{"id":"7-4UNSyoK9M","title":"Whiteboard Series with NEAR | Ep: 27 Xiaoshan Zhu from Meter","description":"Xiaohan Zhu (  / xiaohanzhu  ) and CTO Illia Polosukhin (  / ilblackdragon  ) talk about Meter.io in the 27th episode of the Whiteboard Session. Meter provides infrastructure for DeFi.\n\n\n------ About Whiteboard Series --------\n\nThe Whiteboard Series with NEAR is a set of video interviews with Founders who are building scalable solutions for Blockchain.  We deep dive into their story, what they're developing and how it is helping the ecosystem. \n\nFollow the latest from NEAR Protocol on, \n\n\nDiscord: https://near.ai/discord\nMedium: https://near.ai/medium\nTwitter: https://near.ai/twitter\nGitHub: https://near.ai/github\n\n\n#WhiteboardSeries #Blockchain #FutureIsNEAR","channel_name":"NEAR Protocol","published_at":"2019-09-06T00:00:00.000Z","thumbnail_url":"https://img.youtube.com/vi/7-4UNSyoK9M/hqdefault.jpg","transcript_text":"hey everyone welcome to new whiteboard episode today was with Xiao Hong from meter we'll discuss how their platform works do you want to start by introducing yourself and the project yeah sure so hi everyone my name is Xiao Han Zhu I actually have an engineering background like for a while and then I move to like investment finance so I used to run a VC fund cause the MT capital we invest in Kryptos and blockchains that's back in 2016 that's how I got into the space and then while investing in this project we've been just thinking like what's the evaluation how do we value these cryptocurrencies what are the fundamental use cases so that's when we realized that we need to create a different type of infrastructure to really empower decentralized businesses so that's how we started meter so basically on a high level meter the goal of the meter of the meter project is to create Alibaba web 3 what it means is that we want to basically standarized interconnect values and then settle them on blockchain quickly so fundamentally we do three things one is that we create a universal unit account that's native for crypto not linked to any fiat currencies but fundamentally it's economically stable in value secondly we basically redesigned the consensus and the game inside PR the economic game inside crypto currencies to create a faster consensus approach and finally we support inner communication with existing crypto currencies like Bitcoin in Syria and also in the future other block chains like near for example maybe yeah oh yeah that's a high-level review yeah let's dive more how exactly it works yeah sure so maybe let's start with the stable unit of account sure yeah so basically if you look at all the crypto currency today for example like Bitcoin well when Bitcoin was designed I think Satoshi in one of his like emails France can comment on that basically it wasn't sure how to design the the monetary policy to be like like to be like basically and she knew so that's why like he put in like the 21 million hard copy in there which made Bitcoin that excellent a vehicle for investment because of the limited supply the richest supply but for any economy when the system grows you run into a deflationary issue and in a deflationary economy it actually discourages production and investment so let's say if I'm like a baker so like today I for example purchase the flour purchase sugar with some currencies I want to make cake and make a make a cake of several cakes and sell them tomorrow to exchange for more currencies but in a deflationary economy it is possible that the next day when you sell it because it takes time for you to create the pay create the cake the the currency itself already rise in value and the amount of currency you can exchange for is even less and the ingredients you you pay so which make it doesn't make sense for people to do any long term investment or production yeah you cannot take a loan to buy these ingredients of better to just like held your currency just asleep hodo how do we yeah yeah so basically that's a and also basically if you look at any financial assets on concern for example because of this issue over the long run you will see your financial products or like financial assets drop in value in term of this area so when the buyers see these are kind of issues why would they hold your financial products right I mean why not just hold the the platform currency so in that case you are essentially competing with your own ecosystem so that's a that's the same we would like to change but in order to create something like that we need to basically create a like a model that fundamentally link the cryptocurrency creation with physical values in the physical world so basically you can imagine like we have two world right so we have the physical world and we have the crypto world so basically physical world export like computing and electricity to the crypto world and the crypto world export financial products basically crypto currencies oh yeah I mean it doesn't expert exchanges value yeah interacting between two economies and there's a favorite famous theorem in international finance called the impossible Trinity basic a like there's a fixed exchange rate there's a free flow of capital and there's independent monetary policy basically these three things cannot coexist at the same time so for example there are like cup of like people and projects creating stable coins right so like I think the makers yeah basically like mana stable like a sea Brett he had like a pretty famous article that categorized the stable coins into three categories three categories there is a basically there's a crypto back there is a Fiat back and there's another one you probably call it grows back basically this is an algorithm based yeah stable points so basically we feel there are centralization issues in all of these approaches so for example first for all the grows back like cryptocurrency I mean like a stable coins we don't feel any of them a valid so far so we can ignore this case basically for the other two approaches like fiat value this yeah it's some Bank somebody since in the back yes somewhere I had to sit on the pan for the crypto back there actually although they they seem to be like decentralized but there is a centralized to Oracle in there and the Oracle is actually one of the single point of failure in the system so there is a project called Phoenix right so just so like last week because one of the round data feeds in their Oracle they created like 37 millions and study this area which translates to like seven billion dollar in like paper value so you can see like if you build a financial system on top of like certain data feed there's a potential risk in a system and though you're like for example even your Oracle system is designed very strong very robust but still the data feed itself there may be centralization issues and also maybe like failure issues as well do you think it's possible to build for specifically price feeds to build a decentralized oracle like or like games theoretically balanced oracle it's it's difficult because the the in sense the incentive doesn't match so for example like the acid running on a platform maybe you're like in hundreds of millions or like billions but the incentive typically provides in now like Oracle system you think about like an Oracle systems a market cap right so it may be like very disproportional to the value it carries on the honor system and also like because the data feed has to be like on all the time in order for the system to function properly so that's a very challenging problem because for example none of the software we can guarantee hundred-percent like reliability right even the software is reliable the hower may have issues so if a public chain running into this issue and yeah maybe it will just stop like processing transaction for a couple hours or something but if data feed is wrong like it could potentially collapse the entire system so fundamentally we feel these type of approach is more like enterprise software level security not store value levels of security but let's talk about like a store value level of security how this can be done right so basically would just now we mentioned the impossible Trinity please say it based on this in order to have a fixed exchange with fiat currency there's only two ways to do it one is the you have the Chinese approach you do not allow free flow of capital so which no one likes right or you have the Hong Kong approach they say K they have a hundred percent reserve in the field currency they pack two in a single pool managed by like and what conversation yeah so and they give up their own monetary policy so in that case they can keep the pack but fundamentally like these are all like centralized approach right so how do we solve this in a decentralized environment so the approach a meter is taking as instead of trying to pack with any fiat currency we give up on this edge and take the other two edges so basically we're trying to create a basically essentially a new currency that's native in the crypto world but fundamentally it's impossible to cheat and economic economically is stable so how it works is basically just now we talked about this two worlds right if you look at the two rows the only link between them is the computing and the electricity which is in the proof-of-work world means the overworked mining so if you look at the economics for the miners so basically they have the block reward they have the transaction fees so all of these are virtual and on the car side they have capex and OPEX so in a highly competitive environment like proof-of-work mining at the end of day only OPEX matters so basically that's a electricity call see essentially so for them basically like you can see like all the Bitcoin miners always tracing the lowest electricity price at lowest exit yeah yeah it's okay to lower their OPEX essentially so what we do differently from Bitcoin is Bitcoin because the supply is set fixed so the only response Bitcoin can have to the to the supply and demand is basically the price like basically the price changes based on supply and demand so for what we are we have a fixed production cost in the system so in order to create one meter so the cost of production for proven work mining is always around ten kilowatt hour of electricity so basically when we set a like a fixed production cost the response is essentially the quantity of the of the token so the fire the flash power is a more exactly exactly so basically from the miners perspective they will only create the coin when it economically makes sense for that which means though there's enough margin for them to do the footwork mining and that profit chasing behavior will naturally create a feedback to the system he essentially creates a discipline to a monetary policy in the system so basically like over the long run it will settle at like basically essentially pact to the competitive price of electricity yeah yeah and we actually have data like show you miss basically if you look at the competitive price of electricity so we're and then we have data like this so this is from 1960s let's say there's 2013 so basically this is the measure by US dollar and this line it's basically the real price which means suggested for inflation so basically over these period the crisis is relative stable the purchasing power of electricity is actually more stable than any fiat currencies in the world it is a stable across the world basically this is a competitive price of electricity legs in the global competition yeah and actually if you look at the electricity price across the globe actually us as one of the lowest country in the world yeah so that's on the high level how we create that like unit of account but once you do this that involves some changes in the consensus because when you design the economics and games like this the hashing power in the system is no longer gonna be stable so there you cannot like protect the system just through the hashing power itself so basically that's what we do in our consensus innovation yeah so before it go to consensus just for me to understand yeah right so let's say you have it's a 10 kilowatt right is one mirror and we planning to use like a Bitcoin so mining algorithm when we launch