MetaWhale Gold – The Crypto Gold Standard
Metawhale Gold takes all of the prominent features of Pria (perpetual inflation and deflation cycles and dividends) and marries them together with one of the most fundamental pillars of our monetary policy that was removed in the 1970s.
Did you guess gold?
What’s with our society’s obsession with gold?
Every computer and electronic device in the world uses gold. And what’s more fascinating is every civilization in history wore gold to display status and wealth.
Today, those coveted Nvidia 3000 series graphic cards are status symbols also made with gold.
But the obsession goes deeper than how we use gold in our everyday lives. Gold is created from dying neutron stars, one of the oldest stars in existence, collapsing into a black hole. It takes an ungodly amount of energy to create.
It ties us back to something ethereal from our past…
Introducing MetaWhale Gold.
Sit back, and let’s break down this exciting and ground-breaking crypto experiment together.
What Is MetaWhale Gold?
MetaWhale Gold (MWG) is the world’s first gold-backed, self-renewing, decentralized, dividend-bearing, gold-backed reserve currency.
If you have no idea what we just said, that’s okay. DeFi Labs generally releases some of the most state-of-the-art protocols that break Etherscan, DEXTools, and smooth degen brains.
Like PRIA, MWG has an elastic supply that avoids the dangers of inflation and deflation but adds a new level of innovation only a mad-scientist could dream of.
So why do we need the self-renewing part? First we need to remember who really controls our central banking system.
A private corporation called the Federal Reserve is responsible for managing the circulating supply of US dollars. At any moment, they can decide to invisibly tax your cash by 2% every year through a process called inflation.
What is the Federal Reserve?
That might be fine, except that some guy showed up in 2020 and started doing this.
The Great Depression is what can happen when deflation occurs.
These are the perils of inflation and deflation MWG was designed to solve.
MWG addresses both of these problems by taxing every transaction to fill its gold reserves in the form of PAXG. Each PAXG token is backed by a troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults.
Aka, good olde gold.
And how does MWG issue dividends? You guessed it!
Dividends are issued in PRIA.
Now sprinkle in a passionate community of traders, investors, and hodlers who are rewarded for active participation and completely obliterating zombie wallets (wallets with inactivity)—plus some Non-Fungible Tokens (NFTs)—and what do we get?
The mother of all crypto experiments.
Who Is Behind MetaWhale Gold?
MWG is the third protocol released to date by DeFi Labs.
Dr. Mantis is the anonymous developer behind MetaWhale. In fact, he’s been compared to Satoshi Nakamoto, the pseudonymous inventor of Bitcoin.
And with a proven and well-respected track record for delivering consistent works of programming art filled with fractals, mathematics, and references to historical events and art, one has to question if he’s a passionate nerd or a mad scientist obsessed with developing the next evolution of finance.
Dr. Mantis has also personally locked up a significant portion of ETH to ensure MetaWhale Gold’s longevity.
Of course, these protocols would not be possible without properly crediting another anonymous developer, BitByTheByte. Bit made the web interface degens use to interact with MetaWhales.
A small group of volunteer community members help promote MetaWhale Gold’s mission. These are crypto enthusiasts who wish to see the industry move away from get-rich-quick schemes toward more sustainable monetary systems for the benefit of all.
How Does MetaWhale Gold Work?
Naturally, you can’t just ape into a complex smart contract and YOLO your way to millions without first understanding some important concepts about MWG. The detailed documentation can be viewed here.
But the short answer to how it works? A single button.
MetaWhale Gold uses just one button called “Manage Reserve” to perform a series of 8 steps. Each step is an action such as purchasing gold, adding liquidity, airdropping dividends, and more.
Tokenomics
On Jan 28th, 2021, the MetaWhale protocol launched live on Uniswap. There was no presale or team tokens. Every community member acquired their tokens on the fair and open market via Uniswap.
There was an initial supply of 1,000,000 MWG, plus—as a thank you to PRIA supporters—an additional claimable airdrop of 350,000 MWG. Each trade burns a portion of MWG until the minimum supply is equal to 1 MWG.
