MMX Whitepaper

MMX Token Information.

Issuer details 

MMX is a digital token that will be issued by M2 Global Wealth Limited (“M2” or “the Company”).   

M2 is an international business company incorporated in the Commonwealth of The Bahamas on Nov. 14, 2022 pursuant to the International Business Companies Act, 2000, company number - 209993B.  

M2’s office is located at the Balmoral Corporate Centre, Unit G, Prospect Ridge, Nassau, Bahamas. The registered address for M2 is Clement T. Maynard & Company, located on Shirley Street, Nassau, Bahamas. 

M2 chose The Bahamas as a domicile, based on its well-established, respected, forward-looking digital asset regulatory framework (DARE), along with The Bahamas’ growing ecosystem of established digital asset players. The DARE Act has been heralded as one of the most comprehensive regulatory frameworks for digital assets currently in the world. M2 considers The Bahamas and the Securities Commission of The Bahamas (the SCB) a leading jurisdiction in the regulation of the crypto industry, and aims to build a well-regulated Crypto business in such a stable and sustainable environment.    

For all enquiries related to the token, users can send an email to info@m2.com.  

Summary  

The MMX token is the digital asset at the core of the M2 business. It is designed to provide onboarded clients with specialised access to specific products and services within the M2 ecosystem. These include:   

  • the ability to boost yields for M2 yield products (MMX tokens used to boost yields will be burned by M2, making it deflationary);    
  • privileged access to new yield products and new coin listings; and  
  • eligibility for a percentage allocation of M2’s profits (only when a client utilises the M2 Earn program).  

The Company aims to make the MMX token available on both centralized and decentralized secondary marketplaces. The token's primary purpose is to increase the attractiveness of the M2 ecosystem and is not intended to serve as an investment vehicle or represent an ownership stake in M2.  

MMX will be freely transferable on the Ethereum blockchain. Subject to M2's terms and conditions and onboarding requirements, MMX tokens can be exchanged for other virtual assets and fiat currency, depending on the user's needs. The M2 platform enables electronic trading of digital assets for fiat, fiat for digital assets, and digital assets for other digital assets, as well as offering earn products.  

  

Governance   

The M2 Group is headed by a team of qualified professionals with years of experience in product development, finance, compliance, and technology.

Overview of the MMX Token  

Introduction  

The MMX token is a digital token issued on the Ethereum blockchain, designed to provide access to specific products or services within the M2 ecosystem. It will offer holders additional functionality on the M2 exchange, but will not be required for the general use of the exchange. 

Token Issuance and Allocation  

The total issuance of the MMX token will be 500,000,000 pre-mined tokens, with no additional tokens issued beyond this amount. The initial mint will be allocated to various groups, including purchasers, with different lockup periods (if applicable) depending on their category and/or sale phase.  

 Distribution
Percentage
# of Tokens
Release Schedule
Investors
35%
175,000,000
Locked for 2 years, then vesting monthly over 3 more years.
Rewards Pool
27%
135,000,000
Initial locked. 10% unlocked every month.
Initial Liquidity
8%
40,000,000
Unlocked
Private Sale
10%
50,000,000
20% of tokens will be released for trading immediately. There will be 3.333% linear release of the tokens every month for 2 years (24 months) starting from month 12.
M2 Team
20%
100,000,000
Locked for 2 years, then vesting monthly over 3 more years.
Total
500,000,000

Purchaser Allocation 

The purchaser allocation of “Private Sale” tokens has been set at 10% of the total token issuance, equivalent to 50,000,000 tokens. Such “Sale” tokens will be subject to lock-in periods as detailed below.

Token Sale

Private Sale

A private sale for the MMX token occurred from 1 June 2023 until 31 August 2023. 

For the tokens sold during the private sale, 20% of the tokens are immediately liquid (10,000,000 tokens with the remaining 80% are locked in a smart contract with the following characteristics: 

  • The total distribution period is 3 years (36 months). 
  • The tokens are locked for a period of 12 months, with no accrual. 
  • The tokens will be distributed monthly, commencing from month 13 and at the end of each succeeding month. 
  • These tokens will be manually released to the purchaser’s designated wallet by M2’s Operations Department. 

