In 1992, the American writer Neal Stephenson published Snow Crash, alluding to the concept of the metaverse for the first time. The word metaverse comes from an abbreviation of the Greek word “meta,” which means beyond, and the English word universe. It refers to a virtual world where users, represented by avatars, can move around, interact with each other, and join communities therein. As such, the possibilities of this environment are nearly endless. To explore a metaverse, users simply use a computer to connect through a web app. Sometimes, a virtual reality (VR) headset is required. After joining, users can move their ‘customizable avatars’ to various locations or scenes.
MetaDex — Pioneering Decentralized Investments
MetaDex is an innovative protocol governed by a Decentralized Autonomous Organization (DAO) running on the Polygon network. Its native token, METADEX, plays the roles of utility and governance.
The protocol is based on a stable, autonomous, sustainable tokenomic model.
The protocol is built on a sound tokenomic model that is based on a bonding curve. A bonding curve is an automated market maker that implements a mathematical formula as a set of instructions in a smart contract. This triggers the minting and burning of tokens while deterministically adjusting the token’s price according to demand. The bonding curve defines a relationship between a token’s price and supply by increasing the price as demand increases and vice-versa. This makes the token price a function of the token supply. In addition to this deterministic token pricing, the bonding curve guarantees instant liquidity to the protocol’s participants.
Beyond the fact that the MetaDex protocol is governed by its DAO, it also incorporates reputational ranking in its voting system, granting more (and, in some cases, exclusive) voting power to DAO members with the most consistent positive involvement in the governance. Notably, the DAO solely makes strategic investment decisions.
Considering that the world of the metaverse presents new investment opportunities in many areas including but not limited to research, real estate, the job market, medicine, video games, and education, the decision on what to invest in is not trivial. This is where MetaDex comes in. The MetaDex protocol aggregates various metaverse projects’ tokens and assets through its treasury.
As an overview, the protocol’s treasury can be viewed as a complement of the following:
1. The bonding curve liquidity.
2. Asset pool — Which holds treasury assets. This treasury will be used to aggregate metaverse tokens. This fact will positively impact the price of METADEX.
3. DAO wallet funds the protocol’s research and development, developer salaries, marketing, giveaways, airdrops, and more.
The DAO may decide to have long-term and/or short-term investments held in the asset pool. Assets deemed for long-term investment are held in treasury under the expectation that they gain value over time. These assets are not to be sold. The DAO may acquire or use part of its long-term assets for other short-term revenue-generating activities like lending or trading. Since these assets are no longer held in the asset pool but are transferred to the respective money-generating activity, they are deemed short-term investments.
Why Choose to Invest in the Metaverse?
As you already know, many companies have begun investing in and developing their own metaverses.
Researchers from Grands Views Research, a market research and consulting company based in the United States, estimated a 39.4% growth rate in the metaverse market between 2022 and 2030. According to the consulting firm McKinsey, the metaverse market could be worth $5 trillion by 2030.
These projections strongly suggest that we are in the infancy of a budding market. For us, taking a seat in the metaverse wagon is the way to affirm that we are in the right place at the right time.
And What Is the Strategy Behind It?
MetaDex prides itself on autonomy, reliability, and sustainability. In recognizing that a healthy and sustainable treasury attracts people as much as the philosophy of a project, MetaDex’s objective is to progressively build an increasingly metaverse-oriented asset pool in an assured and provably sustainable fashion.
Treasury capital is used by the DAO for investment in various metaverse projects. The decision of which metaverse projects to invest in (by acquiring the tokens and/or assets) and how much capital should be put into the investment is arrived at by voting. Over time, assets and tokens held gain value. Furthermore, the DAO may choose to gain revenue through other activities like lending out acquired assets. Overall, this will positively impact the treasury health and, consequently, the price of the METADEX token as more investors buy into the protocol.
Why Choose Polygon as the Blockchain
Polygon is an environmentally friendly, Ethereum scaling network with faster and cheaper transactions. With Polygon, a transaction costs around $0.00007 compared to Ethereum’s $4 — a non-negligible difference for users and investors. This network can accommodate nearly 10,000 transactions per second, equivalent to the combined Visa and Mastercard networks. Furthermore, companies like Meta (formerly Facebook) and The Sandbox (recently) have chosen to develop on Polygon.
A Little More About MetaDex
Marketing and presence on social networks are a priority for the growth and development of our ever-growing community to inform, communicate, and engage about the best in the metaverse market.
In addition to research, we have relied on the continuous presence on the networks to effectively engage with our ever-growing community. This is why some AMAs will be set up over the summer with our developers.
Our marketing and developer teams are constantly working on how to animate and reward our community members through sweepstakes, airdrops, and giveaways. Furthermore, the developer team continually researches and improves the protocol to offer new possibilities and opportunities.
As for the developer team, they are constantly working on perfecting the protocol to offer new possibilities and new opportunities.
The MetaDex protocol offers multiple financial possibilities like long and short-term aggregatory investments, staking (in our roadmap), and play-to-earn games, all based on a deterministic token pricing model with guaranteed liquidity.
We are crypto and metaverse developers and enthusiasts immersed and invested in the metaverse world, sharing common values and a passion to build and contribute in this rapidly growing space. Our team is international. For the moment, we have decided to remain anonymous.