MANTRA Token Service (MTS) is a comprehensive SDK for web3 businesses to create, issue, distribute, and manage digital assets on the MANTRA network with regulatory compliance capabilities. It enables the creation of digital assets that adhere to various regulatory frameworks across different jurisdictions.

Overview

MANTRA's ecosystem consists of both a decentralized application (dApp) ecosystem and a modular execution layer designed specifically for real-world asset (RWA) tokenization. The platform operates on a permissioned model, allowing only approved entities to create, manage, or transfer tokens, ensuring responsible usage and regulatory compliance. This approach creates a unique environment where permissioned applications can operate on a permissionless blockchain infrastructure.

MANTRA Chain serves as a Layer 1 blockchain specifically built for RWA tokenization, capable of adhering to and enforcing real-world regulatory requirements. The chain provides a compliant environment for users, developers, and regulators to operate within, establishing strong foundations for global RWA liquidity to develop new network effects. ^[1]

The ecosystem aims to bridge the gap between traditional finance and decentralized finance by enabling seamless interaction between crypto and fiat currencies, as well as on-chain and off-chain assets. This integration allows for single-click transfers from bank accounts to brokerages to wallets, effectively abstracting away the frictions between traditional and decentralized financial systems.

Key Features

MANTRA Token Service offers several powerful features that make it a versatile platform for digital asset management:

• Asset Creation and Management: Create, issue, and manage both fungible and non-fungible assets on the MANTRA network. ^[2]
• Access Control and Permissions: Implements a role-based access control mechanism that includes the ability to freeze, seize, destroy, and transfer tokens, providing enhanced security and compliance capabilities. ^[2]
• Configurable Yield and Royalties: Allows asset issuers to configure yield distribution and royalty structures for their tokens. ^[2]
• Predictable and Low Fees: Offers a fee structure that is both predictable and cost-effective for users. ^[2]
• Regulatory Compliance: Designed to accommodate various regulatory frameworks for fiat currencies, securities, commodities, and other financial instruments. ^[2]

MANTRA Ecosystem Components

MANTRA Chain

MANTRA Chain is the foundation of the ecosystem, providing a permissionless blockchain infrastructure for permissioned applications. Key aspects include:

• Layer 1 Blockchain: Built specifically for RWA tokenization with regulatory compliance in mind.
• Cosmos SDK-Based: Leverages the Cosmos SDK for interoperability with other blockchains in the Cosmos ecosystem.
• Regulatory Compliance: Designed to adhere to and enforce real-world regulatory requirements.
• Permissionless Infrastructure: Anyone can use and build on MANTRA Chain, while applications can implement permissioned access as needed. ^[1]

AUMEGA

AUMEGA is positioned as the flagship RWA portal on MANTRA Chain, combining elements from both decentralized and centralized finance:

• Hybrid Trading Mechanism: Powered by both automated market maker (AMM) mechanisms popular in DeFi and central limit order books (CLOB) preferred in traditional finance.
• Diverse Asset Trading: Facilitates trading and investing in both crypto assets and tokenized RWAs.
• User Categories: Designed for both retail and institutional investors. ^[1]

OM Token

The OM token serves as the native cryptocurrency of the MANTRA ecosystem, with several important functions:

Tokenomics

• Supply Structure: The genesis OM token supply will be uncapped with variable inflation upon mainnet launch, ensuring a robust proof-of-stake network where validators are continually incentivized to secure MANTRA Chain.
• Distribution: Existing ERC20 OM tokens are distributed among the MANTRA community, developers, and the MANTRA Foundation. The genesis supply of IBC-compatible Cosmos mainnet OM coins will be distributed to the Swiss MANTRA Association not-for-profit entity, OM stakers, investors, MANTRA team and core contributors, as well as a genesis airdrop for incentivized testnet users and other stakeholders in the wider Cosmos community. ^[1]

Utility

OM is designed as a Proof-of-Stake mainnet coin with multiple utilities:

• Network Security: Allows users to secure the RWA L1 blockchain through staking.
• Governance: Enables holders to influence future OM liquidity emissions.
• Staking Rewards: Users receive staking yield in exchange for securing the network. ^[1]

Rewards and Incentives

• Staking Multiplier: Users staking OM on the platform will be eligible to earn up to a 1.35x multiple on their staked amount when mainnet goes live.
• Testnet Participation: Hongbai testnet users can complete activities such as Galxe Quests to become eligible for airdrops. ^[1]

Development Status

As of early 2024, MANTRA's development status includes:

• Testnet: The Hongbai testnet is currently live, allowing developers and users to test the platform's capabilities.
• Mainnet Launch: The mainnet is expected to go live later in 2024, which will include the expansion of the OM token supply and the introduction of IBC-compatible mainnet coins. ^[1]

Integration with Traditional Finance

MANTRA aims to create seamless integration between traditional financial systems and blockchain technology:

• Banking Integration: Direct integration with traditional banking systems, enabling smooth interaction between crypto and fiat currencies.
• Frictionless Transfers: The ecosystem is designed to allow single-click transfers between bank accounts, brokerages, and wallets.
• Abstraction Layer: The complexities and frictions between on-chain and off-chain worlds are abstracted away, becoming invisible to the end user. ^[1]

Partnerships and Ecosystem

MANTRA has established partnerships to expand its ecosystem and accessibility:

SwissBorg Integration

SwissBorg has integrated MANTRA's OM token into its platform, offering several benefits:

• RWA Crypto Bundle: OM is featured in SwissBorg's RWA Crypto Bundle, allowing users to invest in prominent crypto projects in the real-world assets vertical.
• Fiat Currency Support: SwissBorg app users can buy, sell, and exchange OM with 16 fiat currencies, including EUR, CHF, and GBP.
• Simplified Access: SwissBorg's integration enhances the overall user experience for OM token holders by simplifying access and management. ^[1]

Technical Architecture

MANTRA's technical architecture is designed to support its vision of creating a highly liquid RWA ecosystem:

Blockchain Infrastructure

• Cosmos SDK: Built using the Cosmos SDK, enabling interoperability with other blockchains in the Cosmos ecosystem.
• IBC Compatibility: The mainnet OM coins will be IBC-compatible, allowing for seamless transfers between different Cosmos-based blockchains.
• Modular Execution Layer: Features a modular execution layer that can be adapted to different use cases and regulatory requirements. ^{[2] [1]}

Smart Contract Capabilities

MANTRA Chain supports smart contracts, enabling developers to create complex applications on the platform:

• CosmWasm Support: Likely supports CosmWasm for smart contract development, which is common in Cosmos-based blockchains.
• EVM Compatibility: May offer Ethereum Virtual Machine compatibility for easier migration of Ethereum-based applications.

Use Cases

MANTRA's platform is designed to support a wide range of use cases related to real-world asset tokenization:

• Tokenized Securities: Enabling the creation and trading of tokenized stocks, bonds, and other securities.
• Real Estate Tokenization: Allowing for the fractional ownership of real estate properties through tokenization.
• Commodity Tokenization: Facilitating the tokenization of commodities like gold, oil, and agricultural products.
• Regulatory-Compliant DeFi: Creating DeFi applications that comply with regulatory requirements, bridging the gap between traditional finance and DeFi.

Governance

MANTRA implements a governance system that allows OM token holders to participate in decision-making processes:

• Proposal System: Likely includes a proposal system where token holders can submit and vote on proposals.
• Validator Selection: OM token holders can delegate their tokens to validators, influencing the security and operation of the network.
• Parameter Changes: Governance can be used to adjust various parameters of the network, such as inflation rates and fee structures.