Public Sale 

The token marked for “Initial Liquidity” will be available for purchase on the M2 platform. The tokens sold publicly on M2 will not be subject to lock-in period restrictions and will be immediately available for use on the M2 exchange. Additional tokens from the rewards, investor and team pools will be unlocked gradually as per the above schedule and can then be traded as well by their respective owners.

Eligibility 

To be eligible to purchase MMX tokens, the user would have to be a registered user on the M2 exchange, having successfully completed all compliance requirements and agreed to the Company’s terms and conditions.

Benefits of Holding MMX Tokens 

Key benefits of acquiring and holding MMX tokens on the platform include: 

  • the ability to boost yields for M2 yield products (MMX tokens used to boost yields will be burned by M2, making it deflationary);  
  • privileged access to new yield products and new coin listings; and  
  • eligibility for a percentage allocation of M2’s profits (only when a client utilises the M2 Yield/Earn program, locking up their MMX tokens for a fixed period).

Product & Services of the M2 Platform 

M2 will provide a very comprehensive set of products and services to its onboarded clients when the exchange launches. The products and services are expected to include:

Product
Features
Trading 
  • Spot trading, including matchmaking and running an order book.  
  • Futures/derivatives trading.  
  • Margin trading.  
  • Convert (instant order to swap between units without order book).  
  • OTC desk for VIP customers. 
Custody
  • Secure storage and management of client assets.
Yield Products (Earn)
  • Customers deposit digital assets and receive a defined yield (APY); the yield varies based on  the digital asset deposited and the time commitment of the deposit (tenure).  
  • M2 in turn invests the received assets in order to generate the yields promised to customers; investments can include staking, lending to institutions, retail lending, and proprietary trading.
Investment Products
  • Customers can invest in defined investment schemes executed based on specific parameters; these will include structured products (secured by trading options or futures), token investment baskets (with automatic rebalancing, potentially with leverage).  
  • Option to invest in DeFi yield/investment products executed via M2. 
Loans/Borrowing
  • Customers can borrow digital assets using other digital assets they deposit as collateral.  
  • Loans will be fully collateralized.  
  • Liquidations will be automatically triggered if defined LTV thresholds are breached.
M2 will offer its proprietary digital payment token (MMX) 
  • Ethereum-based token with fixed supply and burn mechanism (deflationary).  
  • Token can be used to pay fees on M2.  
  • Holding increasing amounts of M2 will progress customers in Tier levels and give them benefits such as lower fees, higher yields and preferential access to new token listings and investment products.  
  • Token holders can “lock up” MMX tokens for an agreed period in M2’s Earn program for the potential to earn a percentage of M2’s profits. 
Funding
  • Accounts can be funded via credit cards, bank transfers or  digital asset deposits from external wallets. 
  • Withdrawals are possible via the same channels.  
Fiat
  • Initially, only USD will be available as a deposit and withdrawal fiat currency.  
  • Other currencies will be considered in the future.

Technical Specifications 

The MMX token is developed on the Ethereum protocol, a decentralized blockchain with smart contract functionality. It will also utilize the Ethereum Request for Comment 20 (ERC20) standard to ensure compatibility with other smart contract tokens in the ecosystem. 

Trading and Availability 

Initially, the MMX token will not be available for use on other trading platforms. However, the Company aims to have the MMX token trading on various decentralized exchanges on the Ethereum network, such as Uniswap, Balancer, and Curve and other centralised platforms (TBC) in due course. Listing on other centralized exchanges will then follow at a later date (TBC).

Disclosures  

All M2 employees and directors are required to receive pre-approval from the market surveillance team before selling any MMX tokens. This requirement is clearly noted in the Company’s Personal Account Trading policy. This does not include public disclosure. M2 employees are aware that they will be subject to disciplinary actions that include but are not limited to termination, should they violate any of the Company’s policies or procedures.  

