🏘️The Operation of the MicroCreditToken Interagency Microcredit Platform
1MCT has emerged by drawing inspiration from the proven success of the Grameen Microfinance Model as the most effective financial tool for eradicating poverty. 1MCT aims to unite social investors and the impoverished on a global platform using the Grameen Model. To ensure the success of the 1MCT Project, individuals without access to financial resources will undergo a data verification process based on various indicators such as their entrepreneurial potential, financial data, identity information, and references within a system.
Social investors, after the evaluation processes on the platform are completed, will be able to fund the microcredit requests of individuals in need from anywhere in the world. Funding transactions will take place during the token issuance and lending processes. Social investors and micro-entrepreneurs will create a decentralized community and contribute to this process by putting unused savings to work, thereby reaping specific benefits.
a) A social investor creates a profile
A social investor will create a profile containing the following information: Personal Details, required to create an ERC20 wallet (Name, Address, and official identification number). The profile will then be submitted to the platform where social investors and micro-entrepreneurs can find each other. Know Your Customer (KYC) procedures will be conducted by the platform. KYC procedures will ensure that the MicroCreditToken Interagency Microcredit Platform's social investors are real individuals. These processes will help prevent and identify money laundering, terrorism financing, and other illegal corruption schemes. A social investor wishing to create a profile on the platform must adhere to KYC regulations and anti-money laundering regulations to limit fraud.
b) A social investor awaits loan requests
After successfully creating their account, a social investor will search for potential micro-entrepreneurs. The social investor will be able to see information about the micro-entrepreneur, such as their location, type of business, monthly income, and credit score.
c) Social investor buys $1MCT
Once a social investor purchases $1MCT, they contribute to the United Nations' goal of eradicating poverty worldwide in line with the 2030 Sustainable Development Goals.
At this stage, the social investor has two options:
Immediate Delivery: The social investor can transfer the $1MCT to their wallet.
Term Locking Transaction: The social investor can choose to "stake" their $1MCT:
Stake transactions can be done for 3, 6, 9, or 12 months.
A bonus of 1MCT is given after 3 months, 3% after 6 months, 5% after 9 months, and 10% after 12 months, based on the deposited amount.
Stake transactions can be done at 25%, 50%, 75%, or 100% of the investment.
Social investors can convert their $1MCT to cash on the exchange.
Redemption of Term Locking: Social investors who wish to transfer their $1MCT to their wallet before the term lock is completed will receive their $1MCT without any bonus.
d) The evaluation committee investigates the field partner(9)
The evaluation committee will engage with the micro-entrepreneur to determine if they are suitable for listing on the platform. The assessment process for the field partner to be listed on the platform will involve the following steps:
Initiation of the listing process for the microfinance institution:
Review of the organization's introduction documents (activity report, information files, success stories, audit report, foundation deed, etc.).
Explanation of the processes to be followed on the platform and the service fee policy will be provided to the microfinance institution.
Request for the completion of a financial data sheet (portfolio information) to measure the legality and financial sustainability of the microfinance institution.
Sharing of the Collaboration Criteria of the 1MCT Interinstitutional Microcredit Platform with the microfinance institution:
Request for information on the types of loans, term options, interest rates, or service fees offered by the microfinance institution.
Request for information about the Management Information System (MIS) that the microfinance institution can use to track the loans it disburses.
Request for local bank information, transfer fees, etc., for the country where the microfinance institution operates.
The 1MCT Evaluation Committee will continue to investigate the suitability of collaboration with the microfinance institution.
Once all deficiencies are addressed, and terms are agreed upon, a protocol will be signed.
Additionally, the evaluation committee has the authority to approve or reject the creation of the micro-entrepreneur profile on the platform based on the information provided by the microfinance institution.
e) Field Partner uploads the micro-entrepreneur's profile
The field partner will create the micro-entrepreneur's profile on the platform with the following information: name, address, official identification number, legal documents, guarantor details, repayment plan, a photograph of the micro-entrepreneur, and the requested loan amount. After successfully uploading the profile, a field partner can send an official loan request on behalf of the micro-entrepreneur.
Once the profile is uploaded, a field partner can request a loan from any social investor anywhere in the world. The repayments of microloans will be transferred to the designated digital wallets of the field partners, which are microfinance institutions.
f) Funded by revenue from field partner 1MCT
The income generated from social investors is allocated to field partners for the microfinance fund. The fund, along with a service fee based on the repayment term, is collected from field partners. The principal amount of the collected fund is then reinvested as a microfinance fund for field partners. Fifty percent (50%) of the earned service fee is utilized for platform development, while the remaining 50% is allocated for "buyback"(10) and "burn"(11) activities in the market.
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9 Field partners are microfinance institutions, social enterprises, and non-governmental organizations that operate within impoverished or marginalized areas to review microcredit applications, identify individuals in need of microcredit, and assess their repayment capabilities. Field partners are responsible for the collection of microcredit repayments. When social investors finance microentrepreneurs on the 1MCT platform, these funds will be directed to 1MCT field partners.
10 Buyback is defined as a program where a company repurchases its own shares from the market, thereby reducing the total number of outstanding shares.
11 The burn process involves permanently destroying tokens, rendering them unusable and removing them from circulation in the market.
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