II.I Operation

Aside from users accessing the M token, which is permissionless, only actors permissioned through the TTG mechanism have access to the M^0 Protocol. The primary actors in the protocol are called Minters and Validators (see II.II Governance Controlled Protocol Actors).

Once permissioned by the TTG, Minters and Validators are able to access certain methods in the smart contracts which facilitate the creation, maintenance, and destruction of M. M is a standard ERC20 token. The core operating condition of the M^0 protocol is to ensure that all M in existence is backed by an equal or greater amount of value Eligible Collateral that is held in an Eligible Custody Solution (see V.II Off-Chain Actors and Components).

In this context, the protocol acts as the enforcer of a set of rules which controls the generation of M, the validation of collateral custody and value, and the assessment of fees when appropriate.