A prestigious blockchain company Bloq has revealed the launch of a new digital currency termed as Metronome which can be a potential threat to the famous bitcoin saga. It has been announced that the currency will be on sale from December this year. This is considered an important development in the digital currency world as the founders of Bloq are known industry experts.
Additionally, in a recent report, the company claims that Metronome eliminates all the distribution loopholes which are currently prevalent in cryptocurrency. The bitcoin market has currently reached a whopping number of $100 billion.
The CEO of Bloq named Jeff Garzik expressed his views on media saying:
“Today, bitcoin faces existential threats from forks, developer drama and so on. Knowing what we know and having a clean sheet of paper, we asked what what would we build and the answer is this”
A major distinguishing factor between Bitcoin and Metronome is the way both are distributed and sold. Metronome will be sold through a series of auctions as compared to cryptocurrencies which are being mined using extensive electronic power through computers.
According to Garzik, the first sale of Metronome will be executed over several days and later a reverse auction will be held with a base price of $500. However, the price may drop in order to match demand and supply dynamics.
Another founding member of Bloq, Matthew Roszak said that the reverse auction will provide an opportunity to many people to own a Metronome and restrict large investors to buy huge blocks of the currency.
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The company made an announcement explaining the details of the auction process which is as follow:
“Upon launch, an initial supply of 10 million MTN tokens will be issued, with 8 million MTN tokens sold in a descending price auction (“DPA”) for Ethereum’s ether currency (ETH). Each day thereafter, new MTN tokens will be sold in a DPA at the rate that is the greater of 2,880 MTN per day, or an annual rate equal to 2.0000% of the then outstanding supply per year, providing a predictable supply over time. 100 percent of the ETH proceeds from the initial and daily auctions will remain within the Metronome smart contract system to provide liquidity to the MTN marketplace. Bloq will retain a 2 million MTN author retention, and will not receive any ETH proceeds from the auctions”
Smart contract of Metronome
It has been decided that Bloq will retain 2 million units of the currency that will be used to stabilize it in the beginning. Later, all the proceeds from the daily auctions of Metronome will be distributed in an automated manner through the smart contract.
Interestingly, these smart contracts will decide the future potential of this currency, thereby making it less liable to human errors. Furthermore, Garzick also claimed that this currency code has passed many tests by well-known auditors and also has no chances of hacking. Furthermore, Bloq has assured its investors that Metronome will be run by automated auctions in future.
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Bloq has opted for cross-blockchain
Bloq has also revealed that it will be using the existing infrastructure of digital currency thus opting to go for ‘cross-blockchain’. The company will primarily use the networks of ethereum and bitcoin. They will also allow owners to transfer their currencies into Metronome.
Although using the same network might make Metronome more flexible but it poses almost the same risks in case the basic network collapses. However, Bloq defends itself saying that this problem will be solved through smart contracts which provides stability.
Nonetheless, the real potential of the new currency will only be determined with the passage of time. Regular investors are only concerned with some gains from these currencies.
The investors should note that bloq is not the first company to develop its own cryptocurrency as many others have jumped into this bandwagon. But the proponents of Metronome believe that once the project picks up, the new currency can turn out to be a major threat for Bitcoin.