so it's like pretty clear like no no no no existed too and there's always the opportunity calls for the miners so even you've got free free electricity you always have to look at whether I should mind Bitcoin or my meter and well you will only do it when it economically makes sense to you so but let's just let's just discuss an edge case right let's say the price of meter goes below competitive price of 10 kilowatt right yeah so let's say this this is right now so actually the way to look at it is because there need to be enough margin for the Bitcoin miners so the price where it settles that we believe is gonna be a one to two dollar range for this for this because even for example like it's six cents like for the competitive electricity price which translates to 60 cents right but for a normal like operation for there's to be enough margins for the miners you will see the price settles between 1 to $2 just because like they want a margin yeah otherwise there won't be a sustainable so but yeah just for me to understand so let's say price of meter goes below for whatever reason yeah how does it recover we have another we have another economy design to basically consistently like removing currency from circulation yeah okay which are related to the Consensus tomahto then let's go to the Consensus yeah so basically like if you look at all the existing cryptocurrencies you know there's one interesting saying like people are mixing currency creation with record-keeping so which is perfect when like Satoshi design is because when you first design like a game like this you need to make it simple and you need to have like involved party as little as possible but when the system got mature you'll notice this is actually completely two different consensus I mean the record-keeping and currency creation basically record-keeping what you trying to provide prevent as the double spending part so that is actually directly observable to all the participants in an hour you just need to make sure the information is hourly propagated so that doesn't require a lot of energy but there's another consensus which is the economic consensus plus how much the newly-created coins are worse how much new value has been added to the system that is implicit and obviously that requires a lot more energy to reach that consensus so basically in a proof of work system it's a miners that reaching that consensus but in the proof of stake system there's actually people only care about the first recordkeeping consensus there's not much consensus like the the economic part so typically like people will just say like we have like certain inflation rate and if you participate in staking you will not be diluted if you don't then you'll be cut alluded in the system right so that's a that's a proof of stake so a meter basically we separate the two consensus explicitly so we use the proof of work for currency creation for notional time and one of the sources for randomness and the record-keeping is done by basically proof of stake and we have two tokens as well the proof of stake token we call it governance token so basically you have to stake that to participate in the and a proof of stake record-keeping process so in our system we have a like a hybrid chain approach so so this is let's say this is a proof of stake chain so actually all the transaction records are capped here and then we have like a proof-of-work chain so kind of checkpoint the blue snake chain yeah exactly basically here the for example found the proof of stake side this is three to five seconds per block here this is like one minute on average so basically pure Article II these key frames this is what you park right like they will merge with each other and cross reference each other put the Merkel rows on each other but basically all the proof of work chain there is no transaction record down there there is just basically like solutions for the puzzle and the difficulty like basically you calculate a bunch of solutions to the puzzle and at the end of the epoch you submit it to the proof of stake side competitively basically trying to claim the the reverse for this chain and basically prove a stake side will look at which chain is longer so basically we have a certain threshold let's say each epoch target is like 60 minutes right so let's say 60 minutes and each of you prefer work block on average is one minute so whenever is greater than 60 like here the approval steak side knows this epoch is finishing and we need to like basically change to the next epoch so at this stage basically like all the proof of stake validators will look at which chains longer and both for the longest chain and use the nonce on the longest chain as one of the seed for selecting the the next yeah yeah so basically on the on the proof of stake side we run hot stuff and we have we're targeting to have a like a probably like more than 50 to about 100 validators in a committee and the pool can be much bigger because we can randomly pick from the from the pool for the committee yeah so but like in theory you can have like you know there's work here a lot of forks for example yeah but whoever is the longest will win the race Chloe will like but how like this is pretty fast right so this may not propagate in time even if I have the longest fork yeah so whoever gets the approval on the proof of stake sack basically the proposer on the Rufus egg side will just say hey this is the longest chance I see do you guys agree and if I got more than 2/3 people voting on this is the longest chain they see then basically this is chase is chosen and if you couldn't reach like an agreement we move to the next like a proof of stake proposer we're actually changing like the leader for every block to profess that we just switch to next block or would you just do a few stick you say change oh it's like because how self it's like you change is related with chief so basically yeah it's more like a view change okay yeah so I'm just well so there's obvious thing for for as one of the miners I should just DDoS all the other miners so they not be able to send the sense so basically actually like like the way we're looking at is in the future these will be mostly run by mining pools as well so like mining pools all have like the DDoS like in Canada we also I mean because my name polls recently have a lot of sayings they are looking as well for example there's like there's a hidden block attack that they they they are really concerned but they couldn't solve the problem without part of protocol level support we're gonna support that to be more family to the mining pools yeah but like you can also like have your own pool mining as well yeah and also on the proof of stakes at all of the validator were run we'll be listening to the pre o W like Network as well so basically they're running like sort of like a foo note on POWs face yeah I mean my yeah just my main point is like let's say you know there's a bunch of validate like Bruce take validators if some of them are inside one pool like this pool will be preferred just because they'll get the info faster like they produce the block in the first place so it's all just propagate and this is you said this is three seconds right yeah so like how long is your like this is one minute yeah so what is the propagation time for blocks because o because everything is empty block it's pretty fast yeah it's very minimal the propagation time how does the proof of stake validators get rewarded then Oh so that's a like how the to token system works basically we have like unchanged options for the for the governance token so basically let's say today like I have three governance token but the government's talking is the proof of stake token right like released so basically in order to like compete for this three tokens like people have to bid with the currency token let's say I put in like five currency token to the for like competing for this governance token right so after I win the reward I mean after I win the dumbness token this like basic a five currency token belongs to the system now right so basically what we do is a portion of them will be distributed to into a liquor reserve let's say this two goes to like a reserve pool and then goes back to all the prophets like validators as a reward as bloc rework gradually release block-by-block basis and then a portion of them will be where we have something called like a stability fund well put into that fund is also a reserve system and the rest will be burned so basically the burning will create like continues in fact on removing currency from circulation so but why why would I love to compete for this why would I participate in auction basically that's the governance right and record-keeping right of the system so think about like this is the the banking system of the entire financial system right well this basically represents the governance rights in the banking system and this token can actually extract values from the from the system for example from transaction fees from like state storage and also from for example the daily auctions okay so this is this new tokens it generated Perry Park this is like an inflation of comments like this is a property like more like a day or like a week yeah for some period of time yeah so this is like just inflates Chiron stalkin yeah so all the stake here's get inflated by this amount right yeah that's right yeah and then they they are obligated to participate in the auction oh you are now the obligated to participate whoever wants the governance token this one is basically like a fixed supply curve so you can imagine the governor spoken is the Bitcoin and the currency token as the energy is recourse the energy that you burnt when you mind the Bitcoin and we use that as a unit of measurement in the system all right yeah I'm just I'm just trying to think what is the use cases Oh like who as a wine of this validators what is it my goal here like so if I have more governance talking straight you will be earning more of these fees I will be or earning more feet like I'll have more seats in the hot stuff consensus or how does it work basically I mean like so like you have like hundred let's say about validators yeah so so I am like one of those guys who has more staking yeah well I get more you work from just more transaction fees for this block know if you're not doing 100 yeah won't even get transactions but if I I am in 100 like yeah the more like the Morris takes a more I get there and it's proportional to the sound ASIC it what we do is like we because now we have like a unit of account in the system we actually know how much when you need to have to cover your bases for example each validator they need to spend probably like ten thousand dollars per year to maintain their machines so basically we can say like first you will get this ten thousand a meter and then like anything about that will be like distributed proportionally okay so you have like some minimo yeah so basically like to cover your your eggs may say Q's expense so where's that meat are coming from or it's from like but for example initially let's say there's very little transactions okay so the transaction fee is sort of zero yeah yeah then it's coming from the daily auction I mean not daily auction but time interval adoption rights when I tell the government okay so you sell let's say sell eggs governor's talking right yeah people bed all right yeah I'm assuming that only top bed is being taken up or they just pretty much basic a like go all the bids received on that day get look at the same price let's say for example you have like three governance tokens right today you've collected five meter tokens okay so each one clears that size 3 over 5 yeah there's just like like that chuckling yeah single prize the auction yeah okay and then okay so so you collect this meter tokens out of it so it's possible that you'll get less just because like right now people also don't get the governess tokens right but basically like because the stinking token also like I mean it's maintaining the records right yeah and also have a fake supply so this is more like a store value poking in the system wait when you say a fixed supply so the curve of governance talking it's like this