated with traditional platforms like Binance, there is still a lack of clear pathways for users transitioning from traditional banking applications to crypto. This complexity hinders the industry's ability to attract and retain newcomers.

Second, interoperability between different networks is a challenge. For example, establishing asset bridges between Ethereum and other networks can be cumbersome, involving multiple steps and potential token conversions. This fragmentation diminishes user experience and highlights the need for smoother cross-network compatibility.

Third, regulatory uncertainty casts a shadow over the industry. While there have been some positive developments, such as the launch of Bitcoin ETFs, many aspects of crypto regulation remain unclear. This lack of clarity hampers widespread adoption and investment, as investors find it difficult to make decisions when uncertain about the regulatory status and safety of crypto assets.

Finally, misalignment of incentives within the industry often leads to speculation. While these strategies may yield short-term gains, they can ultimately undermine the long-term sustainability and credibility of projects. Aligning incentives with sustainable growth and value creation is crucial for the industry's long-term success.

TechFlow: How is Metis addressing the issue of incentive misalignment?

Jose:

Metis is a prime example of proactive planning. It has established a self-sustaining economic model, allocating nearly half of the total token supply to incentivize and promote ecosystem growth. This includes everything from dApps to security measures.

By providing ongoing incentives, Metis stimulates growth in TVL, transaction volume, and active user numbers. Additionally, the rewards generated from these transactions are returned to the ecosystem dApps in the form of builder incentives, with up to 4,000 METIS tokens allocated monthly based on transaction activity.

This strategy not only drives ecosystem growth but also ensures its sustainability. Moreover, as transaction volume increases, the revenue generated by the sequencer will also rise, creating a cycle of growth and reinvestment. Ultimately, this approach keeps incentives aligned and fosters a healthy ecosystem. While not without flaws, it demonstrates a clear plan for incentivizing users and promoting long-term sustainability.

TechFlow: What emerging trends or technologies do you think will have a significant impact on Metis or the entire blockchain industry?

Jose:

Regarding Metis, I believe the area with the most potential for significant growth in the industry may be the liquid staking sector.

Metis will provide the infrastructure users need to stake METIS tokens and earn rewards on Ethereum. Additionally, there will be substantial incentives for products focused on liquid staking derivatives (LSD). This includes lending platforms that allow users to borrow against their LSD holdings, as well as liquidity mining platforms where users can participate by providing liquidity with METIS-LSD tokens, among other possibilities. This LSD narrative is expected to garner considerable attention.

Furthermore, the social finance (social-fi) sector is anticipated to grow rapidly in the near future. Given its potential, this area may generate significant buzz.

In my view, the gaming sector will be the real game-changer. The gaming industry already has a massive market, with millions, if not billions, of players worldwide. These individuals are already online and closely connected to the crypto space. By launching engaging games on the blockchain, we can attract a large number of players into the field. The appeal lies not only in monetary incentives but also in enhancing the leisure experience by offering fun games on Metis. This direction has tremendous potential for success.

Overall, I foresee many areas emerging for Metis this year, each bringing exciting growth and innovation opportunities.

TechFlow: Regarding the Cancun upgrade, what competitive impacts do you think it will have on Layer 2?

Jose:

The integration of Layer 2 solutions with Ethereum is indeed an exciting development. By shifting data processing to Layer 2, it effectively alleviates congestion on Layer 1, thereby reducing transaction fees. This improvement not only enhances user experience but also makes Ethereum and Layer 2 solutions more accessible to a broader user base.

Essentially, it simplifies the process, making it more cost-effective and user-friendly, which is ultimately beneficial for mass adoption.

Marketing Strategy, Partnerships, and Ecosystem Development:

TechFlow: While other new chains attract users through airdrops, what unique marketing strategies does Metis employ to attract users?

Jose:

Initially, we started with liquidity mining incentives, a strategy adopted by many participants in the industry.

However, as we move towards decentralized sequencers, we are pioneering a groundbreaking initiative: becoming the first Layer 2 solution with a native token for liquid staking. This marks a significant transformation in the Ethereum Rollup upgrade space.

Users will soon have the opportunity to lock their Metis tokens as liquid staking assets in the network, which is a feature we are very excited about. In the first year, we will offer a competitive 20% mining reward, which is quite substantial in the crypto space. Additionally, we firmly believe in composability, ensuring that our dApps ecosystem is interconnected and robust.

