The Meter Reserve

The Meter protocol does not have a centralized government but retains the concept of possessing a reserve to absorb any significant shocks to MTR’s price stability.

At launch, 100% of the proceeds collected from the on-chain auctions (in MTRs) gradually go to validators as block rewards in the next 24 epochs. However a portion of the proceeds can be put into a system reserve. The MTRs that are put into the reserve are temporarily removed from circulation. This reserve allocation ratio is a parameter that can be adjusted via the Meter governance process.