Tokenomics

Metastate Network will introduce a native token (tentatively referred to here as $MET for Metastate token) that underpins both the governance and utility aspects of the ecosystem. Inspired by the dual-role tokens of other blockchain networks (e.g. Optimism’s OP or Arbitrum’s ARB), $MET is designed to serve multiple key functions in the network’s economy:

Gas and Transaction Fees: $MET will serve as the primary gas token for transactions and smart contract execution on Metastate. Initially, during testing phases, the network may utilize ETH for gas (given the OP Stack defaults) but the plan is to enable custom gas tokens so that $MET can be used to pay transaction fees directly. This provides a native demand sink for the token, as all activity on the chain (payments, contract calls, deployments) will require $MET. Using $MET for gas also allows the network to introduce fee rebates or discounts for certain community actions in the future, as determined by governance.
Staking and Network Security: Validators (or sequencers) of the Metastate Network will be required to stake $MET tokens as part of the network’s security model. Staking serves two purposes: (1) it deters malicious behavior by ensuring validators have collateral at risk, and (2) it aligns incentives by rewarding validators with network fees and potential token rewards. In Metastate’s rollup design, a single sequencer (initially operated by the core team) will order transactions, but as the network decentralizes, we envision a proof-of-stake validator set emerging where multiple nodes stake $MET and take turns producing blocks or acting as the sequencer committee. Stakers will earn rewards from transaction fees and possibly inflationary issuance of $MET (if governance decides to introduce modest inflation to incentivize participants). This staking mechanism echoes the security approach of other L3 projects like Onyx, where the native token is used by holders to secure the network and earn rewards.
Governance Rights: Every $MET token holder will have the right to participate in on-chain governance (details in the next section). $MET essentially functions as a governance token, conferring voting power on proposals proportional to one’s holdings (with potential quadratic voting or other schemes subject to community discussion). This means that major decisions about protocol upgrades, parameter changes, treasury allocation, and ecosystem grants will be voted on by $MET holders through a transparent process. The token thus embeds voice in the future direction of Metastate - aligning the network’s evolution with the interests of its community of token holders. This is similar to how other networks empower their communities; for example, Optimism’s token facilitates governance of the Optimism Collective, and $XAI token holders govern the Xai network’s decisions. Metastate will likewise utilize $MET as the cornerstone of a community-driven governance system.
Utility and Ecosystem Currency: Beyond gas and governance, $MET will play a role as a general utility token within the Metastate ecosystem. It can be thought of as the inter-state currency connecting all the united communities and applications on the network. While individual communities may issue their own local tokens, $MET will be used for staking into system contracts, paying network service fees, and as a base pair for DEX markets or asset issuance. For example, if a community launches a new token for its members, they might stake some amount of $MET in a deployment contract for security or use $MET liquidity pools to establish its market value. Moreover, certain ecosystem services - such as identity verification, or access to the unified Metastate App’s premium features - might charge fees in $MET, which are then burned or sent to the community treasury (subject to governance). In essence, $MET will function as the bloodline of the Metastate economy, facilitating exchanges of value and access to services across all communities.
Incentives and Rewards: A portion of the $MET supply will be reserved to bootstrap the ecosystem and reward early adopters, developers, and contributors. Metastate plans to implement a points-based incentive program akin to those seen in other emerging networks (such as Sonic’s points system) to drive engagement. In this program, users earn Metastate Points for various helpful actions - for example, testing the network, reporting bugs, providing liquidity, creating content, onboarding new community members, or simply being active users of dApps on Metastate. These points will not be tradable, but will translate into rewards such as $MET token airdrops, badges/NFTs, or increased governance influence. Sonic’s multi-tiered approach (awarding points for both passive participation and active contributions) serves as a model; Metastate will similarly offer multiple avenues to earn points so as to encourage both everyday usage and significant development efforts. By the time the token generation event occurs, community members who have accrued points will receive $MET allocations proportional to their engagement - ensuring that the network’s most dedicated supporters become its stakeholders. This strategy not only decentralizes token ownership from day one, but also creates a vibrant early community committed to Metastate’s success. Collaborations with other protocols (for example, integrating an Optimism app on Metastate) may also be rewarded via this incentive program, fostering a rich ecosystem of applications.

Token Supply and Distribution: (To be finalized) The total supply of $MET and its distribution breakdown will be transparently detailed prior to mainnet launch. Our guiding principle is to achieve a fair launch with broad community ownership, while also securing sufficient funding for ongoing development and rewarding those who build and maintain the network. A possible high-level allocation could look like: a majority portion (e.g. 50%+) for community and ecosystem (airdrops, incentives, liquidity mining), a portion for core contributors and developers vested over several years, a portion for strategic partners/investors who accelerate network growth, and a reserve for network treasury to fund grants and future initiatives via on-chain governance. All token releases will be subject to vesting schedules to align long-term incentives. The exact numbers will be proposed and subject to community feedback before launch.

