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          • II.I.VI Removing a Permissioned Actor
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      • III. Governance
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      • Adopted Guidance v1.30
        • 1. Description of the Adopted Guidance
          • 1.1. Purpose of the Adopted Guidance
          • 1.2. Change Process for the Adopted Guidance
        • 2. Ecosystem Description
          • 2.1. Actors
          • 2.2. Mandatory Contracts
          • 2.3. Duty of Transparency
          • 2.4. Core Operational Flows
            • 2.4.1. Update Collateral Process
            • 2.4.2. Minting M
            • 2.4.3. Retrieval of Collateral
          • 2.5. High-Risk Jurisdictions
        • 3. Eligible Collateral
          • 3.1. Criteria for Eligible Collateral
          • 3.2. Valuation Policy for Eligible Collateral
          • 3.3. Collateral Storage
          • 3.4. Approved Jurisdictions
            • 3.4.1. Bankruptcy Remoteness
            • 3.4.2. Non-Petition and Non-Seizure Provisions
            • 3.4.3. Priority of Payments and Subordination
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          • 4.1. Contact Information of Currently Approved SPV Operators
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            • 4.3.1. Obligations in the Normal Course of Business
            • 4.3.2. Obligations Outside of the Normal Course of Business
              • 4.3.2.1. Amicable Wind Down Process
              • 4.3.2.2. Non-Amicable Wind Down Process
              • 4.3.2.3. Minter Insolvency
              • 4.3.2.4. Unauthorized Termination of Minter – SPV Operator Agreement
            • 4.3.3. Operational Obligations of SPV Operators
              • 4.3.3.1. Co-signature of the SPV for significant payments
              • 4.3.3.2. Cooperation with Validators
              • 4.3.3.3. Maintenance of Administrative Buffer
              • 4.3.3.4. No Wire Back Instructions
          • 4.4. Guidelines for Submission of Approval Requests
        • 5. Validators
          • 5.1. Contact Information of Currently Permissioned Validators
          • 5.2. Eligibility Criteria for Permissioned Validators
          • 5.3. Obligations of Validators
          • 5.4. Guidelines for Submission of Permissioning Requests
        • 6. BD Minters and Minters
          • 6.1. Contact Information of Currently Permissioned Minters
          • 6.2. Eligibility Criteria for Permissioned Minters
          • 6.3. Obligations of Minters
          • 6.4. BD Minter and Minter Compliance Requirements
          • 6.5. Guidelines for Submission of Permissioning Requests
        • Adopted Guidance PDF Version
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        • Adopted Guidance PDF Version
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Copyright 2025 M0 Foundation

On this page
  1. Core Documentation
  2. Adopted Guidance
  3. Adopted Guidance v1.30

2. Ecosystem Description

Overall description of the M0 ecosystem.

Previous1.2. Change Process for the Adopted GuidanceNext2.1. Actors

Last updated 1 month ago

The M0 Protocol is designed to support permissioned Actors in the minting of a crypto asset called $M. The minting of $M requires collaboration across a set of Actors complying with a set of rules, some of which can be enforced on-chain.

First and foremost, a sufficient balance of Eligible Collateral (as described in the Adopted Guidance) must be constantly identifiable and constrained for the backing of Owed $M. This requires a demonstration of the existence and validity of the collateral, repeated on an ongoing basis, and executed via the function call. Only if sufficient collateral balance has been updated and only if such balance is still valid within the timeframe implied by the collateral update interval can a Minter (see below) mint $M or retrieve collateral.

With Eligible Collateral we refer to the types of collateral that are defined to be suitable to back $M, based on the criteria listed in . With Collateral Balance we refer to the on-chain value of the Eligible Collateral available to mint $M.

The sufficiency of the Collateral Balance is determined by the following Core Operating Condition:

(Collateral Balance−Total Pending Retrievals)∗Mint Ratio≥Owed M+Proposed M(Collateral \ Balance - Total \ Pending \ Retrievals) * Mint \ Ratio \geq Owed \ M + Proposed \ M(Collateral Balance−Total Pending Retrievals)∗Mint Ratio≥Owed M+Proposed M

subject to the following definitions:

  • Total Pending Retrievals indicate the total amount of collateral a Minter is trying to retrieve from SPV by submitting a Retrieval Request to the protocol via the function. Retrieval Request is the process by which a Minter submits a request to the Protocol to retrieve a specified amount of $M. The Protocol verifies that the Core Operating Condition would not be breached by the retrieval of this amount of $M, based on the latest Collateral Balance.

  • Mint Ratio refers to the fraction of a Minter’s Collateral Balance that can be used to generate $M, which effectively controls the leverage of a Minter and the over-collateralization of $M.

  • Owed $M describes the amount of $M generated by the Minter, plus the Minter's Accumulated Minter Rate and Penalty, still outstanding — i.e. not burned.

  • Proposed $M is the amount of new $M that a Minter is requesting to mint.

The Core Operating Condition intends to guarantee that no $M can be minted and/or no collateral can be retrieved unless there is sufficient Collateral Balance.

We define Burn (or Burned $M) as a successful call to the function, which specifies a Minter’s address. Such operation effectively reduces that Minter’s Owed $M balance by the amount of burned $M.

updateCollateral()
Criteria for Eligible Collateral
proposeRetrieval()
burn()