In the cryptocurrency market, there are stable coins that are likely to fiat. But, there hasn’t been such an instance when a unit of electricity was being evaluated. Ankr has announced its partnership with a DeFi project for its innovative Meter that lets a crypto token have a value pegged to specific units of electricity.
According to its announcement, Ankr’s new partner in developing uncensorable crypto money is Meter. It is a layer 1 DeFi project that has its own low-volatility token called MTR. Each MTR token has a value equivalent to 10 kilowatt-hours (kWh) of electricity. This is a unique way of stabilizing crypto money because, as a resource, electricity has also been at a price more stable than any fiat currency historically. The unique architecture of the Meter system removes all the risks of counter-parties, oracles, and regulators. It makes the MTR tokens more risk-free than any fiat-backed coins or crypt-based coins.
By adopting Meter, Ankr is aiming to offer its users with the deployment of Meter nodes and Validators across their crypto exchange network. As a service that builds cloud infra for blockchain apps, Ankr will also play an active role in upgrading the Meter infrastructure. It will host the foundational nodes of the infrastructure for the network.
Meter: A Game-changer DeFi Project
By tying the value of tokens to electricity, Meter uniquely blends its consensus mechanism with the token economics. It innovatively applies a hybrid consensus model, where it uses a Proof of Work (PoW) for building low-volatility tokens (MTR) and also uses a Proof of Stake (PoS) for governing these token (MTRG). This model validates transactions efficiently, which makes Meter a more decentralized, secure, and super-fast system.
Meter also supports the stable purchasing power of the users, which enables them for long-term hedges as well as everyday transactions. It also makes crypto money more stable and uncensorable. Projects like these improve the user experience of crypto trading software such as Bitcoin Profit. With this partnership, stable token value for all DeFi apps gets created. This is likely to resolve the unfeasibility of conducting crypto transactions when there is volatility between the exchange rates and high competition between vendors transacting in fiat currency.