MetaWhale Bitcoin (mwBTC) – Exposing Bitcoin’s Uncomfortable Truth
In January, DeFi Labs set a new standard in the cryptocurrency space when they released MetaWhale Gold, the Gold Standard for Crypto. Now DeFi Labs has created a protocol to take on something even bigger. Like big-game fishing!
That’s right. MetaWhale is going after Bitcoin.
In this iteration, the principle is the same as the previous MetaWhale. Unlike MetaWhale Gold, MetaWhale BTC’s reserve asset is Bitcoin. But MetaWhale BTC is doing much more than just locking up the bitcoin supply… it’s also destroying it.
Let’s find out about MetaWhale BTC and how it makes bitcoin more valuable.
What Is MetaWhale Bitcoin?
The core principles remain the same.
It’s driven by the same hyperinflation – hyperdeflation concept. The successive burning and minting of the coin insulates MetaWhale BTC against inflation and deflation in the long term.
MetaWhale BTC supporters are rewarded in the same way as MetaWhale Gold supporters. The only difference is Bitcoin securely backs MetaWhale BTC (mwBTC).
Oh, before we forget—mwBTC also burns half of its Bitcoin reserves to reduce the total Bitcoin supply. More on that later.
Who Is Behind MetaWhale Bitcoin?
You remember Dr Mantis, right? He and his team from DeFi Labs created PRIA and MetaWhale Gold. Together with BitByTheByte, the two have created a new paradigm in elastic-supply tokenomics.
How Does MetaWhale Bitcoin Work?
If you’ve already read through our MetaWhale Gold article, this is going to be a breeze for you. Again, it applies the same mechanics, but with different financial standards backing the token.
To help you understand tokenomics, let’s look at a scenario where there is an initial supply of 1 million mwBTC to be burned to 1 mwBTC. There was also a one-time mwBTC airdrop, which brought the total initial supply to around 1.5 million.
Just like with MWG, every MetaWhale BTC buy sends 1.25% of the total transaction value to the MetaWhale BTC reserves, burning the other 1.25%.
Selling burns 2.50% of the total transaction value and sends 3.75% of it to the MetaWhale BTC reserves.
Through the reserves, the protocol buys renBTC to establish a digital-asset backing for MetaWhale, giving it sustainability and stability. (RenVM is an open protocol that allows liquidity between blockchains, focusing mainly on bringing currencies such as BCH, ZEC, and BTC to Ethereum. MetaWhale BTC is a DeFi project that works specifically with ETH, hence the need for renBTC.)
Wallet transfers also add to the burns, with the sender burning 1.25% of the total transaction and the receiver sending 1.25% straight to the MWBTC reserves.
Transfers between wallets can only occur if the receiver of the MWBTC is also active and already has MWBTC in their wallet.
As in MetaWhale Gold, forced sells and inactivity burns exist to make sure no one hoards the asset, and to keep the wheels moving.
If at least 6% of the total address balance does not move within 35 days, participants in the system can make a forced sell on that wallet. This mechanism sends 1% of the token to the sell or burn caller, and sends the other 5% of the token to the holder’s wallet in the form of wETH (the token that represents Ether in accordance with the ERC20 token standard.)
At 4 months or 122 inactive days, if the wallet holder has not made any sells, other participants can initiate an inactivity burn, which sends 50% of the inactive wallet to a burn address and gives the other 50% to the caller of the function as a reward.
Different Side, Same Coin
This new and ambitious DeFi project takes its cue from both PRIA and MetaWhale Gold.
PRIA remains the basis of most of its internal mechanics and overall tokenomics. MetaWhale Gold is the project that proves this system is functional and defies how currencies work today.
MetaWhale BTC has accomplished two impressive things so far. It has managed to avoid tying itself to tangible fiat currency, and it is proving to be something bigger than a vague concept.
The self-renewable aspect of MetaWhale is one of the most exciting things about it. It corrects the imbalance of purely inflationary or deflationary systems, while also managing to generously reward its participants at the end of a given cycle.
Why Does MetaWhale BTC Burn Bitcoin?
MetaWhale BTC is deflationary. So, for every transaction, some of the mwBTC supply is burned, and some of it is used to buy BTC. One portion of the Bitcoin is stored in a reserve for holders who can claim their share once the mwBTC supply reaches 1. The other portion of Bitcoin is burned.
