Marmara Credit Loops

Marmara Credit Loops on MarmaraChain, a trust based/self assured peer-to-peer credit creation and circulation system, is the very first digitized version of the widely used analog post-dated cheques in the World. Marmara Credit Loops (MCL) have most of the features provided by the Komodo Blockchain technologies and have been developed based on the way of smart contracts with Custom Consensus (CC) system in Komodo Antara Framework.

In addition to being the very first digital version of the credit loops, due to its structure and conforming operations with the blockchain technology, Marmara Chain is very unique in the world that implements blockchain in such a way.

The credit loops are applied directly onto the blockchain core. It is not possible to intervene, manipulate or change it in any ways.

The properties of the system are summarized below:

  • Works best in Real Economy: MCL is a DeFi system designed to run in real economy during shopping. Both issuer and holders can earn from 3x staking during shopping in life cycle of a credit loop. Credits in a loop can be endorsed and circulated until maturity date.

  • Half of blocks comes as activated/locked: 50% of blocks found are already activated/locked. Hence, they readily join in staking process. You can unlock them anytime for spending or lock in credit loops for 3x staking power.

  • 3x staking in Credit Loops: 3x staking when Activating/locking Coins in Credit Loops. They are settled automatically on maturity date and cannot be opened by anyone. But credits may be endorsed to buy goods and services. They act as money during shopping.

  • Nonmanipulable, nonintervenable credit loops: Credit loops cannot be stopped and credits in loops can circulate during shopping until maturity date. The nodes in a loop is maximum 1000.

  • Block Rewards: Block time is 1 minute and rewards per block are 30 Marmara (MCL).

  • 75% Staking: Staking is only possible with activated/locked coins. You have the 3x staking power when staking with coins locked in Credit Loops.

  • 25% Mining (PoW): MCL uses Equihash algorithm for Mining with PoW which has only 25% effect in block rewards. You can mine Marmara similar to Komodo and Zcash mining.

To the contrary belief, banks are not the sole institutions for creating money based on credit. In many countries all over the world, like banks, individuals are able to create money through post-dated cheques or promissory notes in a peer to peer manner. They work best in real economy.

Inspired by the paper-based blockchain nature of these promissory notes and post-dated cheques’ circulation, in the same analogy, Marmara Credit Loops Project aims to digitalize those credits on the blockchain while solving the problem of non-redemption of these tools.

The early release of this Project, named as Version 1 (Protocol 1), solves the problem of non-redemption with 100% collateralization through trustless blockchain mechanism.

The second Protocol of the Project aims to solve the non-redemption problem based on a trust based blockchain system with the aid of a protective layered architecture of nodes in credit loop layer formed against defaulting.

 Protocol 1 Millennium Version

100% Collateralization Mode

Boosted Reinforcement of Purchasing Power

Issuers and Holders can earn with 3x staking while shopping with Credit Loops.

Protocol 2 Trust Based

Zero  Collateralization

Money Creation via Communities


People can create credits via their escrows in their communities.

Marmara  v.1.0

100% Self-assured Credit Loops System

In Protocol 1, all credits are fully collateralized by issuers of credits. Therefore, there is no defaulting risk. For providing this, issuers in credit loops have the right for 3x staking until maturity dates of a credits. 

Boosting Purchasing Power

Due to 100% assurance for redemption by issuers, there is no need for an escrow or aval at any point of shopping with credit loops in Protocol 1. Holders, i.e. providers of goods and services in a loop can benefit from 3x staking until they become endorsers by purchasing goods or services from new holders. By this way, they become endorsers and transfer their 3x staking right to new holders. There is no meaning for an endorser to transfer credit unless the transfer is for shopping since he/she transfer the 3x staking power.

MCL is the only staking system in the World where locked coins allow owners staking while they are circulating among people.

Marmara  v.2.0

Trust Based Credit Loops

Escrow system and escrow services

Solution to Non-redemption in Trust Based Credit Loops

The requirement definitions have been completed for trust-based blockchain solution (Version 2) but not yet been fully implemented on the existing blockchain. The trust-based system works similarly to the existing trust-based analog blockchain in paper-based check checks, but with several preventive programs (3-layer recommendation), self-assurance is provided against the problem of non-payment (defaulting) or bouncing. In the trust-based blockchain system, the issuer creates a credit similar to the banking system. The difference here is that the credit created in blockchain is circulated in a credit loop, in contrast to the bank credit where the credit generally remains as the contract between the bank and the borrower. Non-redemption problem in trust based credit loops is solved in a unique way.

There are several layers of protection against defaulting, i.e. non-redemption. First of all, the issuance and settlement processes of trust based credit loops will be through Escrows acting as responsibility and trust centers. They can have additional guarantees to be used in case of no refunds.

Issuers and endorsers in the credit loop layer will most likely have active/locked coins to be used as a collaterals in case of defaulting. Avalists’ activated funds in community layer may also be used collaterals.

The blockchain fund layer will also be used as a last resort against nonredemption.

Escrow System

In trust-based mode, the issuance or settlement of credit loops are performed by trusted escrow service providers, which act as distributed notaries. Those who provide this intermediary services are called “Escrows”. All issuer nodes in credit loops must verify their data by an escrow service to join the credit loop system. The Escrow system is similar to Notarization system with more responsibilities.

Escrow Services

Mining/staking people can easily use the system with trustless features of Marmara Credit Loops. Data Management is only necessary for necessary people such as credit issuers and for trust based version.

Escrows and avalists in community layer provide an additional layer of trust in the blockchain. Currently, in the analog version of post-dated cheques, cheques are initiated by banks and banks do not issue checks to everyone. In case of promissory notes, avalists are more important. Escrows bear the main responsibility during issuance and settlement of peer-to-peer credits on Marmara system.

Data association for issuers must be through escrows. Escrows may be Web-based escrow services, Crypto Exchanges, Notaries, Post Offices, Law Offices, Credit Unions and even Banks. Not everyone can become an Escrow. Please contact us for details if you want to be an escrow.

To ensure that there is no identity theft in version 2, user (issuer) data should be managed by only through Escrows. This will be done by the Escrows with the their own Know Your Customer procedures, financial credit scoring system etc. Escrows will be responsible during issuance and settlement of trust based credit loops. Therefore, they will have earnings from blockchain fund in third layer planned for Version 2.