Coinspeaker
Ethereum L2 Metis Launches Sequencer Mining
Metis, an Ethereum Layer-2 (L2) rollup platform, has announced the completion of Phase 1 of its Decentralized Sequencer upgrade and is now moving forward with Phase 2. This second phase encompasses sequencer mining, transaction pools, and multiple transactions within a block.
According to the exchange’s blog post, the launch makes Metis not just the first roll-up platform to achieve decentralized sequencing but also introduces new features like sequencer mining and liquid staking.
Metis Sequencer Mining and Its Impact
Sequencers are crucial for ordering and batching transactions before submitting them to the Ethereum mainnet. The introduction of multiple sequencers and rotation is designed to prevent a single point of failure and increase network resilience.
One of the most noteworthy features introduced in Phase 2 is the sequencer mining which allows sequencer nodes to earn METIS tokens for processing transactions and generating blocks on the Metis network. These nodes are operated by various entities worldwide to maintain decentralization and fairness.
An essential component of the new Sequencer Mining system is the role of Liquid Staking Providers (LSTs). These providers operate nodes and allow users to lock their tokens, receiving liquid staking tokens in return. Metis’ Community Ecosystem Governance (CEG) selected Artemis Finance and Enki Protocol as the initial LST providers for the Alpha Phase.
In Phase 1, Metis introduced multiple sequencer nodes and initiated sequencer rotation. This set the stage for a decentralized approach to processing transactions on the network. Phase 2, which was activated by a hard fork on block 16500000, brought significant enhancements.
Liquid Staking and Expanding DeFi Opportunities
The multiple transactions within a block allow for numerous transactions within a single block and it is an upgrade from the previous approach where each block contained only one transaction. The transaction pool is similar to mempool but private for sequencer nodes meant to facilitate the fixed confirmation time of 2 seconds, even during transaction spikes, ensuring a smoother experience for users.
Another essential component of the new Sequencer Mining system is the role of Liquid Staking Providers (LSTs). These providers operate nodes and allow users to lock their assets, receiving liquid staking tokens in return. Metis’ Community Ecosystem Governance (CEG) selected Artemis Finance and Enki Protocol as the initial LST providers for the Alpha Phase.
Meanwhile, Metis is establishing a 20% Mining Rewards Rate (MRR) for the first year, as a way to incentivize participation in sequencer mining. Additionally, the introduction of LST-focused products such as liquidity pools, lending pools, and collateralized debt positions (CDPs) provides further opportunities for METIS LST holders to engage with DeFi use cases on the platform.
To ensure proper decentralization and promote high participation rates, Metis has secured partnerships with key crypto institutions that will support the network’s growth and development. These partnerships aim to bolster Metis’ vision of a robust decentralized sequencer system with broad community involvement.