it'll be less and less you can imagine that it's more like like the total reserve will be affixed okay yeah so were you can think about it this is a small country right in order to like the country has his own basic a currency in order to like encourage people to immigrate to this country we auction out the Parliament seats and to like basically create the initial like demand for a user a man like for people to vote the immigrant and then as more and more people immigrate to the country there will be like more and more business like running in the country like the economy will be growing then the percentage of the auction of the Parliament seats will become less and less and less important than the system well I mean is there any other value of governance talking accepts taking yeah so basically there is also a state storage for example in any like like a smart contract system you need to like have a storage space for the for the states right so basically in order to basically let's say create a smart contract you actually need to have some carbons token to basically secure that storage say do you use rent or do you like locks I was a gangster basically we're sinking to more you sell like a rent type of model yeah so they just need to have some cameras talking on account and it gets deducted every time yeah yeah and how would you value that like because that sounds something that I should be paying in meter because yeah so basically that is still being worked out so like we want to like either for example you have to maintain enough covenants token we're like you have to also like sort of bidding on that as a further rent yeah so it's more like the ramyon gos yeah yeah I see yeah and like the part I'm like trying to figure out which probably requires a little bit more involved but like how much it goes like you actually have this like pretty interesting connectivity between meter tog meter tokens governess talkin C students like how much new got new meter tokens get issued and yeah like presumably so so okay let's say let's work for this example so meter price is under whatever is 10 kilowatt price yeah so because this burning in fact continuously remove things from the system but like the question I have is mostly around like I mean how much was this you burn right like it actually depends on how much surprise differences so basically like assuming for example right now the price drops right yeah there is not many people mining so the production is like minimal we're like negligible yes and then this thing will keep on removing currency from circulation so you have certainty that the liquidity goes down yeah there's so but for that that people need to actually because like if everybody thinks that right though the greedy goes down meter talking will go up why would they go bad on governance token instead of holding meter talkers because the price will go up and now that mechanism in the system okay yeah so we have a stability fund yeah so this is a more like a vennett a set of the of the doll so basically when price is high you can borrow from that like stability fine and when the price is low you can basically buy it back and like and basically like pay back the loan you borrowed from the from that fun mmm who are you in this case basically the governance token holders got me stuck in how Suzy does he use governor's token as a collateral or yeah yeah so basically you have to lock your governance token in order to get that long so what's the price for that or what's uh basically it's a Parata base no so let's say I have one governance talk and there's stability fee of you know hundred-meter yeah so how much can I borrow let's say the system have like 50 governance token like in circulation in total so each one will basically represents like two meter you can borrow from the system yeah so the stability fee is pretty much like kind of a back up back reserve of the governess token yeah yeah and also this is a basically the net asset on the balance sheet so the token actually you have support in term of the lowest value yeah yeah that's interesting but that so that over time goes down because over time well accumulate because this is just on keep on adding like basically funds into the system okay yeah yeah so this will add funds in the system if right now people because way because this you're exchanging meter token for governance right here you're exchanging government's talking for meter yeah so I mean like WS thing is like by some governments talking take out some meter by more governance talk if you want to leverage you can do that the basically here you need to lock up your governance token and also you'll lose your Jannetty to participate in the in record-keeping yeah alright so then going back you only do this when and will be profitable for you so that means when the price is high when the price of the meter you can sell it as a high price on the market yes sorry and then so if if the meter price is low now you need to return otherwise you will just lose your governance token and the governor Hogan will be permanent and then just will be cut unlocked removed from circulation right well why would you lose your garage token no basically will be locked and you basically you pay back the loan yeah no no but so you said you said if meter talking the price is down right you this is your opportunity for you to buy it back and pay back the loan right sure but by that but but why would no no but if you think that like this is the price will go up right why would you do that because like showing you hold to your token because like the whole point is that basically like for example you know the stabilizing there so there's certain certain stabilizing point equilibrium point yeah right so if you you think you're below right now yeah if you're below right now it's perfect time for you to buy because basically like you know the system will eventually go back sure yeah when is high is for you but that's what I'm saying like so if everybody wants to buy meter talking so nobody wants to buy governance talking right now nobody wants to return governance no nobody wants to get their loan back everybody just gets like holds their meter like there's no meter been burned right I'll say it again so if if meter price is down yeah it's down right yeah so let's assume we have like a bunch of people who have flown in this thing so governess tokens yeah like they they have meter right now yeah they will think that price will go up right yeah so basically because the the meter you can borrow only represents a fraction of the value of the government's program right so unless you want to completely give up your governance poka which essentially but you move it from circular gearing up you just when you lock it that means is removed from circulation sure yeah but you can always buy it back later yeah so that means eventually like a lot of I mean really you're just selling it that's what happens you selling it to the stability fund and you can buy it back that's a shame about it yeah but you can only basically selling it up to be amount yeah so the first price is like pretty much I mean you pretty much have the price set fixed between meter and governance oh no it's now fixed well it's I mean it's whatever like 101 over total supply now what do you mean by one over total sorry the number of meter instability fee no no this is just a net asset value net asset so let's think about like a company right yeah a company you have cash or installments future but the value of the company is the net asset value plus the future cash flow discounted cash flow of the company right so the governor is token value is higher than this like and that has a value yeah but but here you like I'm not just saying this this mechanics sets a price between governance and meter because I can sell my governance get some meter and I can pay meter and back get back governance token right let's see it again so so so you have the stability fund right yeah so I can take my one guy right yeah faith and get some number of meter talking yeah but this is just luck this is not your selling it yeah but I need to return the same number of meter right and get back one governance yeah I mean we can consider that like if nothing else happens with my good like if I cannot lose it for any other reason let's say for example right now on the on the auction this one clears that like let's say six meter yeah right the amount you can borrow from the stability fund is let's say like two meter so why would you give up this value it's not basically selling it you're just collateralizing and there's all the collateral is like but can can anybody else nobody else can get my gut one guv talking out of it right no only you can claim it that you can now trade it you say yeah yeah your cauterizing isn't getting any part of it okay yeah cool huh yeah I'll need to think about more I mean no token systems are hard because it's like a lot of it basically if you think about this is like for example if everyone wants to move out of the country that's just like any like country's right amen I mean yeah if nobody cares the price goes down that's kind of yeah like your thing I mean the question is is like you have you have some so basically what it does is like this create a Nash equilibrium in the system as long as let's say for example if just you and me believe in the system yeah then just exchange between us will need to be created if there are more people believe in the system more will be created but if just 12 us only the neatest supply will be created yeah all right cool yeah that's a that's on the high level how the system works yeah all right yeah all right cool thanks a lot for explaining it's really interesting I think - talking systems are always interesting just because there's a lot of more mechanics going on yeah all right thanks a lot check out the floats metre diameter dota oh yeah for more information yeah all right thank you thanks a lot","transcript_synced_at":"2026-11-04T04:28:42.592Z","segments":[{"start_seconds":3,"text":"hey everyone welcome to new whiteboard episode today was with Xiao Hong from meter we'll discuss how their platform","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=3s"},{"start_seconds":13,"text":"works do you want to start by introducing yourself and the project yeah sure so hi everyone my name is Xiao","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=13s"},{"start_seconds":20,"text":"Han Zhu I actually have an engineering background like for a while and then I","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=20s"},{"start_seconds":26,"text":"move to like investment finance so I used to run a VC fund cause the MT","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=26s"},{"start_seconds":34,"text":"capital we invest in Kryptos and blockchains that's back in 2016 that's how I got into the space and then while","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=34s"},{"start_seconds":42,"text":"investing in this project we've been just thinking like what's the evaluation how do we value these cryptocurrencies","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=42s"},{"start_seconds":49,"text":"what are the fundamental use cases so that's when we realized that we need to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=49s"},{"start_seconds":57,"text":"create a different type of infrastructure to really empower decentralized businesses so that's how","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=57s"},{"start_seconds":65,"text":"we started meter so basically on a high level meter the goal of the meter of the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=65s"},{"start_seconds":71,"text":"meter project is to create Alibaba web 3 what it means is that we want to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=71s"},{"start_seconds":78,"text":"basically standarized interconnect values and then settle them on blockchain quickly so fundamentally we do three","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=78s"},{"start_seconds":87,"text":"things one is that we create a universal unit account that's native for crypto","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=87s"},{"start_seconds":94,"text":"not linked to any