Technical Information  

M2’s source code will be available on Etherscan via a published link which will be made available on the Company’s website. Likewise, the Company’s master wallet information will also be published on the Company’s website for users to track transaction history.  

The MMX token underpins the M2 exchange. Thus, it is of the utmost importance to ensure its continued sustainability and scalability, M2 will employ a team that will be primarily responsible for monitoring and upscaling the token’s operations on the platform. MMX tokens are built and operated on a blockchain that is not owned or controlled by M2. Therefore, M2 will monitor the blockchain for any upgrades or changes which could impact MMX’s functionality.  

Markets for digital assets can have varying levels of liquidity, the uncertainty of the market’s liquidity can often affect the success of an asset. Realizing this, the Company intends to provide continued support to the market in the form of liquidity up to $50 million to ensure the success of MMX. Likewise, M2 will provide periodic incentives within the community in an effort to increase the overall market liquidity.   

There are no other protocol interoperability considerations as no new protocol is being established through the launch of MMX. As MMX is being launched on the Ethereum ERC20 standard, and not a new network, the time frame for the network to reach maturity will not pose an issue with regard to this issuance.   

The funds raised through the initial token offering will be allocated for the ongoing business operations and the provision of the token’s liquidity as previously described. Any unsold tokens will be returned to the liquidity pool and their further treatment will be decided at that time by M2.

Platform details 

The token's smart contract will be deployed using the Ethereum ERC20 standard, featuring a basic token smart contract without any additional embedded functionalities. The smart contract does not include external contract calls nor allow voluntary withdrawals.  The smart contract exists to emit 500,000,000 MMX tokens. 

The token will be launched on the Ethereum ERC20 protocol and uses this protocol’s Proof of Stake methodology for securing transactions. There will be no restrictions on the free transferability of the token on this protocol. No pre-emption exists within the token structure. Transaction fees will be payable in Ethereum (ETH) tokens, per the normal operation of a token built using the ERC20 standard. There are no restrictions embedded and no oracles used in the token’s smart contract.   

Access to M2, the platform on which MMX is traded, is governed by M2's KYC/AML policies and procedures, preventing individuals or entities from sanctioned or otherwise restricted countries from acquiring MMX tokens on the M2 platform.  

M2 holds and/or possesses all necessary legal rights to patents, trademarks, service marks, trade names, copyrights, trade secrets, licences, information, processes, and other intellectual property rights essential for conducting its current business operations and those proposed for the future, without conflicts or infringements on the rights of others.  

Financial Details  

MMX operations constitute a part of M2’s total operational expenses. The Company plans to finance MMX’s operational costs annually, which are expected to involve an initial capital injection of up to $150,000,000. In light of this, M2 is committed to conducting an annual independent audit of its reserves. These reports will outline the company's financial standing and verify M2's capacity to sufficiently support the MMX token.     

Marketing  

MMX is available and accessible to all customers of M2. 

All potential purchasers of the MMX token on M2’s platform will be required to have successfully completed M2’s compliance and onboarding requirements.  As a result, individuals from prohibited, banned, or sanctioned countries will not be eligible to participate in the offering.

Cybersecurity   

The Company utilizes both ISO and NIST standards, ensuring that all policies comply with regulatory guidelines.  Access to smart contracts is controlled via specific permissioned groups using Office 365 (O365) Single Sign-On (SSO) to M2’s code repository. Access to the AWS infrastructure uses specific permissioned groups in O365 controlled via Amazon Web Services (AWS) Watch Tower.   Both systems are protected behind a VPN, with access controlled by O365 SSO. All system logs detailing access, creation, or changes are fed into our Security Information and Event management (SIEM) which is enriched with intelligence feeds and monitored 24/7.  

The tools that the Company utilizes on its endpoints are: Microsoft Defender, Intune Configuration Manager, Endpoint Detection & Response (EDR), Web Content Filtering, Threat & Vulnerability Management and Endpoint Data Loss Prevention (DLP). Likewise, for our cloud, we utilize AWS GuardDuty, AWS Shield, Cloudwatch, AWS Inspector and AWS Control Tower.   

