II.I.VI Removing a Permissioned Actor

Overview of the process for removing permissioned actors in the M^0 Protocol.

Permissioned actors can be removed from the system by passing a proposal in the TTG mechanism removing them from a specific list (e.g. the Minter list). Once an actor is removed they are no longer able to call the methods in the contracts, preventing them from engaging in further activity with the protocol.

Once a Minter is removed from the Minter list, they cease to pay the Minter Rate on their Owed $M. The value of current Owed $M, and potentially penalties for missed intervals, is stored for repayment by the Minter or anyone interested in their off-chain collateral retrieval. This is to ensure that $M does not get paid to the Earn Mechanism and to the ZERO holders if a Minter is no longer actively in the system.

The Burn method always remains available to anyone even if a Minter is no longer permissioned. This ensures that off-chain actors can facilitate the wind-down of the Minter’s operations and destroy the Owed $M in order to retrieve the value from the Eligible Custody Solution.

Once a Minter is removed from the Minter list, any actor in the system can call the Deactivate Minter method to cease the accrual of Minter Rate and the imposition of further Penalty Rate charges.