fiat currencies but fundamentally it's economically stable in value secondly we basically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=94s"},{"start_seconds":103,"text":"redesigned the consensus and the game inside PR the economic game inside","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=103s"},{"start_seconds":110,"text":"crypto currencies to create a faster consensus approach and finally we","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=110s"},{"start_seconds":117,"text":"support inner communication with existing crypto currencies like Bitcoin in Syria and also in the future other","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=117s"},{"start_seconds":126,"text":"block chains like near for example maybe yeah oh yeah that's a high-level review yeah let's dive more how exactly it","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=126s"},{"start_seconds":136,"text":"works yeah sure so maybe let's start with the stable unit of account sure","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=136s"},{"start_seconds":142,"text":"yeah so basically if you look at all the crypto currency today for example like Bitcoin","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=142s"},{"start_seconds":149,"text":"well when Bitcoin was designed I think Satoshi in one of his like emails France","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=149s"},{"start_seconds":156,"text":"can comment on that basically it wasn't sure how to design the the monetary policy to be like like to be like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=156s"},{"start_seconds":165,"text":"basically and she knew so that's why like he put in like the 21 million hard copy in there which made Bitcoin that","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=165s"},{"start_seconds":172,"text":"excellent a vehicle for investment because of the limited supply the richest supply but for any economy when","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=172s"},{"start_seconds":181,"text":"the system grows you run into a deflationary issue and in a deflationary","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=181s"},{"start_seconds":188,"text":"economy it actually discourages production and investment so let's say","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=188s"},{"start_seconds":195,"text":"if I'm like a baker so like today I for example purchase the flour","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=195s"},{"start_seconds":202,"text":"purchase sugar with some currencies I want to make cake and make a make a cake of several cakes and sell them tomorrow","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=202s"},{"start_seconds":211,"text":"to exchange for more currencies but in a deflationary economy it is possible that the next day when you sell it because it","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=211s"},{"start_seconds":220,"text":"takes time for you to create the pay create the cake the the currency itself already rise in value and the amount of","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=220s"},{"start_seconds":228,"text":"currency you can exchange for is even less and the ingredients you you pay so which make it doesn't make sense for","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=228s"},{"start_seconds":236,"text":"people to do any long term investment or production yeah you cannot take a loan to buy these ingredients of better to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=236s"},{"start_seconds":242,"text":"just like held your currency just asleep hodo how do we yeah yeah so basically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=242s"},{"start_seconds":250,"text":"that's a and also basically if you look at any financial assets on concern for","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=250s"},{"start_seconds":257,"text":"example because of this issue over the long run you will see your financial products or","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=257s"},{"start_seconds":264,"text":"like financial assets drop in value in term of this area so when the buyers see these are kind of issues why would they","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=264s"},{"start_seconds":272,"text":"hold your financial products right I mean why not just hold the the platform currency so in that case you are","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=272s"},{"start_seconds":279,"text":"essentially competing with your own ecosystem so that's a that's the same we would like to change but in order to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=279s"},{"start_seconds":289,"text":"create something like that we need to basically create a like a model that","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=289s"},{"start_seconds":298,"text":"fundamentally link the cryptocurrency creation with physical values in the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=298s"},{"start_seconds":306,"text":"physical world so basically you can imagine like we have two world right so we have the physical world and we have","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=306s"},{"start_seconds":315,"text":"the crypto world so basically physical world export like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=315s"},{"start_seconds":324,"text":"computing and electricity to the crypto world and the crypto world export","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=324s"},{"start_seconds":333,"text":"financial products basically crypto currencies oh yeah I mean it doesn't","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=333s"},{"start_seconds":340,"text":"expert exchanges value yeah interacting between two economies and there's a favorite","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=340s"},{"start_seconds":348,"text":"famous theorem in international finance called the impossible Trinity basic a like there's a fixed exchange rate","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=348s"},{"start_seconds":361,"text":"there's a free flow of capital","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=361s"},{"start_seconds":368,"text":"and there's independent monetary policy","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=368s"},{"start_seconds":381,"text":"basically these three things cannot coexist at the same time so for example there are like cup of like people and","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=381s"},{"start_seconds":391,"text":"projects creating stable coins right so like I think the makers yeah basically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=391s"},{"start_seconds":397,"text":"like mana stable like a sea Brett he had like a pretty famous article that","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=397s"},{"start_seconds":404,"text":"categorized the stable coins into three categories three categories there is a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=404s"},{"start_seconds":410,"text":"basically there's a crypto back there is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=410s"},{"start_seconds":418,"text":"a Fiat back and there's another one you probably call it grows back basically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=418s"},{"start_seconds":426,"text":"this is an algorithm based yeah stable points so basically we feel there are","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=426s"},{"start_seconds":436,"text":"centralization issues in all of these approaches so for example first for all","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=436s"},{"start_seconds":443,"text":"the grows back like cryptocurrency I mean like a stable coins we don't feel any of them a valid so far so we can","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=443s"},{"start_seconds":452,"text":"ignore this case basically for the other two approaches like fiat value this yeah it's some Bank somebody since in the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=452s"},{"start_seconds":460,"text":"back yes somewhere I had to sit on the pan for the crypto back there actually although they they seem to be like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=460s"},{"start_seconds":468,"text":"decentralized but there is a centralized to Oracle in there and the Oracle is actually one of the single point of failure in the system so there is a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=468s"},{"start_seconds":477,"text":"project called Phoenix right so just so like last week because one of the round data feeds in their Oracle they created","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=477s"},{"start_seconds":485,"text":"like 37 millions and study this area which translates to like seven billion","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=485s"},{"start_seconds":491,"text":"dollar in like paper value so you can see like if you build a financial system on top of like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=491s"},{"start_seconds":499,"text":"certain data feed there's a potential risk in a system and though you're like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=499s"},{"start_seconds":506,"text":"for example even your Oracle system is designed very strong very robust but still the data feed itself there may be","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=506s"},{"start_seconds":513,"text":"centralization issues and also maybe like failure issues as well do you think it's possible to build for specifically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=513s"},{"start_seconds":521,"text":"price feeds to build a decentralized oracle like or like games theoretically balanced oracle it's it's difficult","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=521s"},{"start_seconds":528,"text":"because the the in sense the incentive doesn't match so for example like the acid running on a platform maybe you're","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=528s"},{"start_seconds":538,"text":"like in hundreds of millions or like billions but the incentive typically provides in now like Oracle system you think about like an Oracle systems a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=538s"},{"start_seconds":546,"text":"market cap right so it may be like very disproportional to the value it carries on the honor system and also like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=546s"},{"start_seconds":554,"text":"because the data feed has to be like on all the time in order for the system to function properly so that's a very challenging","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=554s"},{"start_seconds":561,"text":"problem because for example none of the software we can guarantee hundred-percent like reliability right even the software","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=561s"},{"start_seconds":569,"text":"is reliable the hower may have issues so if a public chain running into this issue and yeah maybe it will just stop","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=569s"},{"start_seconds":577,"text":"like processing transaction for a couple hours or something but if data feed is wrong like it could potentially collapse","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=577s"},{"start_seconds":585,"text":"the entire system so fundamentally we feel these type of approach is more like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=585s"},{"start_seconds":592,"text":"enterprise software level security not store value levels of security but let's talk about like a store value level of","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=592s"},{"start_seconds":600,"text":"security how this can be done right so basically would just now we mentioned the impossible Trinity please say it based on this in order to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=600s"},{"start_seconds":608,"text":"have a fixed exchange with fiat currency there's only two ways to do it one is the you have the Chinese approach","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=608s"},{"start_seconds":616,"text":"you do not allow free flow of capital so which no one likes right or you have the Hong Kong approach they say K they