Metis: Leading the way to decentralization

Article author: KevinLiu Article compilation: Block unicorn

The evolving blockchain In the technology world, the concept of decentralization has become a guiding principle, especially for Ethereum, where decentralization is a key differentiator and advantage compared to other blockchain ecosystems. However, the question remains since Ethereum took its first steps: How do we achieve decentralization?

As stated in this article, Vitalik proposed the milestones that Ethereum Rollup needs to reach to achieve full functionality and true decentralization . By going through these stages, Rollup will say goodbye to its initial development phase and satisfy the most challenging side of the blockchain trilemma.

Vitalik's proposal nicely outlines the "how": Rollup should become fully functional and technically decentralized. However, decentralization is not just about technology, it is a complex architecture that we need to build. So, “how” can Rollup achieve this elusive goal of decentralization?

As a co-founder of Metis and subsequently leading a project dedicated to building the infrastructure to enable hybrid Rollup technology (ZKM), it is precisely this "how" Keeping me awake at night, tossing and turning.

Stages of decentralization: strategic blueprint

< strong>The journey to comprehensive decentralization is divided into four stages:

Phase 0: Cold start - laying the foundation for decentralization Foundation Phase 0, the “cold start,” launches the blockchain project and focuses on building a strong infrastructure. Similar to the heavy construction phase, the core team plays a central role in development and management. Although community-wide participation is encouraged, taking control during this heavy construction phase can still be a challenge.

In the complexity of Phase 0, community participation is crucial. While the core team leads the heavy lifting, the project encourages community participation through activities such as voting and token delegation. The problem, however, is that these activities only operate within limited parameters, providing a semblance of decentralization.

To truly drive decentralization, strategic community engagement is crucial. In addition to token-based voting, it is equally important to foster true community ownership through transparent communication, education, and collaboration. Building a community that is truly invested in the success of a project lays the foundation for meaningful decentralization.

Stage 0 Brief Summary:

1. Goals: Lay the foundation for your business.

2. Focus: Establish a solid foundation for future development and decentralization efforts.

3. Method: Focus on improving efficiency and execution by building a team, while giving the community a sense of ownership of the project, even if it is not literal yet ownership.

Phase 1: Infrastructure Decentralization—Leveraging the Power of Utility Tokens

Utility tokens play a dual role in Phase 1. 1) In addition to being tools for transactions, they also become tools for cybersecurity and decentralization. 2) Real contributors use utility tokens for staking, mining, voting and governance, actively shaping the development trajectory of the project.

Empowering real contributors: a collaborative approach

Phase 1 heralds an era in which the construction and operation of infrastructure is no longer the exclusive domain of central authority. True contributors, actively contributing to network growth, receive tools and incentives for key processes. This democratization is in line with the principles of decentralization and fosters collective ownership.

Recognizing the importance of infrastructure decentralization is critical. As network infrastructure becomes more decentralized, it becomes more resilient, adaptable, and able to withstand challenges that may arise in the dynamic realm of blockchain technology.

By eliminating a single point of control, leveraging the power of utility tokens, and empowering real contributors, blockchain projects create a more powerful and participatory environment. Ecosystems lay the foundation. This evolution is not an isolated achievement, but a strategic stepping stone towards a decentralized future.

Brief summary of stage 1:

1. Objectives: Eliminate single points of control in technology.

2. Focus: Decentralize control and ownership of key components and use utility tokens to protect the network.

3. Method: Empower real contributors to participate in infrastructure construction and operation, and cultivate a more resilient and censorship-resistant network.

Phase 2: Revenue sharing - Aligning interests to achieve sustainable growth

Many blockchain projects and ecosystems face difficulties in dealing with the different goals between short-term token holders and long-term stakeholders, such as the core team and major contributors. Short-term token holders prioritize immediate price fluctuations and seek quick returns, while long-term stakeholders want to build a sustainable future.

Changing thinking: from airdrop mining to ecosystem participation

The key to resolving these conflicts lies in changing the way community members think. Beyond the tendency to join the ecosystem just for the sake of airdrop mining, participants must embrace a more active role and participate in the growth of the ecosystem. This shift means understanding that rewards are earned through active participation rather than passive speculation.

Metis: Decentralized Sequencers through revenue sharing

A vivid example of this transformative approach is Metis’ decision to decentralize its Sequencer. Metis has adopted a revenue sharing model with all node operators, creating a system that allows token holders to stake their assets to earn revenue and mining rewards. This approach establishes a direct relationship between community participation, staking to ensure network security, and the overall value of the Metis network.

