In Part 1 of this two-part article series, we defined Smart Contracts and examined three important contracts that are part of META 1 Coin. Now, we’ll continue our explanation of the remaining Smart Contracts that are responsible for the operations and stability of META 1 Coin.
Smooth Allocation Smart Contract
The Smooth Allocation Smart Contract enables newly acquired assets to add value to the META 1 Coin slowly. This Smart Contract facilitates a smooth upward trend in value while providing coin holders with full transparency of new assets’ face value and their assignment.
These contracts are calculated as follows: the asset market value is divided by 52 weeks. This amount is added to the Appreciation Smart Contract. Then the Appreciation Smart Contract increases the META 1 Coin value accordingly.
The Smooth Allocation Contract assigns selected assets to the Asset Purchased “In Processing” Contract. This shows coin holders that a new asset is in process and that META 1 will slowly infuse value into the META 1 Coin.
Asset Value Smart Contract
META 1 Coin value is also affected by broader financial markets. Market feeds from various indices are integrated with META 1. The integrated feeds are called Market Witnesses, and this service is embedded into the blockchain. This ensures persistent functionality and automatically adjusts META 1 Coin prices according to market conditions.
Now that Smart Contracts have been explained, the following are some important implications of these contracts that are critical to understand in greater depth as well.
META 1 Coin Cannot Be Sold For Less Than Asset Value
As referenced in Part 1 of this two-part article series, coin holders cannot sell META 1 Coins for less than the asset value on the META Exchange or other exchanges. Its contract ensures that, at a minimum, META 1 Coin appreciates based on the value of the current assets backing the coin.
When META 1 Coin trades at values that are greater than asset value (in other words, market values have exceeded asset value), META 1 Coin Trust will expedite the assignment of additional assets to ensure stability. The market increase beyond current asset holdings will be accounted by additional asset assignments on a continual basis to secure META 1 Coin’s appreciation.
META 1 Coin Can Only Be Purchased By Individuals (aka Living Humans)
Living breathing Humans can buy META 1 Coin. Corporations (also known in legal terminology as corporate fictions) and other non-living entities are not permitted to buy META 1 Coin. META 1 is a coin for Humanity and needs to stay in the possession of Human Beings.
Smart Contracts are enforced by biometric authentication into the system’s “Know Your Client” procedures and programmatic verification of user accounts. META 1 Coin also establishes a Private Irrevocable Trust for each Human receiving a wallet and/or META Investment Bank account to ensure proper contracts with Humans and not corporate fictions.
Market Appreciation Variable
Trading volumes, supply, and demand within exchanges also affect META 1 Coin values. These elements are collectively known as the Market Appreciation Variable and will change the META 1 Coin value.
META 1 assigns assets to META 1 Coin to backfill the appreciation of the market. The assignment is done so that META 1 Coin Trust will have assets to support any market swings of META 1 Coin’s value. This ensures that META 1 Coin cannot drop below total asset value.
META 1 Coins are unique because they are free from counter party risk (i.e. risk of default), even though they resemble collateralized securities. Smart Contracts are implemented in the blockchain, where processes are followed for securing collateral, performing regular asset evaluations, verifications, and authenticity.
Also, as noted earlier, Smart Contracts are implemented with market witnesses verifying: the feed settlement value of required external market conditions, acceptance of new asset values, and authenticity. Market witnesses continually evaluate settlement values of equivalent assets, bonds, and market indices.
META 1 Coin operations are backed by Smart Coin technologies ensuring proper execution of the META 1 Coin via the blockchain. This emerging technology has allowed META 1 Coin Trust to design a revolutionary financial instrument available as a Private Digital Currency.