Summary
Initiate two new revenue splits that will fund operating expenses for project maintainers and a second split that will buy back and distribute MET to esMET holders.
Background
Metronome features a specialized veNFT-style lockup system called esMET. The esMET contract on mainnet confers voting rights in governance as well as auxiliary features like swap discounts on mainnet.
However, given the fragmentation of Metronome’s product across different L2s and external lending markets, certain potential capabilities for esMET are no longer as relevant.
Abstract
Over the course of 2024, Metronome has scaled considerably, achieving strong growth across the Metronome Synth Protocol and treasury metrics. Some January => December 2024 highlights include:
- TVL: $16.5m => $27M
- Monthly revenue: $81k => $332k
- Non-MET Treasury value: $6.2m => $10.9m
This proposal intends to leverage a portion of Metronome’s strong revenue metrics to the benefit of MET holders as well as towards the continued growth of the Metronome Ecosystem, such that 2024’s strong performance may be extended through 2025.
esMET Revenue Share
This proposal initiates a MET buyback distribution program for esMET holders. A portion of revenue generated by the Metronome protocol will be used to buyback MET on the open market. This MET will be distributed to esMET holders proportionately based on their esMET holdings.
The rate and frequency of buybacks will remain variable and governed by the MET DAO. The program will initially be set to $25,000 - $100,000/mo for buybacks, with quarterly reviews and corresponding governance proposals, as needed.
Operating Expense Revenue Share
This proposal is also for a revenue split that will go to ongoing Metronome maintenance and development. The revenue share will be $50,000 - $100,000/month. The exact amount per month will be dependent on additional expenses for the month.
These responsibilities include, but are not limited to:
- Maintenance of existing product stack, including Metronome Synth core, Synth assets, external integrations and all auxiliary components pertaining to each of these.
- Additional development towards Metronome UI/UX, including:
- the onboarding of external lending market integrations and additional L2 deployments into the Smart Farming experience.
- Support for directional yielding positions (ie: ETH yield collateral against msUSD borrow.
- Conditional logic for entry and exit of Smart Farming positions (ie: enter Smart Farming strategy when msAsset is at-or-above a certain peg.
- Improved portfolio view with features like earnings over time.
- Extension of the product stack, including new synth assets and collaterals, additional external lending markets, and future L2 deployments.
- Further advocacy for Metronome ecosystem assets for integration in other ecosystems, such as third-party incentives programs and DeFi apps like AMMs and lending markets.
- Increase usability of the Metronome token through novel DeFi primitives like credit facilities for esMET and liquid locked variants of esMET.
Specification
esMET Revenue Split:
- Create UI for users to engage with their esMET, observe estimated APY, and claim MET buybacks
- Begin buyback-and-distribute of MET with an initial target of $25,000 - $100,000/mo of MET bought back.
- Explore additional considerations for esMET.
Operating Expense Revenue Split:
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Metronome maintainers to continue further development and ongoing maintenance of the Metronome ecosystem
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Further development includes streamlining the UX to enable one-click looping positions on external lending markets and future L2s
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Metronome to begin monthly revenue payment to project maintainers, sourced from protocol revenue, starting March 2025, and with a first monthly payment of $100,000.