Glossary

Glossary of main concepts across the M0 infrastructure.

Earner

A holders or distributor of $M whose address is approved by governance to earn the Earner Rate.

Earner Rate

The annualized percentage paid to $M in the Earn Mechanism.

Eligible Collateral

A description of portfolio composition which can be placed in Eligible Custody Solutions and be used to generate an on-chain Collateral Value, which is subsequently used in the generation of $M.

Eligible Custody Solution

A description of entity structures, jurisdictions, contractual agreements, and other details that will suffice for the custody of Eligible Collateral.

Mint Delay

A period of time between when a Minter has called Propose Mint and when they can first call Mint. It serves as a protective measure to ensure all actors have sufficient time to audit each Propose Mint.

Mint Ratio

The fraction size of a Minter’s on-chain Collateral Value that they can generate in $M.

Minter

An institution that connects to the protocol to generate and manage the supply of $M.

Minter Freeze Time

A period of time during which a Minter will be disabled to call Propose Mint and Mint methods. Can be called by any Validator on any Minter by passing the Minter address as the argument of the Freeze method. It can be called multiple times on the same Minter to reset the Minter Freeze Time window. If Freeze is called during an already existing Minter Freeze Time, the Minter Freeze Time window will restart from the beginning.

Minter Rate

The annualized percentage charged continuously to Minters on their Owed $M. It is alterable with a Standard Proposal.

Penalty Rate

The percentage charged for missing Update Collateral interval(s) or being undercollateralized on Owed $M that is in excess of the amount a Minter is permitted to have generated. It is assessed any time Accrue Penalty is called, which is embedded in both Update Collateral and Burn. It is alterable with a Standard Proposal. This is a fixed percentage and not an annualized rate.

Periphery Contract

A smart contract that adds supplement functionality, but exists outside of the core M0 protocol.

POWER

One of the two utility tokens used in the M0 TTG. It is used to vote on active proposals and can be considered the primary management token of the mechanism. POWER holders will earn ZERO in exchange for their direct participation in governance.

Propose Mint Time To Live

The amount of time after the Mint Delay during which a Minter can mint $M before Propose Mint expires. It serves as a protective measure to ensure that Minters cannot call Propose Mint and then execute the Mint at a much later date.

TTG

TTG stands for Two Token Governor and is a mechanism by which holders of the voting tokens are penalized for failing to vote. There are two utility tokens used in the M0 TTG: POWER and ZERO.

Update Collateral Interval

This amount of time is the period between which Update Collateral must be called by a Minter. If they do not call Update Collateral within this amount of time after their previous call, their on-chain Collateral Value is set to 0 and they will incur Penalty Rate on the next update. It is alterable with a Standard Proposal.

Validator

An independent entity that provides timely information about the off-chain collateral being used to generate $M.

ZERO

One of the two utility tokens used in the M0 TTG, is earned by POWER holders in exchange for their direct participation in governance. The ZERO holders are the recipient of all remaining $M that is not paid out to the Earn Mechanism for their participation in protocol governance. The anticipated accumulation of tokens to the ZERO holders are Proposal Fee payments from proposal submission, the payments from POWER token auctions, and a portion of Minter Rate and Penalty Rate charges to Minters.