Skip to content

Overview

$M is for Money.

M

The $M token is an immutable ERC20-compliant token at the heart of the M0 Ecosystem. The $M token serves as the foundational building block for all M0 Extensions. Each $M token is backed 1:1 by approved collateral. It implements an innovative dual-balance accounting system:

  1. Non-earning Balances: Standard ERC20-style token balances that remain static over time — non-rebasing amounts do not increase without external transactions.
  2. Earning Balances: Token balances that automatically increase in quantity over time through continuous compounding. Holders with earning balances receive additional tokens without requiring any transactions. This rebasing mechanism means users see their token count grow as interest accrues continuously, with their viewable balance updating in real-time (per block).

This design separates standard token functionality from interest-bearing capabilities. The M0 Two-Token Governance (TTG) system determines which accounts are eligible to become Earners through an approval process recorded in the TTGRegistrar.

The $M token interacts closely with several key components of the M0 Protocol:

  • MinterGateway: Controls the total supply of $M through secure mint and burn operations.
  • Rate Models: External smart contracts that dynamically calculate the interest rates for both Minters (who borrow $M) and Earners (who hold $M).
  • TTGRegistrar: The governance-controlled parameter store that, among other things, maintains the list of approved Earners and the addresses of the active Rate Models.
  • DistributionVault: Receives excess yield, which arises when the interest charged to Minters exceeds the yield distributed to Earners.