This is primarily done to accelerate the implosion of BTC. While mwBTC’s value is based on its reserves of tokenized Bitcoin, the protocol actively burns BTC to hasten its implosion.
So what are the benefits of burning Bitcoin? Those who hold Bitcoin might want it to appreciate more quickly, while others might want to make it implode faster.
It’s all part of a growing conversation around protocols that can manage inflation and deflation without imploding and protocols that prevent supply monopolization. With traditional deflationary tokens, anyone who buys in after the implosion stage can only lose money as the system collapses. However, with MetaWhale BTC, deflation occurs while the protocol fills its own reserve.
But How Does The Reserve Work?
There are two reserves at play here, one temporary and the other permanent.
The temporary reserve is guided by the community, as anyone who makes a call can manage it once it gets filled to a certain extent. These are the options available with the temporary reserve:
MetaWhale BTC Reserve Actions:
- If the temporary reserve holds 0.35% of the total mwBTC supply, a swap of 85% of the temporary mwBTC reserve balance is made to wETH.
- A reward amount is registered as 1% of the mwBTC temporary reserve before the swap (1% of 0.35%) and that amount is minted to the caller’s address as a reward. All manager functions in the next steps will use this incentive value (the 1% of 0.35%) as a reference. If the temporary reserve does not hold 0.35% of the minimum threshold, calling the function will have no impact.
- The remaining 15% of the temporary mwBTC reserve balance is added to the DEX liquidity pool (50% converted to wETH, 50% MWBTC). Again, the unique caller is rewarded with another minted incentive as computed on point 1.
- 47.5% of the wETH present on the temporary reserve is swapped for renBTC and sent to the MetaWhale BTC reserve, which is also the MetaWhale BTC contract. Afterwards, another 47.5% of wETH is swapped for renBTC and sent to a BTC burn address. Again, a reward is paid to the unique caller with a minted incentive triple the computed size on point 1.
- The remaining 5% of wETH is swapped for PRIA and sent to the MetaWhale BTC contract. Again, the unique caller is rewarded with another minted incentive as computed on point 1.
- If the PRIA reserve in the MetaWhale contract is greater than 1% of the total supply of PRIA, 20% of the PRIA reserve is sent to the PRIA airdrop address. If the amount of PRIA in the MetaWhale contract is less than 1% of the total supply of PRIA, the reserve manager resets and goes back to point 1, and it does not send funds to the airdrop address nor perform actions of points 6 to 8. The unique caller is rewarded with a minted incentive as computed on point 1 if the PRIA reserve is greater than 1% of the total supply. If the PRIA reserve is less than 1% of the total supply of PRIA, that reward is halved.
- 70% of the PRIA reserve is sent to PRIA SIE NFT holders. Again, the unique caller is rewarded with a minted incentive as computed on point 1.
- 5% of the PRIA reserve is sent to the marketing NFT holders. Again, the unique caller is rewarded with a minted incentive as computed on point 1.
- 5% of the PRIA reserve is sent to the Defi Labs NFT holders. Again, the unique caller is rewarded with a minted incentive as computed on point 1. At this point, the reserve actions revert back to checkpoint 1.
These nine actions drive the temporary reserve to be manipulated to the caller’s desire, ultimately giving them the power to decide on how the reserve is to be distributed to everyone involved.
There is a system in place that removes reward monopolization. The system checks the caller’s history to verify they have not done this same action the last 20 times the action was called.
Pros of MetaWhale BTC
- The most obvious pro is that MetaWhale Bitcoin is directly challenging Bitcoin when Bitcoin is most shaky.
- Bitcoin needs a reset. It’s common knowledge in crypto circles, and while experts aren’t shouting it from the rooftops, the crypto community knows it’s time, and that it has been time for a while.
- People are rooting for MetaWhale BTC’s code to work. If it works, everyone goes home happy. However, people also accept that it will take loads of patience and time to make the best out of this new system.
- There is a lot of thought and effort that’s gone into making MetaWhale BTC safe, secure and foolproof; and it is stable. Does that differ from other tokens and coins? You bet. It is backed by plenty of locked liquidity.