Access to the Company’s physical and virtual information is controlled by a biometric configuration programmed by the IT and Security team. The server controlling the biometric lock resides in a safe room where the lock and server are on UPS for uninterrupted power.   

Most importantly, M2 realizes that the best systems cannot adequately protect a company without an experienced team of cybersecurity professionals to implement and monitor those systems. The Company employs personnel with over thirty years’ experience in cyber security from both large scale and start-up environments.  Additionally, M2 regularly conducts training exercises to sharpen its team’s skills. 

Compliance and Risk Management  

To appropriately address AML/CFT risks arising from its business, the Company has adopted a multifactorial risk-based approach that considers the nature of the business, the type of client, geographical elements, and the way the Company interacts with them.  

M2's senior management commits to:   

  • Establishing clear client acceptance standards, which may involve Enhanced Due Diligence (EDD) as client risk increases.   
  • Implementing client identification and screening procedures against databases to assess acceptability.   
  • Developing client profiling procedures to identify the purpose of the business relationship.    
  • Providing clear guidance as to when and under what conditions reliance can be placed on the Know Your Customer (KYC) profiling or screening performed by affiliated entities or external third parties;    
  • Establishing controlled procedures for deciding when to exit a client relationship due to AML and KYC concerns; and   
  • Appointing a Money Laundering Reporting Officer (MLRO) who will be   responsible for the oversight of AML and KYC activities within and on behalf of the Company.  

Risk

NOTE: No person should use M2’s services, purchase or hold MMX tokens until and unless they understand the risks. This section discloses some of the intricacies and risks related to the token.

Disclosures

The risks associated with the MMX token and its purchasers include, but are not limited to, the following:  

  • Regulatory Risk: The token may be subject to changes in regulatory frameworks across various jurisdictions, which could impact its utility, value, or legality. Purchasers should be aware that regulations governing cryptocurrencies and tokens are constantly evolving, and future regulatory changes may affect the token's usage or market value.  We have applied to both the Bahamian and Abu Dhabi Global Markets regulators initially and will seek additional regulatory licenses from the other jurisdictions in which M2 intends to operate.   
  • Market Risk: The value of the token may experience significant fluctuations due to market dynamics, investor sentiment, and external factors such as changes in the overall digital asset market. Purchasers should be prepared for the possibility of substantial fluctuations in the token's market value. 
  • Technical Risk: The functionality of the token relies on the underlying blockchain technology. Technical issues, such as bugs or vulnerabilities, may disrupt the token's functionality and potentially result in loss of value or utility. Purchasers should consider the possibility of technical challenges impacting the token's performance. 
  • Security Risk: The token may be susceptible to cybersecurity threats, including hacking, phishing, and other malicious activities. These threats could lead to the loss or theft of tokens from the exchange or users' wallets. Purchasers should be aware of the potential for security breaches and their potential impact on their investment. 
  • Liquidity Risk: The token's liquidity and market value may be impacted by the token's trading volume and ease of conversion to other cryptocurrencies or fiat currency. Purchasers should be aware of the potential for limited liquidity, which could affect their ability to buy or sell the token. 
  • Legal and Tax Risk: The legal and tax treatment of tokens varies by jurisdiction, and changes in these treatments could impact the token's value, utility, or legality. Users may also face additional tax implications or reporting requirements. Purchasers should consult with legal and tax professionals to understand the potential legal and tax consequences of their investment. 
  • Third-Party Risk: The token may rely on third-party platforms, services, or smart contracts. The failure or disruption of these third parties could negatively impact the token's utility, value, or security. Purchasers should be aware of the potential risks associated with reliance on third-party services. 
  • Adoption Risk: The success of the token depends on widespread adoption and usage by users and partners. If the token does not achieve the desired level of adoption, its utility and value may be limited. Purchasers should consider the risk of limited adoption in evaluating their investment. 
  • Competition Risk: The rapidly evolving cryptocurrency and blockchain landscape may result in new competitors offering similar or superior tokens or solutions, which could negatively impact the demand and value of the token. Purchasers should be aware of the potential for increased competition and its impact on the token's market value. 
  • Reputational Risk: Negative publicity or perceptions surrounding the exchange, the token, or associated projects and partners could impact the token's value, adoption, and long-term success. Purchasers should consider the potential impact of reputational risks on their investment.  The value of the token is closely tied to the success and adoption of the underlying platform or service.  