Initial Airdrop
The thank-you airdrop was divided in the following manner:
- 6% for the Developers (evenly split between the 2 developers)
- 4% for the Marketing Contributors
- 5% for PRIA NFT holders
- 20% for PRIA holders and liquidity providers
The airdrops occured when two conditions were met:
- MetaWhale Gold made its first permanent reserves filling.
- MetaWhale Gold started to hold tokenized physical gold.
From here, the community had 24 hours to claim their airdrops.
Not everyone claimed their airdrop, however, which lowered the total supply to 1,209,431.32 MWG (a good thing for the community, since fewer coins in supply positively impacts the token’s value).
Buying MWG
Every MetaWhale Gold buy (or transfer) sends 1.25% of the total transaction value to the MetaWhale Gold reserves, and the other 1.25% to a burn address. So buying MWG is “taxed” at 2.5%.
Selling MWG
Every time someone sells MWG, 2.50% of the total transaction value is burned, and 3.75% is sent to the MetaWhale Gold reserves.
That means, each time you sell MWG, 6.25% of the total transaction is “taxed.”
How MWG Fills Its Gold Reserves
The reserves use Paxos as the custodian for its tokenized gold, PAXG.
PAXG is an ERC20 token that lives on the Ethereum blockchain and is backed by real gold: Each token represents one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults.
Addressing Long-Term HODL
Short answer: You can’t.
Inactivity burn mechanisms have been put in place to ensure deflation can occur. Imagine if someone held onto their wallet throughout the entire span of deflation—MWG would never reach its last supply token.
To avoid the inactivity burn, you must sell or transfer more than 6% of your total wallet amount every 35 days.
So let’s say you have 100 MWG, you need to log in to your wallet and sell or transfer more than 6 MWG.
These are the clever details cooked up by Dr. Mantis.
A Light Tap – Forced Sells
At 35 days of inactivity, anyone can initiate a burn on your wallet, whereby that person receives 1% of your MWG as a reward, and 5% gets converted to wETH and returned to your wallet.
Essentially, you autopay the community 1% to convert your MWG to wETH.
You can keep more of your MWG by initiating a transfer yourself through the dashboard. If you hit the “Reset forced sell counter,” you will be transferring just over 6% of your balance to yourself, though 2.5% of that amount will still be taxed like any other transfer. Such rules allow the deflation to continue and benefit everyone long-term.
Zombie Wallets – Inactivity Burn
What you really have to watch out for is the four-month (or 122-day) inactivity burn. At that point, anyone can burn 50% of your entire MWG balance while claiming the other 50% as a reward.
To avoid complete annihilation after this extended period, navigate to the wallet section on metawhale.io and find this button:
Then click it as soon as possible!
The Bigger Picture
The big idea here is that MetaWhale Gold (MWG) is going for ultimate sustainability and value, making it the Crypto Gold Standard.
The US Dollar relies on a central governing body to manage and maintain its circulating supply and value. But this is decentralized finance, right?
Taking a page from stablecoins, MetaWhale Gold uses the combined buying and selling power of its entire community to fill up its claimable gold reserves.
The self-renewing architecture inside the MetaWhale protocol allows it to mint and burn its own supply, which regulates against the perils of inflation and deflation.
Dividends are issued to community NFT holders. So, if you were one of the lucky ones that claimed your PRIA NFT, congratulations! You’ll be rewarded with dividends from the PRIA reserve. If you weren’t so lucky, you might still have a shot by grabbing one on opensea.io.
Finally, the protocol adds liquidity through one of the eight “Manage Reserve” functions to ensure the ecosystem maintains perfect equilibrium.
As a gesture of good faith and commitment, Dr. Mantis has locked liquidity away for a long time.
How Does the Reserve Work?
There are two reserves:
- Temporary Reserve
- Permanent Reserve
Every trade, whether it’s buying or selling, fills the MWG temporary reserve. Once the temporary reserve reaches a certain point, anyone in the community can manage it by clicking the “Manage Reserve” button.
In chronological order, the reserve manager executes one of eight steps from this list of actions.
First, the reserve manager converts 85% of the temporary reserve into wETH. Ninety-five percent of that buys PAXG for the permanent gold reserve, while 5% buys PRIA for the PRIA reserve, which will ultimately be distributed as dividends.
