Today MXON minted the first $10 million in $M stablecoins on the Ethereum-based M^0 network. M^0 is a novel stablecoin that decentralizes the minting of stablecoins among multiple ‘minters’ and shares revenues with ‘earners’, including market makers and cryptocurrency exchanges.
Despite having multiple minters, there is only one fungible $M token. The stablecoin reserves are backed by short-dated Treasuries, avoiding exposure to the banking system by not using reverse repo or cash.
It also released the draft adopted guidance, which outlines the network’s rules.
“Completing this mint is a significant milestone for both MXON and the entire M^0 ecosystem,” said Jacqueline To, Head of Operations for MXON. “It underscores the robustness of the M^0 protocol and the concrete possibility of a decentralized monetary architecture.”
Given that Jacqueline To also works for M^0 Labs, we inquired about MXON’s independence. MXON was bootstrapped alongside the M^0 project with contributions from team members and funding from the project.
Recently, M^0 raised $35 million in a Series A funding round led by Bain Crypto. Four market makers—Galaxy, Wintermute, GSR, and Caladan—also joined the funding, given the plan to share revenues with ‘earners’.
We recently featured the project, which is unusual for us as we typically do not cover emerging crypto projects. We have no financial or personal interest. However, the model has significant potential. While it’s too early to tell whether M^0 will succeed, it’s likely that elements of its model will appear in the next generation of stablecoins.
