AMA Summary March 4th, 2022
There’s no better way to kick off your weekend than with a Kevin AMA! Here’s the highlights from March 4th.
This is our boosted staking initiative for XCM (for more details read more here). We are planning to introduce something new at least once a month. This will give us a three to four months window to add additional staking programs to the XCM MARs program and this way we can give some updates on a regular basis.
I am not too worried about a WWIII. It is terrible what is happening in Ukraine. Possibly, something good will come out of this. Globally, we didn’t do anything when Russia annexed Crimea. An army that is well funded would have taken Ukraine in a few hours and Russia has been there for a week. Long story short: I don’t think we have anything to worry about. Once the situation is resolved, we should focus on helping Ukraine. Plus, when it ends there will hopefully be a swift change of power.
We have had other programs that indirectly made the XCM staking sustainable. Directly, we haven’t yet found a safe way without putting too much risk on the XCM book. We are still looking for ways to do this, but we haven’t solved the puzzle yet.
If Coinmetro would have to freeze Russian accounts, it would let them know beforehand. Right now, the sanctions in Russia are very specific. We are regulated, we choose to be regulated. MetaMask is limiting IP access to certain countries. I mentioned for years that decentralized applications would get the same limits as centralized ones, which we’re starting to see right now. Unfortunately, to a certain extent, being regulated limits us in a certain capacity to fulfill that mission. It is easier to change things from the inside than from the outside. People should be able to transact regardless of where they are in the world. I don’t believe the actions of a few should limit and affect the many.
The XCM MARs program would not put XCM into security territory because we receive rewards from clients’ deposits into different protocols. We just distribute those rewards based on your own amount of staked XCM.
We were only vaulting a percentage of exchange fees. Now, the burn will begin to include a percentage of commission fees on the margin platform and the TRAM. We will also begin to include a percentage of different trading fees that are tied to other platforms like the swap widget as well as margin fees. What that will do to the burn size in relation to the vaulting size as before, off the top of my head, is that exchange fees, in general, account for somewhere around 20% to 25% of our overall revenue. That doesn’t mean that 70% comes from other trading fees. I would expect it to at least double, not right away because we have to institute those burns. At least a doubling over time in terms of the ratio of our revenues in the near term. Potentially even triple when Tram 2.0 comes out, when margin beta comes out, when more users are going to use TRAM, etc.
Probably five to ten years before MICA is going to have an effect on the market. Not too worried about any changes in regulation. We can meet or exceed any expectations. Regulations are probably one of my least worries for the company. For the industry, regulatory risks abound. For Coinmetro in general, I am not so worried.
As a maturing company, we needed a maturing image. If you compare to how Coinmetro looked four years ago and the progression we have made, this is definitely a more mature look and it is going to be more acceptable by a wider audience. I like quirky things and I like the train. For me, it is a bit of nostalgia. I also understand that the vast majority of people are not like me and in order to mature this business, we need to be accepted by a wider audience.
There are lawyers, money laundering and reporting officers in our compliance department. Arbitration and court can always be sought. Internally there is an escalation policy, which is being refined. This escalation policy will go to compliance, through the CCO, to the board, to the chairman of the board.
We like to support our partners. We consider KDA our partner and we like to support them. We will also have other L1s and L2s that we will also want to partner with and that will benefit from being part of our ecosystem. If we would be multi-chain, we would absolutely want to be on KDA. We want to expand, we don’t want to create situations where there is focus on one single thing. We want to give people more access and choice, so multi-chain is probably where we are headed.
Thanks for hanging out with us, we’ll see you next week.