In summary, $MET is integral to Metastate’s design: it secures the network, governs its evolution, fuels transactions, and links the diverse communities in a shared economy. By holding and using $MET, participants literally own a piece of the network and have a stake in its prosperity. Tokenomics decisions will themselves be governed by the community, ensuring the economic model can evolve as needed to best serve Metastate’s human-centered mission.

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Last updated 11 days ago

Tokenomics

Gas and Transaction Fees: $MET will serve as the primary gas token for transactions and smart contract execution on Metastate. Initially, during testing phases, the network may utilize ETH for gas (given the OP Stack defaults) but the plan is to enable custom gas tokens so that $MET can be used to pay transaction fees directly. This provides a native demand sink for the token, as all activity on the chain (payments, contract calls, deployments) will require $MET. Using $MET for gas also allows the network to introduce fee rebates or discounts for certain community actions in the future, as determined by governance.
Staking and Network Security: Validators (or sequencers) of the Metastate Network will be required to stake $MET tokens as part of the network’s security model. Staking serves two purposes: (1) it deters malicious behavior by ensuring validators have collateral at risk, and (2) it aligns incentives by rewarding validators with network fees and potential token rewards. In Metastate’s rollup design, a single sequencer (initially operated by the core team) will order transactions, but as the network decentralizes, we envision a proof-of-stake validator set emerging where multiple nodes stake $MET and take turns producing blocks or acting as the sequencer committee. Stakers will earn rewards from transaction fees and possibly inflationary issuance of $MET (if governance decides to introduce modest inflation to incentivize participants). This staking mechanism echoes the security approach of other L3 projects like Onyx, where the native token is used by holders to secure the network and earn rewards.
Governance Rights: Every $MET token holder will have the right to participate in on-chain governance (details in the next section). $MET essentially functions as a governance token, conferring voting power on proposals proportional to one’s holdings (with potential quadratic voting or other schemes subject to community discussion). This means that major decisions about protocol upgrades, parameter changes, treasury allocation, and ecosystem grants will be voted on by $MET holders through a transparent process. The token thus embeds voice in the future direction of Metastate - aligning the network’s evolution with the interests of its community of token holders. This is similar to how other networks empower their communities; for example, Optimism’s token facilitates governance of the Optimism Collective, and $XAI token holders govern the Xai network’s decisions. Metastate will likewise utilize $MET as the cornerstone of a community-driven governance system.
Utility and Ecosystem Currency: Beyond gas and governance, $MET will play a role as a general utility token within the Metastate ecosystem. It can be thought of as the inter-state currency connecting all the united communities and applications on the network. While individual communities may issue their own local tokens, $MET will be used for staking into system contracts, paying network service fees, and as a base pair for DEX markets or asset issuance. For example, if a community launches a new token for its members, they might stake some amount of $MET in a deployment contract for security or use $MET liquidity pools to establish its market value. Moreover, certain ecosystem services - such as identity verification, or access to the unified Metastate App’s premium features - might charge fees in $MET, which are then burned or sent to the community treasury (subject to governance). In essence, $MET will function as the bloodline of the Metastate economy, facilitating exchanges of value and access to services across all communities.
Incentives and Rewards: A portion of the $MET supply will be reserved to bootstrap the ecosystem and reward early adopters, developers, and contributors. Metastate plans to implement a points-based incentive program akin to those seen in other emerging networks (such as Sonic’s points system) to drive engagement. In this program, users earn Metastate Points for various helpful actions - for example, testing the network, reporting bugs, providing liquidity, creating content, onboarding new community members, or simply being active users of dApps on Metastate. These points will not be tradable, but will translate into rewards such as $MET token airdrops, badges/NFTs, or increased governance influence. Sonic’s multi-tiered approach (awarding points for both passive participation and active contributions) serves as a model; Metastate will similarly offer multiple avenues to earn points so as to encourage both everyday usage and significant development efforts. By the time the token generation event occurs, community members who have accrued points will receive $MET allocations proportional to their engagement - ensuring that the network’s most dedicated supporters become its stakeholders. This strategy not only decentralizes token ownership from day one, but also creates a vibrant early community committed to Metastate’s success. Collaborations with other protocols (for example, integrating an Optimism app on Metastate) may also be rewarded via this incentive program, fostering a rich ecosystem of applications.

PreviousUse Cases NextGovernance

Last updated 11 days ago