have","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=616s"},{"start_seconds":624,"text":"a hundred percent reserve in the field currency they pack two in a single pool managed by like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=624s"},{"start_seconds":631,"text":"and what conversation yeah so and they give up their own monetary policy so in that case they can keep the pack but","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=631s"},{"start_seconds":640,"text":"fundamentally like these are all like centralized approach right so how do we solve this in a decentralized","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=640s"},{"start_seconds":647,"text":"environment so the approach a meter is taking as instead of trying to pack with any fiat currency we give up on this","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=647s"},{"start_seconds":656,"text":"edge and take the other two edges so basically we're trying to create a basically essentially a new currency","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=656s"},{"start_seconds":663,"text":"that's native in the crypto world but fundamentally it's impossible to cheat and economic economically is stable so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=663s"},{"start_seconds":672,"text":"how it works is basically just now we talked about this two worlds right if you look at the two rows the only link","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=672s"},{"start_seconds":681,"text":"between them is the computing and the electricity which is in the proof-of-work world means the overworked","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=681s"},{"start_seconds":689,"text":"mining so if you look at the economics for the miners so basically they have the block reward","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=689s"},{"start_seconds":700,"text":"they have the transaction fees so all of these are virtual and on the car side","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=700s"},{"start_seconds":708,"text":"they have capex and OPEX so in a highly","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=708s"},{"start_seconds":717,"text":"competitive environment like proof-of-work mining at the end of day only OPEX matters so basically that's a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=717s"},{"start_seconds":725,"text":"electricity call see essentially so for them basically like you can see like all the Bitcoin miners always tracing the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=725s"},{"start_seconds":733,"text":"lowest electricity price at lowest exit yeah yeah it's okay to lower their OPEX","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=733s"},{"start_seconds":740,"text":"essentially so what we do differently from Bitcoin is Bitcoin because the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=740s"},{"start_seconds":748,"text":"supply is set fixed so the only response Bitcoin can have to the to the supply","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=748s"},{"start_seconds":756,"text":"and demand is basically the price like basically the price changes based on supply and demand so for what we are","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=756s"},{"start_seconds":764,"text":"we have a fixed production cost in the system so in order to create one meter so the cost of production for proven","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=764s"},{"start_seconds":773,"text":"work mining is always around ten kilowatt hour of electricity so basically when we set a like a fixed","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=773s"},{"start_seconds":781,"text":"production cost the response is essentially the quantity of the of the token so the fire the flash power is a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=781s"},{"start_seconds":788,"text":"more exactly exactly so basically from the miners perspective they will only create the coin when it","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=788s"},{"start_seconds":797,"text":"economically makes sense for that which means though there's enough margin for them to do the footwork mining and that","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=797s"},{"start_seconds":804,"text":"profit chasing behavior will naturally create a feedback to the system he essentially creates a discipline to a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=804s"},{"start_seconds":811,"text":"monetary policy in the system so basically like over the long run it will","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=811s"},{"start_seconds":818,"text":"settle at like basically essentially pact to the competitive price of electricity yeah yeah and we actually","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=818s"},{"start_seconds":827,"text":"have data like show you miss basically if you look at the competitive price of","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=827s"},{"start_seconds":833,"text":"electricity so we're and then we have data like this so this is from 1960s","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=833s"},{"start_seconds":843,"text":"let's say there's 2013 so basically this","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=843s"},{"start_seconds":850,"text":"is the measure by US dollar and this line it's basically the real price which","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=850s"},{"start_seconds":859,"text":"means suggested for inflation so basically over these period the crisis is relative stable the purchasing power","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=859s"},{"start_seconds":866,"text":"of electricity is actually more stable than any fiat currencies in the world it is a stable across the world basically this is a competitive price of","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=866s"},{"start_seconds":875,"text":"electricity legs in the global competition yeah and actually if you look at the electricity price across the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=875s"},{"start_seconds":883,"text":"globe actually us as one of the lowest country in the world yeah so that's on the high level how we","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=883s"},{"start_seconds":892,"text":"create that like unit of account but once you do this that involves some changes in the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=892s"},{"start_seconds":900,"text":"consensus because when you design the economics and games like this the hashing power in the system is no longer","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=900s"},{"start_seconds":908,"text":"gonna be stable so there you cannot like protect the system just through the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=908s"},{"start_seconds":916,"text":"hashing power itself so basically that's what we do in our consensus innovation yeah so before it go to consensus just","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=916s"},{"start_seconds":924,"text":"for me to understand yeah right so let's say you have it's a 10 kilowatt right is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=924s"},{"start_seconds":930,"text":"one mirror and we planning to use like a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=930s"},{"start_seconds":937,"text":"Bitcoin so mining algorithm when we launch so it's like pretty clear like no no no no existed too and there's always","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=937s"},{"start_seconds":947,"text":"the opportunity calls for the miners so even you've got free free electricity you always have to look at whether I","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=947s"},{"start_seconds":954,"text":"should mind Bitcoin or my meter and well you will only do it when it economically makes sense to you so but let's just","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=954s"},{"start_seconds":962,"text":"let's just discuss an edge case right let's say the price of meter goes below","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=962s"},{"start_seconds":969,"text":"competitive price of 10 kilowatt right yeah so let's say this this is right now","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=969s"},{"start_seconds":975,"text":"so actually the way to look at it is because there need to be enough margin","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=975s"},{"start_seconds":982,"text":"for the Bitcoin miners so the price where it settles that we believe is gonna be a one to two dollar range for","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=982s"},{"start_seconds":989,"text":"this for this because even for example like it's six cents like for the competitive electricity price which","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=989s"},{"start_seconds":998,"text":"translates to 60 cents right but for a normal like operation for there's to be enough margins for the miners you will","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=998s"},{"start_seconds":1006,"text":"see the price settles between 1 to $2 just because like they want a margin yeah otherwise there won't be a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1006s"},{"start_seconds":1013,"text":"sustainable so but yeah just for me to understand so let's say price of meter goes below for whatever reason yeah how","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1013s"},{"start_seconds":1021,"text":"does it recover we have another we have another economy design to basically consistently like removing currency from","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1021s"},{"start_seconds":1030,"text":"circulation yeah okay which are related to the Consensus tomahto then let's go to the Consensus yeah so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1030s"},{"start_seconds":1039,"text":"basically like if you look at all the existing cryptocurrencies you know there's one interesting saying like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1039s"},{"start_seconds":1046,"text":"people are mixing currency creation with record-keeping so which is perfect when","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1046s"},{"start_seconds":1054,"text":"like Satoshi design is because when you first design like a game like this you need to make it simple and you need to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1054s"},{"start_seconds":1061,"text":"have like involved party as little as possible but when the system got mature you'll notice this is actually","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1061s"},{"start_seconds":1069,"text":"completely two different consensus I mean the record-keeping and currency creation basically record-keeping what","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1069s"},{"start_seconds":1076,"text":"you trying to provide prevent as the double spending part so that is actually directly observable to all the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1076s"},{"start_seconds":1085,"text":"participants in an hour you just need to make sure the information is hourly propagated so that doesn't require a lot","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1085s"},{"start_seconds":1092,"text":"of energy but there's another consensus which is the economic consensus plus how much the newly-created coins are worse","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1092s"},{"start_seconds":1100,"text":"how much new value has been added to the system that is implicit and obviously that requires a lot more energy to reach","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1100s"},{"start_seconds":1109,"text":"that consensus so basically in a proof of work system it's a miners that reaching that consensus but in the proof of stake","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1109s"},{"start_seconds":1118,"text":"system there's actually people only care about the first recordkeeping consensus there's not much consensus like the the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1118s"},{"start_seconds":1127,"text":"economic part so typically like people will just say like we have like certain inflation rate and if you participate