Even great projects have cons. The standout con here is IF, and only if, you forget your wallet. If you forget your wallet, and there is a forced sell or inactivity burn, you will lose. So be sure to login and reset your counters within every 35 days.
Reset your counters here.
How and Where Can I Join the Community?
You can reach out through the MetaWhale website. Alternatively, they have a buzzing social media presence. Twitter is a great place to trade thoughts and get some answers from the community. For the ones that appreciate a little more security and anonymity, you’re welcome to reach out on Telegram – [Official]
Recent News or Events
There’s excitement in the air about burning MWG to 1. There is also a similar buzz with mwBTC.
The buzz around mwBTC stems from the fact that it is a cheaper option. As more people recognize that it is vastly undervalued, the mwBTC supply will come nearer to the end of its cycle.
As volume increases, PRIA and PRIA NFT holders will receive an increasingly generous portion of the reserve. Of course, the rewards will be equal to the type of NFT held at that time.
Then there is the bonus of NFT airdrops for both MWG and mwBTC, which are currently in the making. These NFTs will contain augmented reality art, static digital art, and fully redeemable physical representations. They also contain coefficients and geographic coordinates, features that might be used in the future to generate yield or make them applicable in gaming applications.
It looks like good times are near.
We’re holding our collective breath for MetaWhale Bitcoin to replicate MetaWhale Gold’s success and rally so we can start marching into profits. But, we’re still keeping our eye on the bigger picture.
The MetaWhale project is trying to correct the hyperinflation and hyperdeflation handicap of many currencies.
Those who already took up MetaWhale Gold are about to win big. Still, people are excited about MetaWhale Bitcoin as a cheaper option. And, they see it as more accessible.
PRIA remains an excellent prospect due to how MetaWhale works. The rewards system baked into DeFi Labs’ NFTs continue to keep PRIA holders excited.
There is much hope for the success of MetaWhale. We are holding on to see how it will shape the crypto ecosystem and DeFi on a larger scale. We’d also like to see it improve cryptocurrency’s sustainability.
How sure are we that there’s no rug pull?
At the time of writing, there’s approx. $250k of locked liquidity that has been backing this project since the start, and it would be crazy dumb to try and trick people with that much money serving as the capital.
What will happen at 1 mwBTC?
Any participant can opt to click on “finish” at the MetaWhale Bitcoin dashboard so everyone holding mwBTC can redeem their percentage of shares from the reserve. After 35 days, there is a “Big Reset” that allows mwBTC to be minted again and for the cycle to start over.
What reserve asset does MetaWhale Bitcoin use?
It makes use of renBTC. renBTC is a coin capable of inter-blockchain liquidity. This is how Bitcoin is currently being utilized under the Ethereum-based DeFi system.
Is Bitcoin really being burned by mwBTC?
Hey, don’t take our word for it. See it for yourself. 🙂
Why do I keep getting Uniswap errors when I buy or sell mwBTC?
Always buy and sell in whole numbers. Alternatively, increase your slippage from default to at least 8%. The problem might be decimals aren’t pushing through.
But wouldn’t high slippage be a problem?
Well, no. See, the buy and sell tax isn’t profitable for front-running bots to sell quickly. Only quick sells would make high slippage a problem.
Do I need to have PRIA to get some mwBTC?
Nope, those are different projects by the same community and same developers. You can actually have both.
When can I start claiming my share of the reserves?
This can only be done when the mwBTC reaches the minimum supply of 1 and someone calls to finish transactions. From there, everyone has 35 days to take their cut from the permanent reserve and be rewarded accordingly.
Do I need to keep moving around the mwBTC I have?
Well technically, you don’t need to do it every day, but just make sure to check on the inactivity counter and not let it reach zero. You can access your wallet and see the status of your inactivity here.
If the final supply of mwBTC is 1, how can I get a share? And also, wouldn’t that share be small?
The indicative “1” would be divided into percentages with everyone holding mwBTC at the time it reaches the point of the final supply. Since the reserve is quite large, a percentage of that one can instantly…well… you do the math.
Where’s the smart contract for this?
I can’t transfer MetaWhale between accounts. How can this be fixed?
MetaWhale can only be transferred to an account that has previously bought it (no matter how small the amount is). Once the wallet registers that it has previously bought MetaWhale, then the transfer will proceed.