The remaining 15% of the temporary reserve fills the liquidity pool.
The system rewards the manager with a portion of MWG tokens and adds them to a rolling list of 20 managers so that no one person can spam the system and gain all the rewards.
Pretty cool right? You basically become this guy. But within a regulated system that won’t spiral out of control.
How Does MWG Sustainably Deflate?
Remember when King Leonidas kicked that Persian messenger into a well, yelling, “THIS IS SPARTA!” after he insulted him?
In a king of the hill style of deflation, MWG tokens are traded and burned until just 1 MWG is left. Then you can press the “Finish” button on the dashboard, and all trading halts.
As a fail safe, if no trades occur for three months, you can click an “Inactivity Finish” button, which will raise the minimum supply to the current total supply and allow the reserves to be claimed earlier.
Once trading halts, you have 35 days to redeem your portion of PAXG from the reserves, which is essentially your percentage of MWG holdings relative to the total supply.
As an example, if the reserves hold 53,120 PAXG or $1 billion at minimum supply, having just .1% (.001) MWG means you’re a very happy camper/millionaire.
After 35 days, everyone should have claimed their PAXG tokens, and anyone in the community can call the “Big Reset” function, which instantly mints 1,000,000 MWG into the supply…and the process begins all over again, essentially minting new millionaires-to-be.
But there’s always that fear that whales will monopolize the supply and hoard all the wealth, right? In fact, MetaWhale was designed expressly to dodge that bullet. Taking inspiration from PRIA’s inactivity burn system, MetaWhale does not allow people to HODL, or should we say HOADR?
Don’t worry, we’ll never say that again. The point is, the system ensures a balanced distribution among holders. You control your destiny within that system, but if you slack off, the community takes care of it for you.
Refer to sections:
- A Light Tap – Forced Sells
- Zombie Wallets – Inactivity Burn
Pros and Cons
MetaWhale has reimagined the way cryptocurrencies can work.
It incorporates an elastic supply of hyper-deflation and inflation cycles, enables a self-renewing liquidity pool, ensures value through an ever-increasing reserve of gold and uses NFTs to issue dividends.
To top it off, instead of automating this complex and feature-rich ecosystem, the protocol wraps everything up into a single “Manage Reserve” button that anyone in the community can call and consequently reap rewards.
However, there is a con.
The most apparent downside of all DeFi Labs protocols thus far is that they are not for passive players.
With forced sells and inactivity burns, MWG does not allow you to play the idle long game. You cannot just HODL.
But with active participation, it promises handsome rewards with GODL. (Sorry, we had to! Last time for that nonsense, we swear.)
Getting Involved
Website Metawhale.io (currently being rebranded).
Official Twitter account
Telegram – [Community] [Official]
Reddit – coming soon
Recent News or Events
MetaWhale is already making bigger moves. Recently, DeFi Labs released MetaWhale BTC, putting itself head-to-head with the Big Daddy of all cryptocurrencies, Bitcoin.
The design and tokenomics are the same. However, Bitcoin is brought into the world of Ethereum using renBTC as a bridge.
MetaWhale BTC is set to disrupt the current Bitcoin ecosystem, siphoning its value slowly and redistributing it to mwBTC holders at the end of its deflationary period.
Meanwhile, rumor has it that Dr. Mantis, who is known to reward avid supporters, is cooking up some pretty cool augmented reality (AR) NFTs. We can’t wait to see just what these are and who gets them!
Our Thoughts & Opinions
We think MetaWhale Gold by DeFi Labs has established itself as the gold standard for cryptocurrencies.
Think of MWG like the first iPhone with all the complex functions, systems, and features executable by a single button.
DeFi Labs, Dr. Mantis, BitByTheByte, and the community have all showed us there’s a bright future to look forward to in the crypto space.
MetaWhale Gold closes the loop in our digital evolution by tokenizing and redistributing one of the most universally violent events imaginable.
At the time of writing, MWG will be closing in on its first milestone of acquiring 100 PAXG tokens. And the Dr. has a surprise for the community….
Please leave a comment below and tell us what you think about MWG.