in","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1127s"},{"start_seconds":1135,"text":"staking you will not be diluted if you don't then you'll be cut alluded in the system right so that's a that's a proof","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1135s"},{"start_seconds":1144,"text":"of stake so a meter basically we separate the two consensus explicitly so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1144s"},{"start_seconds":1151,"text":"we use the proof of work for currency creation for notional time and one of the sources for randomness and the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1151s"},{"start_seconds":1160,"text":"record-keeping is done by basically proof of stake and we have two tokens as well the proof","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1160s"},{"start_seconds":1168,"text":"of stake token we call it governance token so basically you have to stake that to participate in the and a proof","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1168s"},{"start_seconds":1176,"text":"of stake record-keeping process so in our system we have a like a hybrid chain","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1176s"},{"start_seconds":1184,"text":"approach so so this is let's say this is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1184s"},{"start_seconds":1199,"text":"a proof of stake chain so actually all the transaction records are capped here and then we have like a proof-of-work","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1199s"},{"start_seconds":1207,"text":"chain so kind of checkpoint the blue snake chain yeah exactly basically here the for example found the proof of stake side this is three to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1207s"},{"start_seconds":1215,"text":"five seconds per block here this is like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1215s"},{"start_seconds":1219,"text":"one minute on average so basically pure","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1219s"},{"start_seconds":1228,"text":"Article II these key frames this is what you park right like they will merge with","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1228s"},{"start_seconds":1236,"text":"each other and cross reference each other put the Merkel rows on each other but basically all the proof of work chain","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1236s"},{"start_seconds":1244,"text":"there is no transaction record down there there is just basically like solutions for the puzzle and the difficulty like basically you calculate","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1244s"},{"start_seconds":1253,"text":"a bunch of solutions to the puzzle and at the end of the epoch you submit it to the proof of stake side competitively","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1253s"},{"start_seconds":1261,"text":"basically trying to claim the the reverse for this chain and basically prove a stake side will look at which","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1261s"},{"start_seconds":1268,"text":"chain is longer so basically we have a certain threshold let's say each epoch target is like 60 minutes right so let's","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1268s"},{"start_seconds":1279,"text":"say 60 minutes and each of you prefer work block on average is one minute so whenever is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1279s"},{"start_seconds":1285,"text":"greater than 60 like here the approval steak side knows this epoch is finishing","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1285s"},{"start_seconds":1293,"text":"and we need to like basically change to the next epoch so at this stage basically like all the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1293s"},{"start_seconds":1301,"text":"proof of stake validators will look at which chains longer and both for the longest chain and use the nonce on the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1301s"},{"start_seconds":1309,"text":"longest chain as one of the seed for selecting the the next yeah yeah so basically on the on the proof of stake","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1309s"},{"start_seconds":1317,"text":"side we run hot stuff and we have we're targeting to have a like a probably like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1317s"},{"start_seconds":1325,"text":"more than 50 to about 100 validators in a committee and the pool can be much bigger because we can randomly pick from","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1325s"},{"start_seconds":1333,"text":"the from the pool for the committee yeah so but like in theory you can have like you know there's work here a lot of","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1333s"},{"start_seconds":1342,"text":"forks for example yeah but whoever is the longest will win the race Chloe will like but how like this is pretty fast right so this may not","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1342s"},{"start_seconds":1351,"text":"propagate in time even if I have the longest fork yeah so whoever gets the approval on the proof of stake sack","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1351s"},{"start_seconds":1360,"text":"basically the proposer on the Rufus egg side will just say hey this is the longest chance I see do you guys agree","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1360s"},{"start_seconds":1367,"text":"and if I got more than 2/3 people voting on this is the longest chain they see","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1367s"},{"start_seconds":1374,"text":"then basically this is chase is chosen and if you couldn't reach like an agreement we move to the next like a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1374s"},{"start_seconds":1382,"text":"proof of stake proposer we're actually changing like the leader for every block to profess that we just switch to next","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1382s"},{"start_seconds":1391,"text":"block or would you just do a few stick you say change oh it's like because how self it's like you change is related with chief so basically yeah it's more","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1391s"},{"start_seconds":1400,"text":"like a view change okay yeah so I'm just well so there's obvious thing for for as one of the miners I should just DDoS all","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1400s"},{"start_seconds":1408,"text":"the other miners so they not be able to send the sense so basically actually like like the way","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1408s"},{"start_seconds":1417,"text":"we're looking at is in the future these will be mostly run by mining pools as well so like mining pools all have like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1417s"},{"start_seconds":1424,"text":"the DDoS like in Canada we also I mean because my name polls recently have a lot of sayings they are looking","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1424s"},{"start_seconds":1432,"text":"as well for example there's like there's a hidden block attack that they they","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1432s"},{"start_seconds":1439,"text":"they are really concerned but they couldn't solve the problem without part of protocol level support we're gonna","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1439s"},{"start_seconds":1446,"text":"support that to be more family to the mining pools yeah but like you can also like have your own pool mining as well","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1446s"},{"start_seconds":1455,"text":"yeah and also on the proof of stakes at all of the validator were run we'll be","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1455s"},{"start_seconds":1462,"text":"listening to the pre o W like Network as well so basically they're running like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1462s"},{"start_seconds":1468,"text":"sort of like a foo note on POWs face yeah I mean my yeah just my main point is like let's say you know there's a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1468s"},{"start_seconds":1477,"text":"bunch of validate like Bruce take validators if some of them are inside one pool like this pool will be preferred just because they'll get the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1477s"},{"start_seconds":1484,"text":"info faster like they produce the block in the first place so it's all just propagate and this is you said this is three seconds right yeah so like how","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1484s"},{"start_seconds":1492,"text":"long is your like this is one minute yeah so what is the propagation time for blocks because o because everything is empty block it's pretty fast yeah it's","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1492s"},{"start_seconds":1500,"text":"very minimal the propagation time how does the proof of stake validators get rewarded then Oh","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1500s"},{"start_seconds":1507,"text":"so that's a like how the to token system works basically we have like unchanged","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1507s"},{"start_seconds":1514,"text":"options for the for the governance token so basically let's say today like I have","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1514s"},{"start_seconds":1521,"text":"three governance token but the government's talking is the proof of stake token right like released so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1521s"},{"start_seconds":1529,"text":"basically in order to like compete for this three tokens like people have to bid with the currency token let's say I","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1529s"},{"start_seconds":1538,"text":"put in like five currency token to the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1538s"},{"start_seconds":1547,"text":"for like competing for this governance token right so after I win the reward I mean after I win the dumbness token","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1547s"},{"start_seconds":1556,"text":"this like basic a five currency token belongs to the system now right so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1556s"},{"start_seconds":1564,"text":"basically what we do is a portion of them will be distributed to into a liquor reserve let's say this two","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1564s"},{"start_seconds":1571,"text":"goes to like a reserve pool and then goes back to all the prophets like validators as a reward as bloc rework","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1571s"},{"start_seconds":1579,"text":"gradually release block-by-block basis and then a portion of them will be where","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1579s"},{"start_seconds":1586,"text":"we have something called like a stability fund well put into that fund is also a reserve system and the rest","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1586s"},{"start_seconds":1594,"text":"will be burned so basically the burning will create like continues in fact on","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1594s"},{"start_seconds":1600,"text":"removing currency from circulation so but why why would I love to compete for","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1600s"},{"start_seconds":1608,"text":"this why would I participate in auction basically that's the governance right and record-keeping right of the system","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1608s"},{"start_seconds":1617,"text":"so think about like this is the the banking system of the entire financial system right well this basically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1617s"},{"start_seconds":1625,"text":"represents the governance rights in the banking system and this token can actually extract values from the from","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1625s"},{"start_seconds":1633,"text":"the system for example from transaction fees from like state storage and also","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1633s"},{"start_seconds":1640,"text":"from for example the