What is M by M^0?

M0 is a decentralized stablecoin infrastructure protocol that enables developers and institutions to build, manage, and customize application-specific digital dollars onchain.

The core asset called $M, a collateral-backed digital dollar building block that is over-collateralized with yield-generating mechanism and transparently validated by a network of independent validators to ensure reserve integrity.

The key innovation is the dual-balance system within a single smart contract, allowing the same token to exist in either a standard "non-earning" state or a special "earning" state. Users who have been approved as "Earners" by the M0 protocol's Two-Token Governance can activate earning mode for their $M balance. Once activated, the balance grows continuously through a transparent, on-chain interest accrual process without requiring any further user action. The system includes safety features to prevent unauthorized earning and supports advanced standards like EIP-2612 for gasless transactions.

Unlike traditional single-issuer stablecoins, M0 supports an open, federated multi-issuer model where regulated issuers can mint $M by pledging eligible collateral under shared governance rules.