4.3.2. Obligations Outside of the Normal Course of Business
Obligations Outside of the Normal Course of Business cover Minter De-Permissioning and Wind Down procedures.
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Obligations Outside of the Normal Course of Business cover Minter De-Permissioning and Wind Down procedures.
Last updated
The interruption of a Minter’s Normal Course of Business, due to a diverse set of circumstances that the Adopted Guidance intends to address, should immediately or within a realistic timeframe lead to a Wind Down of such a Minter.
Minter De-Permissioning refers to any event resulting in a successful Governance vote to remove a Minter from the list of Permissioned Minters. Permissioned Minters are any entities in the M^0 ecosystem that have been permissioned by Governance to mint M. The Minter De-Permissioning is the main smart-contract enforced way for a Minter to leave the Normal Course of Business and enter a Wind Down process. A Wind Down is the process of progressively terminating a Minter’s operations by the SPV Operator, who sells or otherwise realizes the Eligible Collateral, using all available financial resources to purchase $M in the market, and burning such $M in repayment of the Minter's Owed M. Depending on the scenario, such a Wind Down will be done either in an amicable way – i.e. the Amicable Wind Down, or under the full control of the SPV Operator – i.e. the Non-Amicable Wind Down. The intention of this staged process is to give the ability to a Minter in good faith with the ability to remedy its actions and provide an orderly execution of its exit process, while maximizing funds recovery in the interest of the protocol.
In other exceptional cases in which a Minter is incapable of redeeming, a Minter’s set of counterparties could go directly to the SPV Operator for the successful execution of a primary redemption, provided that all core principles of the Adopted Guidance remain intact.
During an Amicable Wind Down the Minter shall continue to engage the service of a signature threshold of Validators. The Validator(s) shall continue to check the appropriate balances of the Minter’s SPV and will publish this information to a public forum at least once per Update Collateral Interval.