daily auctions okay so this is this new tokens it generated Perry Park this is like an inflation of","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1640s"},{"start_seconds":1649,"text":"comments like this is a property like more like a day or like a week yeah for some period of time yeah so this is like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1649s"},{"start_seconds":1656,"text":"just inflates Chiron stalkin yeah so all the stake here's get inflated by this amount right yeah that's right yeah and","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1656s"},{"start_seconds":1663,"text":"then they they are obligated to participate in the auction oh you are now the obligated to participate whoever","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1663s"},{"start_seconds":1670,"text":"wants the governance token this one is basically like a fixed supply curve so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1670s"},{"start_seconds":1678,"text":"you can imagine the governor spoken is the Bitcoin and the currency token as the energy is recourse the energy that","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1678s"},{"start_seconds":1686,"text":"you burnt when you mind the Bitcoin and we use that as a unit of measurement in the system","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1686s"},{"start_seconds":1695,"text":"all right yeah I'm just I'm just trying to think what is the use cases Oh like who as a wine of this validators what is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1695s"},{"start_seconds":1703,"text":"it my goal here like so if I have more governance talking straight you will be earning more of these fees I will be or","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1703s"},{"start_seconds":1711,"text":"earning more feet like I'll have more seats in the hot stuff consensus or how does it work basically I mean like so like you have","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1711s"},{"start_seconds":1718,"text":"like hundred let's say about validators yeah so so I am like one of those guys","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1718s"},{"start_seconds":1727,"text":"who has more staking yeah well I get more you work from just more transaction fees for this block know if you're not doing 100 yeah won't even get","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1727s"},{"start_seconds":1735,"text":"transactions but if I I am in 100 like yeah the more like the Morris takes a more I get there and it's proportional to the sound ASIC it what we do is like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1735s"},{"start_seconds":1744,"text":"we because now we have like a unit of account in the system we actually know","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1744s"},{"start_seconds":1752,"text":"how much when you need to have to cover your bases for example each validator they need to spend probably like ten","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1752s"},{"start_seconds":1760,"text":"thousand dollars per year to maintain their machines so basically we can say like first you will get this ten","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1760s"},{"start_seconds":1768,"text":"thousand a meter and then like anything about that will be like distributed","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1768s"},{"start_seconds":1775,"text":"proportionally okay so you have like some minimo yeah","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1775s"},{"start_seconds":1782,"text":"so basically like to cover your your eggs may say Q's expense so where's that meat are coming from or it's from like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1782s"},{"start_seconds":1790,"text":"but for example initially let's say there's very little transactions okay so the transaction fee is sort of zero yeah yeah then it's coming from the daily","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1790s"},{"start_seconds":1799,"text":"auction I mean not daily auction but time interval adoption rights when I tell the government okay so you sell","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1799s"},{"start_seconds":1808,"text":"let's say sell eggs governor's talking right yeah people bed all right yeah I'm","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1808s"},{"start_seconds":1815,"text":"assuming that only top bed is being taken up or they just pretty much basic a like go all the bids received on that","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1815s"},{"start_seconds":1824,"text":"day get look at the same price let's say for example you have like three governance tokens right today","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1824s"},{"start_seconds":1831,"text":"you've collected five meter tokens okay so each one clears that size 3 over 5","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1831s"},{"start_seconds":1837,"text":"yeah there's just like like that chuckling yeah single prize the auction yeah okay and","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1837s"},{"start_seconds":1844,"text":"then okay so so you collect this meter","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1844s"},{"start_seconds":1850,"text":"tokens out of it so it's possible that you'll get less just because like right now people also don't get the governess","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1850s"},{"start_seconds":1859,"text":"tokens right but basically like because","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1859s"},{"start_seconds":1864,"text":"the stinking token also like I mean it's maintaining the records right yeah and","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1864s"},{"start_seconds":1872,"text":"also have a fake supply so this is more like a store value poking in the system wait when you say a fixed supply so the curve of governance","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1872s"},{"start_seconds":1881,"text":"talking it's like this it'll be less and less you can imagine that it's more like like the total reserve will be affixed","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1881s"},{"start_seconds":1887,"text":"okay yeah so were you can think about it this is a small country right in order","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1887s"},{"start_seconds":1893,"text":"to like the country has his own basic a currency in order to like encourage people to immigrate to this country we","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1893s"},{"start_seconds":1903,"text":"auction out the Parliament seats and to like basically create the initial like demand for a user a man like for people","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1903s"},{"start_seconds":1911,"text":"to vote the immigrant and then as more and more people immigrate to the country there will be like more and more business like running in the country","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1911s"},{"start_seconds":1920,"text":"like the economy will be growing then the percentage of the auction of the Parliament seats will become less and","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1920s"},{"start_seconds":1929,"text":"less and less important than the system well I mean is there any other value of governance talking accepts taking yeah","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1929s"},{"start_seconds":1936,"text":"so basically there is also a state storage for example in any like like a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1936s"},{"start_seconds":1943,"text":"smart contract system you need to like have a storage space for the for the states right so basically in order to","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1943s"},{"start_seconds":1952,"text":"basically let's say create a smart contract you actually need to have some carbons token to basically secure that","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1952s"},{"start_seconds":1961,"text":"storage say do you use rent or do you like locks I was a gangster basically we're sinking to more you sell","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1961s"},{"start_seconds":1969,"text":"like a rent type of model yeah so they just need to have some cameras talking on account and it gets deducted every","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1969s"},{"start_seconds":1976,"text":"time yeah yeah and how would you value that like because that sounds something that I","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1976s"},{"start_seconds":1983,"text":"should be paying in meter because yeah so basically that is still being worked out so like we want to like either for","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1983s"},{"start_seconds":1992,"text":"example you have to maintain enough covenants token we're like you have to also like sort of bidding on that as a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=1992s"},{"start_seconds":2000,"text":"further rent yeah so it's more like the ramyon gos yeah yeah I see yeah and like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2000s"},{"start_seconds":2010,"text":"the part I'm like trying to figure out which probably requires a little bit more involved but like how much it goes like you actually have this like pretty","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2010s"},{"start_seconds":2018,"text":"interesting connectivity between meter tog meter tokens governess talkin C students like how much new got new meter","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2018s"},{"start_seconds":2027,"text":"tokens get issued and yeah like presumably so so okay let's say let's","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2027s"},{"start_seconds":2035,"text":"work for this example so meter price is under whatever is 10 kilowatt price yeah so because this burning in fact","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2035s"},{"start_seconds":2043,"text":"continuously remove things from the system but like the question I have is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2043s"},{"start_seconds":2052,"text":"mostly around like I mean how much was this you burn right like it actually depends on how much surprise differences so basically like assuming for example","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2052s"},{"start_seconds":2061,"text":"right now the price drops right yeah there is not many people mining so the production is like minimal we're like negligible yes and then this","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2061s"},{"start_seconds":2070,"text":"thing will keep on removing currency from circulation so you have certainty that the liquidity goes down yeah","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2070s"},{"start_seconds":2078,"text":"there's so but for that that people need to actually because like if everybody thinks that right though the greedy goes down meter talking will go up why would","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2078s"},{"start_seconds":2085,"text":"they go bad on governance token instead of holding meter talkers because the price will go up and now that mechanism in the system okay yeah so we have a","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2085s"},{"start_seconds":2094,"text":"stability fund yeah so this is a more like a vennett a set of the of the doll so basically when price is high you can","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2094s"},{"start_seconds":2104,"text":"borrow from that like stability fine and when the price is low you can basically buy it back and like and","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2104s"},{"start_seconds":2113,"text":"basically like pay back the loan you borrowed from the from that fun mmm","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2113s"},{"start_seconds":2121,"text":"who are you in this case basically the governance token holders got me stuck in how Suzy does he use governor's token as a collateral or yeah yeah so basically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2121s"},{"start_seconds":2131,"text":"you have to lock your governance token in order to get that long so what's the price