BERLIN, GERMANY, April 26,2021, MetaWhale Gold (MWG) is the first decentralized financial instrument that introduces a hybrid monetary policy paired with ultra-deflationary tokenomics. It offers speculative value, combined with the security of an automated, ever-growing PAXG gold reserve, which is ultimately divided among investors. PAXG is a digital asset-backed by one fine troy ounce of a 400 oz London Good Delivery gold bar. Someone that owns PAXG, owns the underlying physical gold. As a scarce asset, it is very useful to hedge against bearish market cycles, which makes it the perfect choice for traditional investors.
Like many blockchain protocols, MetaWhale Gold’s deflationary nature means it is “programmed” to get more scarce over time, which in theory makes each token more valuable while the total supply is decreasing. Unique to MetaWhale Gold, however, are several core features. First, it builds a reserve of gold to back its value; second, it pays out its collected gold to all holders once it reaches minimum supply; and third, it restarts itself perpetually.
Perpetual Arbitrage And Sustainability
Essential to fully grasp the concept of MetaWhale, is to understand what it is trying to solve and what opportunities it wants to offer. Currencies with solely inflationary or deflationary monetary policies are flawed and vulnerable to implosion due to their static nature. Monopolization and centralization of such currencies lead to a huge loss of purchasing power, inequality, poverty, bankruptcies, a decrease in quality of life standards, and sometimes even war. In both models, this would result in overpriced assets once they reach their critical phase, which leads to a lack of new market participants, and cessation of money inflow. A more flexible solution could protect asset holders from those issues and give a perpetual arbitrage opportunity to market participants.
Deflation and Reserve Management
Another aspect of MWG is that its supply deflates more than virtually any other currency: The initial supply was 1,259,000, and it deflates down to 1 MWG (currently at 1,181,000 MWG). The supply deflation happens through a small fee on every transaction. Buys and transfers have a total fee of 2.5% while selling has a total fee of 6.25%.
A portion of those fees is permanently burned, decreasing the overall supply. The remainder of the fees is used to fill MetaWhale Gold’s temporary reserves with MWG. Those are used to manage the protocol, and its functions are vital. In different steps, holders can trigger the smart contract to fill the liquidity pool, or buy PAXG for the permanent reserves.
The Forced Sell / Inactivity Burn Mechanism
There are measures in place to ensure the deflation occurs. Investors must sell or transfer a minimum of 6.01% of their MWG balance every 35 days, or they risk getting “Force Sold”. Here any caller is able to sell 6% of MWG holdings, where 1% is given to the caller as a reward, and 5% wETH stays in the affected wallet. More importantly, investors must sell or transfer any amount at least once every four months, or 50% of their holdings can be burned and 50% would be rewarded to the function caller. These measures are essential to the protocol’s ultra-deflationary nature, and without them, the supply would never reach 1.
Compounded Yield without Staking
There are many projects that offer staking of tokens in one fashion or another, but they usually become more and more diluted the more participants they have. Generally yield is issued in the (speculative) same token, creating inevitable selling pressure, or in another related token (see governance tokens) which also rely on the success of that same team.
MWG offers yield by a growing, stable gold reserve and its deflating supply.
MetaWhale is a suite of self-renewable deflationary and elastic supply assets backed by its own automated self-filling reserves and liquidity. It is aiming to tackle the task of building a currency that is elastic, scarce, and value-backed but also sustainable. It wants to set stones for more awareness, research, and development of new and better economic concepts in the future.
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