Ecosystem growth and stakeholder benefits

The beauty of this model is its self-reinforcing nature. More active nodes and increased community participation lead to higher levels of staking, enhancing the security of the network. As the Metis ecosystem expands, attracting more dApps and builders, the overall value of the network grows. Therefore, both short-term and long-term stakeholders benefit from the prosperity of the ecosystem.

Interest in coordination: a prerequisite for sustainable development

Phase 2 focuses on coordinating the interests of all relevant parties in the ecosystem. By incentivizing active participation and contribution, rather than passive speculation, blockchain projects can foster a community truly committed to the long-term success of the network. The shift from short-term gains to a collective vision of sustainable growth ensures that the interests of all stakeholders are aligned, laying the foundation for sustainable development.

Revenue sharing is more than just a mechanism for distributing rewards; it is a force for change, reshaping community dynamics and aligning the interests of all parties. As Metis demonstrates, this approach sets the stage for a decentralized ecosystem where each participant is not just a beneficiary, but an active contributor to the collective success of the project.

A brief summary of Phase 2:

1. Goal: Align the interests of short-term token holders and long-term builders.

2. Focus on: Introducing a revenue sharing mechanism to encourage active community participation.

3. Method: Change community thinking from short-term gains to active participation in ecosystem growth, such as Metis’ model, where revenue sharing encourages collaboration and contribution.

Phase 3: Comprehensive Governance - Use two-tier governance to deal with complexity

The ultimate goal of the entire journey is to establish a comprehensive governance structure that coordinates the interests of the wider community, small token holders and key stakeholders. While voting rights based on the number of tokens may run the risk of being dominated by large holders, a more nuanced approach is needed. The solution lies in taking inspiration from modern political structures and creating a two-tier governance system that ensures inclusivity and balances the influence of various stakeholders.

Solving the problems of large households

The challenge at this stage is twofold of: Giving small token holders the ability to influence ecosystem decisions while preventing undue influence from large token holders. A traditional single-layer governance structure based solely on the number of tokens may inadvertently favor whales, obscuring the voices of smaller contributors and community members.

Metis’ two-tier governance model: Commons and Eco Nodes

Metis's two-tier governance model includes Commons and Eco Nodes. Commons is similar to a decentralized autonomous organization (DAO), where every community member can create, join, and form interest groups.

Commons work similarly to parliaments in most Western political structures. In Commons, small token holders pool their voting power and collectively stake it on the governance platform, thereby increasing their influence. This collective power gives smaller token holders a more substantial say in the decision-making process, balancing the influence of giant whales.

Commons as the first layer of governance: a democratic forum

In Commons, members can submit proposals, participate in debates, and jointly decide on matters that affect the ecosystem. This vibrant and inclusive space ensures that even small token holders can actively participate and contribute to the project’s governance. Proposals approved by the Commons then move to a second layer of governance.

Eco Nodes serve as the second layer: the guardian of long-term interests

Eco Nodes form the upper layer of governance; they are made up of core builders, contributors, and stakeholders who are deeply invested in the long-term success and growth of the ecosystem. Eco Nodes function similarly to the Senate in most Western political structures. Unlike Commons, Eco Nodes have a double responsibility - validating proposals and taking decisive action. Their voting power is not determined solely by the number of tokens; instead, it is finely tuned based on reputational power. Prestige power is earned through past contributions, creating a more elitist system.

Balance and ensure accountability

Two-tier governance The model maintains a delicate balance by allowing small token holders to collectively influence decisions while allowing Eco Nodes to act as gatekeepers, reviewing proposals for soundness and long-term viability. The system is designed to be flexible, allowing Commons to evolve into Eco Nodes when certain criteria are met, while Eco Nodes may be punished when malicious behavior occurs. This balanced approach ensures accountability and promotes a dynamic and responsive governance structure.

By leveraging collective influence in the Commons and incorporating the wisdom and experience of Eco Nodes, Metis aims to ensure fair and transparent representation of all stakeholders. This innovative governance structure demonstrates a commitment to true decentralization and community empowerment.

A brief summary of Phase 3:

1. Goal: Establish appropriate structures for different types of stakeholders.

2. Focus: Create a two-tier governance model that balances the influence of various stakeholders, including small token holders and key contributors.

3. Method: Establish a Commons layer for community participation and proposal approval, and an Eco Nodes layer for verification and decision-making to ensure a fair and responsible governance structure .

Summary:

The time has come, from the milestone The general expansion discussion turns to specific and unique steps on the path to decentralization. Optimistic Rollup is one of the first to decentralize its Sequencer and share the revenue. The other is a two-tier governance structure that aligns the interests of the blockchain project’s core team with those of the token holder community.

By following these steps, we can lead harmoniously with the seemingly conflicting goals of decentralization and growth. I can’t wait to see other blockchain projects come up with fresh ideas on their own journeys.