for that or what's uh basically","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2131s"},{"start_seconds":2138,"text":"it's a Parata base no so let's say I have one governance talk and there's stability fee of you know hundred-meter","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2138s"},{"start_seconds":2144,"text":"yeah so how much can I borrow let's say the system have like 50 governance token","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2144s"},{"start_seconds":2151,"text":"like in circulation in total so each one will basically represents like two meter","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2151s"},{"start_seconds":2158,"text":"you can borrow from the system yeah so the stability fee is pretty much like kind of a back up back reserve of the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2158s"},{"start_seconds":2167,"text":"governess token yeah yeah and also this is a basically the net asset on the balance sheet so the token actually you","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2167s"},{"start_seconds":2176,"text":"have support in term of the lowest value yeah yeah that's interesting but that so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2176s"},{"start_seconds":2184,"text":"that over time goes down because over time well accumulate because this is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2184s"},{"start_seconds":2192,"text":"just on keep on adding like basically funds into the system okay yeah yeah so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2192s"},{"start_seconds":2201,"text":"this will add funds in the system if right now people because way because this you're exchanging meter token for","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2201s"},{"start_seconds":2210,"text":"governance right here you're exchanging government's talking for meter yeah so I mean like WS thing is like by some","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2210s"},{"start_seconds":2219,"text":"governments talking take out some meter by more governance talk if you want to leverage you can do that the basically here you need to lock up your governance","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2219s"},{"start_seconds":2228,"text":"token and also you'll lose your Jannetty to participate in the in record-keeping yeah alright so then","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2228s"},{"start_seconds":2236,"text":"going back you only do this when and will be profitable for you so that means when the price is high","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2236s"},{"start_seconds":2242,"text":"when the price of the meter you can sell it as a high price on the market yes","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2242s"},{"start_seconds":2252,"text":"sorry and then so if if the meter price","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2252s"},{"start_seconds":2259,"text":"is low now you need to return otherwise you will just lose your governance token and the governor Hogan will be permanent","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2259s"},{"start_seconds":2268,"text":"and then just will be cut unlocked removed from circulation right well why would you lose your garage token no basically will be locked and you","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2268s"},{"start_seconds":2276,"text":"basically you pay back the loan yeah no no but so you said you said if meter talking the price is down right you this","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2276s"},{"start_seconds":2286,"text":"is your opportunity for you to buy it back and pay back the loan right","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2286s"},{"start_seconds":2291,"text":"sure but by that but but why would no no but if you think that like this is the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2291s"},{"start_seconds":2299,"text":"price will go up right why would you do that because like showing you hold to your token because like the whole point","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2299s"},{"start_seconds":2307,"text":"is that basically like for example you know the stabilizing there so there's certain certain stabilizing point","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2307s"},{"start_seconds":2313,"text":"equilibrium point yeah right so if you you think you're below right now yeah if you're below right now it's perfect time for you to buy because basically like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2313s"},{"start_seconds":2322,"text":"you know the system will eventually go back sure yeah when is high is for you but that's what I'm saying like so if","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2322s"},{"start_seconds":2329,"text":"everybody wants to buy meter talking so nobody wants to buy governance talking right now nobody wants to return governance no nobody wants to get their","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2329s"},{"start_seconds":2337,"text":"loan back everybody just gets like holds their meter like there's no meter been","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2337s"},{"start_seconds":2344,"text":"burned right I'll say it again so if if meter price is down yeah it's down right","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2344s"},{"start_seconds":2355,"text":"yeah so let's assume we have like a bunch of people who have flown in this thing so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2355s"},{"start_seconds":2363,"text":"governess tokens yeah like they they have meter right now yeah they will think that price will go up right yeah","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2363s"},{"start_seconds":2372,"text":"so basically because the the meter you can borrow only represents a fraction of the value of the government's program right so unless you want to completely","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2372s"},{"start_seconds":2380,"text":"give up your governance poka which essentially but you move it from circular gearing up you just when you lock it","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2380s"},{"start_seconds":2387,"text":"that means is removed from circulation sure yeah but you can always buy it back later yeah so that means eventually like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2387s"},{"start_seconds":2396,"text":"a lot of I mean really you're just selling it that's what happens you selling it to the stability fund and you can buy it back that's a shame about it","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2396s"},{"start_seconds":2405,"text":"yeah but you can only basically selling it up to be amount yeah so the first","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2405s"},{"start_seconds":2411,"text":"price is like pretty much I mean you pretty much have the price set fixed between meter and governance","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2411s"},{"start_seconds":2420,"text":"oh no it's now fixed well it's I mean it's whatever like 101 over total supply now what do you mean by one over total","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2420s"},{"start_seconds":2428,"text":"sorry the number of meter instability fee no no this is just a net asset value","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2428s"},{"start_seconds":2434,"text":"net asset so let's think about like a company right yeah a company you have cash or installments future but the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2434s"},{"start_seconds":2443,"text":"value of the company is the net asset value plus the future cash flow discounted cash flow of the company right so the governor is token value is","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2443s"},{"start_seconds":2452,"text":"higher than this like and that has a value yeah but but here you like I'm not just saying this","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2452s"},{"start_seconds":2460,"text":"this mechanics sets a price between governance and meter because I can sell my governance get some meter and I can","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2460s"},{"start_seconds":2467,"text":"pay meter and back get back governance token right let's see it again so so so you have the stability fund","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2467s"},{"start_seconds":2477,"text":"right yeah so I can take my one guy right yeah faith and get some number of meter talking yeah but this is just luck","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2477s"},{"start_seconds":2485,"text":"this is not your selling it yeah but I need to return the same number of meter right and get back one governance yeah I mean we can consider that like if","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2485s"},{"start_seconds":2494,"text":"nothing else happens with my good like if I cannot lose it for any other reason let's say for example right now on the on the auction this one clears that like","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2494s"},{"start_seconds":2503,"text":"let's say six meter yeah right the amount you can borrow from the stability","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2503s"},{"start_seconds":2508,"text":"fund is let's say like two meter so why would you give up this value it's not","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2508s"},{"start_seconds":2516,"text":"basically selling it you're just collateralizing and there's all the collateral is like but can can anybody","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2516s"},{"start_seconds":2524,"text":"else nobody else can get my gut one guv talking out of it right no only you can claim it that you can","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2524s"},{"start_seconds":2531,"text":"now trade it you say yeah yeah your cauterizing isn't getting any part of it okay yeah cool huh yeah","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2531s"},{"start_seconds":2541,"text":"I'll need to think about more I mean no token systems are hard because it's like a lot of it basically if you think about this is like for example if everyone","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2541s"},{"start_seconds":2551,"text":"wants to move out of the country that's just like any like country's right amen I mean yeah if nobody cares","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2551s"},{"start_seconds":2560,"text":"the price goes down that's kind of yeah like your thing I mean the question is is like you have you have some so","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2560s"},{"start_seconds":2566,"text":"basically what it does is like this create a Nash equilibrium in the system as long as let's say for example if just","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2566s"},{"start_seconds":2575,"text":"you and me believe in the system yeah then just exchange between us will need to be created if there are more people","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2575s"},{"start_seconds":2583,"text":"believe in the system more will be created but if just 12 us only the","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2583s"},{"start_seconds":2588,"text":"neatest supply will be created yeah all right cool","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2588s"},{"start_seconds":2597,"text":"yeah that's a that's on the high level how the system works yeah all right yeah all right cool thanks a lot for","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2597s"},{"start_seconds":2606,"text":"explaining it's really interesting I think - talking systems are always interesting just because there's a lot of more mechanics going on yeah all","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2606s"},{"start_seconds":2615,"text":"right thanks a lot check out the floats metre diameter dota oh yeah for more information yeah all right thank you","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2615s"},{"start_seconds":2624,"text":"thanks a lot","url":"https://www.youtube.com/watch?v=7-4UNSyoK9M&t=2624s"}],"youtube_url":"https://youtube.com/watch?v=7-4UNSyoK9M","url":"https://near-pedia.xyz/videos/7-4UNSyoK9M"}