We aim to cultivate a healthy ecosystem where protocols can interact seamlessly and complement each other, enriching the overall user experience. Furthermore, we have allocated 6% of the total METIS supply for airdrops, of which only 1.1% has been used so far, primarily to compensate the community after the Polynetwork hack. We have reserved 5% of the total supply for potential future airdrops, although there are currently no specific plans. However, we retain the flexibility to utilize this allocation as needed in the future.

User Growth and Engagement

TechFlow: User growth is a common concern for crypto projects. How does Metis attract and retain users?

Jose:

There are two key strategies for fostering community engagement and retention within the Metis ecosystem.

First, cultivating a sense of community involvement is crucial. Users need to feel like active participants in the development process, knowing that their opinions are valued and taken into account. This can be achieved through transparent communication channels, regular updates, and opportunities for community feedback and participation.

Second, incentives play a critical role in driving user engagement and retention. By strategically aligning incentives and providing rewards where appropriate, Metis can not only attract new users but also retain them in the long term. In this regard, supporting ecosystem builders is essential, as developers are the primary customers of blockchain networks. By providing support and resources for developers to create valuable and user-friendly applications on Metis, the platform can ensure a vibrant and active ecosystem that continually attracts and retains users.

In summary, active community engagement, strategic incentive alignment, and comprehensive support for developers are key factors in promoting participation and retention within the Metis ecosystem.

TechFlow: How does Metis choose and establish partnerships?

Jose:

In business development, we prioritize projects that align with our ecosystem needs and have a clear product-market fit. We look for robust business models and teams committed to long-term success. Our goal is to support projects that can bring positive value to the ecosystem and meet its needs.

TechFlow: What important partners or projects does Metis currently have?

Jose:

We have seen the launch of several strong ecosystem dApps, including the highly anticipated Hummus, Hermes, and Tethys. Hermes, in particular, achieved impressive TVL figures in 2022, reaching hundreds of millions. Tethys is our primary perpetual contract exchange, providing users with opportunities for leveraged trading. Additionally, we have other significant partnerships in the works, although details have yet to be announced.

Market and Competitive Analysis

TechFlow: How do you view the current competitive landscape of L2 in the cryptocurrency market?

Jose:

Competition is inevitable, but METIS is already prepared to become a top scaling solution for Ethereum. Our primary focus is on delivering sustained, incremental growth and providing maximum value to users, thereby driving progress in the industry.

In terms of what sets us apart, from a technical perspective, METIS is the only Ethereum Layer 2 solution that decentralizes its sequencer, allowing us to share revenue with the community—this is a unique feature. Additionally, we are adopting a decentralized governance process, ensuring that METIS becomes a community-owned network—a rare phenomenon in an industry where many Layer 2 solutions are centrally controlled.

Moreover, METIS is exploring zero-knowledge proof development organizations, combining the advantages of Optimism's Rollup upgrades and zero-knowledge Rollup upgrades. We plan to launch the first hybrid rolling upgrade by the end of 2024 or early 2025, offering the best features of both. These initiatives, along with our commitment to incentive alignment, will position us as a leader in the field.

TechFlow: How does Metis maintain its competitiveness in a fiercely competitive market?

Jose:

Our key performance indicators (KPIs) primarily focus on driving our internal success goals. One of our main objectives is to achieve a total locked value (TVL) of one billion dollars, not limited to METIS but also including bridged funds, stablecoins, and other assets. We expect to reach this milestone in the short to mid-term.

Additionally, we aim to significantly increase transaction volume by attracting high-quality applications and infrastructure projects. The growth of transaction volume not only benefits successful projects but also ensures the sustainability of METIS.

In terms of marketing, our goal is to significantly ramp up our efforts, potentially by tenfold, to expand our presence in overlooked regions, such as emerging crypto markets in Latin America and certain Asian countries. We aim to substantially grow our user base and enter new markets.

While we do not have specific targets for transaction and user numbers, our goal is to match or exceed our top competitors, such as Optimism and Arbitrum. Given our projects, strategic planning, and infrastructure, we are confident in achieving these goals. Ultimately, our success will be measured by our progress in transactions, TVL, and user acquisition, with an expected milestone of one billion dollars in TVL.