We at Metal understand that some of you are interested in learning more specifics about our unique distribution system called PoPP. This 3 post series is for you.
Before we dive in, we’d like to zoom out and remind you of our big picture goal. While it’s true that Metal is centralized now, our distribution model PoPP will not remain exclusive to Metal Pay, or even to Metal. Yes, Metal Pay will help introduce cryptocurrency to the masses in a customer-facing app like nothing the crypto world has seen. But Metal Pay also lets us at Metal test our PoPP distribution model and make adjustments as needed before we release the PoPP ruleset to the world in our own blockchain. The Metal Blockchain will allow other cryptocurrencies to build apps around the PoPP distribution model to facilitate mass adoption of cryptocurrency.
Okay, time to zoom back in. You’ve probably seen and heard us talking about Pop, the reward you get inside of Metal Pay that is distributed via PoPP. But how much can you get? How do you get more? This post will focus on where Pop comes from and how it gets in your hands. Why are we starting here? Because Pop is what gets you paid for paying others.
Be warned, there’s some math involved.
First, let’s define some terms so we’re all on the same page.
PoPP - Proof-of-Processed-Payments. Our method for distributing all of the 26,341,112 MTL tokens that we set aside at the creation of MTL.
PoPP pool - Where the 26,341,112 MTL is stored before it’s sent out to Metal Pay users.
Pop - The MTL reward you get back each time you send or receive money in our app, Metal Pay.
Pop score - A score that is unique to each user, which defines a maximum % back that a user can receive in Pop after each transaction. Higher Pop score = more Pop = more $$$ coming your way.
Metal Pay is our payments app that rewards users with our cryptocurrency (MTL) for making and receiving payments. We use PoPP (distribution method, remember?) to give Metal Pay users a bit of Pop from the PoPP pool that is based on their Pop score. Still with us? Awesome. Moving on!
Pop Distribution Rate
Q1: How long will the PoPP distribution last?
A: As it stands right now, PoPP distribution will last for at least 10 years. We have capped the total amount of Pop that we are distributing to users via PoPP at 7,200 MTL per day.
Q2: How often is Pop distributed?
A: Pop is distributed in blocks of 10 minutes. We distribute a maximum of 50 MTL every 10 minutes, which gives us our 7,200 MTL daily cap.
Q3: What happens if the maximum Pop reward within a 10-minute window is greater than the capped Pop reward of 50 MTL?
A: At the end of every 10-minute block, the maximum Pop reward is calculated assuming there is no cap in place, and then is scaled down to meet the 50 MTL cap. Confused? No problem, we’re going to break this math part down for you.
Example 1: Let’s say that 1 MTL is worth $1. In the 10-minute window between 10:00 am and 10:10 am, 50 users on Metal Pay each sends a $20 transaction to 50 other people, and there are no other transactions during this 10-minute window. For the sake of this example, let’s assume all users have a Pop score that makes them eligible to receive up to the maximum of 5% back. We also need to assume that all these transactions have processed and are no longer pending - it is “Proof-of-Processed-Payments” after all!
Volume of processed payments = 50 transactions × 20 dollars/transaction = $1000
Maximum Pop distribution per user = 20 dollars × 5% back = $1
Maximum Pop distribution = 100 users × 1 dollar/user = $100
Capped Pop distribution = 50 MTL × 1 dollar/MTL = $50
Actual Pop distribution per user = 20 dollars × 5% back × ($50/$100) = $0.50
Q4: How does my Pop score impact how much Pop I can receive?
A: Your Pop score comes into play during the calculation of the maximum Pop you can receive. More math coming right up!
Example 2: Sticking with our 1 MTL = $1 assumption. In the 10-minute window between 10:00 am and 10:10 am, Alice sends Bob $1,000 on Metal Pay, and there are no other transactions during this 10-minute window. Alice has a Pop score that makes her eligible for a maximum of 5% back. Bob has a Pop score that makes him eligible for a maximum of 2% back.
Volume of processed payments = 1 transaction × 1000 dollars/transaction = $1000
Maximum Pop distribution for Alice = 1000 dollars × 5% back = $50
Maximum Pop distribution for Bob = 1000 dollars × 2% back = $20
Maximum total Pop distribution = $50 (to Alice) + $20 (to Bob) = $70
Capped Pop distribution = 50 MTL × 1 dollar/MTL = $50
Actual Pop distribution to Alice = $1000 × 5% back × ($50/$70) = $35.72
Actual Pop distribution to Bob = $1000 × 2% back × ($50/$70) = $14.28
Q5: How long does it take for users to receive Pop?
A: We distribute Pop in 10-minute windows, so users will receive a Pop reward within 10 minutes after the payment has processed. If the payment is coming from a cash balance inside of Metal Pay, the payment will process instantly. If the payment is coming from a linked bank account, the processing time depending on the ACH processing rate for the user's linked bank - which could take a few business days.
Clarification: While we must wait on the ACH processing to deliver Pop to you, the funds from you linked bank will arrive in your recipient's Metal Pay Cash balance instantly.
Q6: Is there a minimum transaction amount needed to receive Pop?
A: A transaction amount must equal or exceed $1 to be eligible for Pop.
And that's it for Volume I! Stay tuned for Volume II tomorrow, where we will talk about the actions that will raise or lower your Pop score.