Protocol FAQ
Do you want to know more about Money On Chain? We present the most relevant points that you should know to understand how the protocol works.
What is Money on Chain?
The Money On Chain token ecosystem takes advantage of Bitcoin's volatility by distributing it between two types of Bitcoin users, based on their interests:
The DOC, a Stablecoin for those who want a token that follows the price of the dollar.
The BPRO, a token designed for Bitcoin holders who want to earn passive income and free leverage on Bitcoin.
What are Money On Chain's core values?
Decentralization, resistance to censorship, and being free of counterparty risk.
Is Money On Chain protocol Open Source?
The Money On Chain protocol is Open Source with certain restrictions on commercial use. View license on GitHub - https://github.com/money-on-chain/main-RBTC-contract/blob/master/LICENSE
What is a stablecoin?
A stablecoin is a type of cryptocurrency whose price is stable with respect to a specific asset to which it is linked, usually a fiat currency.
What does it mean to be a Bitcoin-collateralized stablecoin?
One way to maintain the relationship between a stablecoin and the stable asset it accompanies is to use another asset as collateral. Money on Chain has chosen Bitcoin as collateral for the stablecoin, because we understand that Bitcoin is strong currency, the most stable crypto asset, and the only collateral that is truly secure, decentralized, and censorship-resistant.
What assets are involved in the Money on Chain model?
Money on Chain is based on three tokens:
DOC, a USD price-pegged Stablecoin token.
BPRO, a token designed for BTC hodlers, to earn rent on Bitcoin and gain free leverage.
MOC, a token with which you can participate in governance and obtain a discount on the payment of protocol fees.
How does the Money on Chain model work?
The DOC token achieves 1:1 parity with the USD, ceding volatility to the BPRO token, which provides the collateral, thus obtaining a slight leverage with respect to the price of bitcoin.
How is the peg to the US dollar guaranteed?
The peg is guaranteed by the smart contract, the rules and incentives are aligned so DoC can always be redeemed for the same amount of dollars in rBTC. For more details check our technical whitepaper.
How does the passive income for BPro holders work?
BPro holders will absorb the volatility from the stablecoins and will sell it to the decentralized bitcoin leveraged operation traders.
What is the incentive for someone to hold BPros instead of just Bitcoin?
BPro is thought to be an asset for Bitcoin holders: instead of freezing their Bitcoin in a wallet, they could put some of their holdings to work to obtain low risk leverage and earn a passive income in return for lending their money to decentralized bitcoin leveraged operation traders.
What are the incentives for keeping MOC tokens?
First, you’ll be able to participate in the governance of the DAO. Second, from the financial standpoint, MOCs can be used to pay fees for trading operations at a lower rate than if fees are paid with rBTC. As a result, we expect the value of the MOC to be appreciated with the use of the platform.
How much does it cost to mint or redeem DOC or BPRO?
You have to pay a small fee to mint or redeem DOC or BPRO. You can pay with MoC tokens (0.25%) or with rBTC (0.30%).
How much does it cost to transfer a token?
It is free, once tokens are issued, Money On Chain protocol does not charge for transfers.
If I deposit my BPROs on another platform, do I still receive Liquidity Mining rewards in MOC tokens?
No, if you deposit your BPRO on platforms like Sovryn or Tropykus, you are sending them to a smart contract and at the moment, they do not receive the rewards in MOC. Only single addresses holding BPRO receive the Liquidity Mining Program rewards.
Which Wallet can I use to access the MoneyOnChain protocol?
For a browser experience you can use MetaMask to access the Money On Chain web-based based application. You can also try Liquality or Defiant mobile app.
Can I store my DoC/BPro/MoC in my Trezor or Ledger wallet?
Yes, you only need to connect your hardware wallet using rLogin screen.
Is there a whitepaper for Money on Chain?
We have a publicly available whitepaper that you can download on the whitepaper page.
Does Money on Chain use the Bitcoin blockchain?
No, although we would like it to. Current versions of the Bitcoin blockchain, unfortunately, don’t support all the features required to run Money on Chain directly, so we have opted to use a different blockchain.
Which blockchain does Money on Chain use?
We use the RSK Network, the only network that provides Turing-complete smart contracts for Bitcoin.
How does Money on Chain’s architecture work?
Money on Chain’s architecture is based on a set of smart contracts. These contracts serve several purposes: platform governance, stablecoin, decentralized bitcoin leveraged exchange and a decentralized token exchange.
How can Money on Chain be collateralized by Bitcoin if it doesn’t run on Bitcoin?
RSK works as a sidechain of Bitcoin and provides the rBTC, a token that is pegged one-to-one to BTC using a two-way peg wherein the supply of rBTC is limited by the supply of BTC.
How can I get RBTC?
For a list of ways to get RBTC please read the RSK FAQS at https://www.rsk.co/faqs
Is RSK secure?
RSK is the most secure blockchain after Bitcoin itself. Bitcoin miners also mine for RSK by means of a technique called “merge mining”.
Where can I find out more about RSK?
RSK’s own FAQ list is available at: https://www.rsk.co/en/faqs/
Will Money on Chain provide pegs to other currencies such as the Euro?
Yes. Our platform is designed to run multiple stablecoins that will be collateralized independently from each other.
Will the MOC, DOC, and BPRO be available on traditional crypto exchanges?
We will operate our own decentralized token exchange (TEX) and also plan to be listed on exchanges that will also act as secondary markets.
How will the collateral and peg stability be audited?
The collateralization is public, so anybody is able to assert the stability of the peg in real time.
Is there any limit to mint and/or redeem tokens?
Under some conditions the protocol may limit the mint or redeem volumes. In that case the tokens can be traded in TEX Decentralized Token Exchange or any exchange that lists the token.
What will the leveraged margin rates be?
The rates will be defined by the market within the platform, but typically they will be smaller than any other traditional exchange.
Is the platform or any of its tokens regulated by governments?
We comply with all necessary government regulations.
How many MOC tokens will there be?
The supply will be limited to 210,000,000 MOC tokens.
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