This summary is not intended to be an exhaustive list of all potential risks, and purchasers are advised to consult with legal and financial professionals before making any purchase decisions.  Purchasers should carefully consider the risks outlined above, as well as other potential risks not specifically mentioned, before making any decisions regarding the token. Purchasing cryptocurrencies and tokens carries inherent risks, and purchasers should be prepared for the possibility of losing the entire value of the token.

Risk Mitigation Measures 

M2 is committed to identifying and mitigating the risks associated with the token as outlined above. We have implemented the following measures to address and manage these risks:  

  • Regulatory Compliance: We continuously monitor the regulatory landscape across various jurisdictions and actively engage with legal professionals to ensure compliance with all applicable laws and regulations, including Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. We also seek to adapt our business practices and token offerings as necessary to address any regulatory changes.
  • AML/CTF Measures: We have established comprehensive AML/CTF policies and procedures to detect, prevent, and report suspicious activities. This includes performing Know Your Customer (KYC) checks, monitoring transactions for unusual patterns, and maintaining ongoing risk assessments, prohibiting anonymous or private addresses including but not limited to un-hosted wallets, prohibiting darknet and blacklisted addresses, prohibiting the transfer to digital assets to sanctioned jurisdictions and prohibiting the use of anonymizing software.  We also provide regular training to our staff on AML/CTF compliance and collaborate with relevant authorities as required. 
  • Market Stability: We strive to maintain a stable and transparent token market by implementing robust market surveillance, providing accurate and timely information to clients, and maintaining open communication channels to address any concerns. 
  • Technical Safeguards: We invest in the continuous development and improvement of our underlying blockchain technology, prioritizing security, scalability, and performance. Our development team conducts regular audits and tests to identify and fix any vulnerabilities or technical issues. 
  • Security Measures: We implement stringent security protocols, including encryption, multi-factor authentication, and cold storage solutions, to protect our platform and users' wallets from unauthorized access and cyber threats. We also encourage users to follow best practices for securing their own accounts and tokens. 
  • Liquidity Support: We actively work on building partnerships with other exchanges, market makers, and liquidity providers to promote the trading and liquidity of our token. We also maintain an open dialogue with our community and provide regular updates on our progress. 
  • Legal and Tax Guidance: We collaborate with legal and tax professionals to ensure that we stay informed of any changes in the legal and tax treatment of tokens in various jurisdictions. We also provide resources and information to our users to help them navigate the legal and tax implications of their investment. 
  • Third-Party Due Diligence: We carefully select and evaluate third-party platforms, services, and smart contracts that our token relies on to ensure they maintain the highest standards of security, reliability, and performance. We regularly review and reassess these relationships to ensure the continued safety and functionality of our token. 
  • Adoption Strategy: We actively promote the adoption and usage of our token by developing user-friendly applications, onboarding strategic partners, and engaging in targeted marketing efforts. We also actively seek feedback from our community and users to continuously improve our offerings and services. 
  • Competitive Analysis: We closely monitor market trends and competitors to ensure that our token remains competitive and innovative. We invest in research and development to create new features, services, and solutions that enhance the value proposition of our token. 
  • Reputation Management: We prioritize transparency, accountability, and open communication with our community, partners, and regulators. We actively address any negative publicity or perceptions through proactive engagement and by demonstrating our commitment to the long-term success of our token. 

These measures represent our ongoing efforts to identify, address, and mitigate the risks associated with our token. While we strive to minimize these risks, purchasers should still carefully consider the potential risks and uncertainties before making any investment decisions.

Third Party Audit 

The MMX token smart contract has been audited by Certik. The audit report found no critical or high-level vulnerabilities.

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