Lets Meet

Marmara Credit Loops

About Marmara Credit Loops

Marmara Chain started as a joint project between Marmara University Open Innovations Lab and Komodo Platform Technologies. The brief history may be found here.


Marmara Credit Loops, or MCL is an UTXO based coin with 25% PoW and 75% Staking with a unique technology and idea based on the credit loops that have a concrete use case in real economy exceeding trillion USD market on papers acting as analog chain.

Marmara Credit Loops may be explained based on the famous town analogy in an amusing brainteaser where people are stuck in debt due to insufficient supply of money. Credit Loops not only solve the problem of those people but also benefit them with the blockchain rewards. In the first protocol, suppose the tourist issues 100 MCL as credit with 100% collateralization. Then the credit in the loop visits each node while rewarding the pair of initial issuer of credit and each holder node that transfers/endorses the credit in the loop while shopping. This town story happens as analog chain on papers known as promissory notes and post-dated cheques which construct nearly half GDPs such as in Turkey and India. The terminology and how a credit loop is conducted is explained in here.

Suppose Bitcoin mining system is reprogrammed with 75% staking where staking rewards are mostly (via 3x staking) distributed to people who make shopping with credit loops. The system runs on an independent smart chain called Marmara Chain that uses UTXO based smart contract technologies known as cryptoconditions powered by Komodo Platform.See here for the tech.


There are 2 DeFi Protocols in Marmara Chain. They are;

  1. FULLY COLLATERALIZED CREDITS: The current version works based on full collateralization where the first issuer node like hotel customer in story issues the full credit based on agreement between the issuer and the first credit holder (hotel owner in the story) with a settlement date they wish. The credit is split into 2 UTXOs and locked on Marmara Blockchain for the purpose of staking by issuer and holder who can later endorse the credit during shopping. The system rewards pair of issuer and holder(s) in the shopping order with 3x boosted staking power. The endorsement of credit in a loop is only meaningful during shopping since endorser transfers the 3x staking power to new bearer/holder of credit.

  2. ZERO-OR UNDER-COLLATERALIZATION CREDITS: The second protocol works very similar to analog blockchain working as post-dated cheques and promissory notes that have usually no or limited collateralization. The system can be used not only for post-dated cheques or promissory notes but also for any type of credits on a peer-to-peer nature basis. The second protocol is based on adding trust components known as community escrows into system powered with crypto exchange capabilites. Those escrows have to provide certain amount of collateralization to be used against non-redemption during settlement. The Protocol 2 provides a dynamic escrow system inspired from Komodo Notarization system but with credit functionalities.


MCL is the first DeFi that works for the real world items, it also migrates to blockchain a system that people have used for centuries. The initial version shows what is possible and it will be expanding in its popularity when the second version will be released. Actually – James Lee (jl777), Komodo Platform Founder and Marmara Chain Co-Founder

Marmara Credit Loops (MCL) is the first and the only Decentralized Finance (DeFi) system in the World designed to run in real economy. The system rewards buyers and sellers when shopping with credit loops instead of cash. – Prof.Dr.Gültekin ÇETİNER, Marmara Chain Founder

I am a blockchain core developer in Komodo, engaged in development of cryptocondition modules, aka Komodo Antara custom consensus technology. I contributed to the Marmara custom consensus and staking code, performed the Marmara chain extensive testing and developed statistical rpcs. I am very exciting to participate in getting on chain real world economic objects like Turkish vadeli checks and helping people use blockchains. – Dmitriy MENSHCHIKOV (Dimxy), KomodoPlatform Core Developer, Marmara Smart Chain CC Developer

MCL works as an independent smart chain with a 25% mineable and 75% stakeable coin integrated with two DeFi protocols. The system uses UTXO based Turing Complete Smart Contracting system powered by Komodo Platform technologies.

Marmara Chain is protected against 51% attacks by means of Komodo dPoW technologies which recycle the hash power of Bitcoin or other network by backing up independent blockhains.

Staking could only be done when users lock their coins in one of the two different funds, namely; “Activated” and “Locked in Credit Loop” (LCL) funds. When coins are locked in LCL funds, both issuer and holder(s) of credit have the chance for 3x staking. The system has a unique solution for coins locked in credit loops unlike other staking systems. Locking coins into credit loops for staking does not make them static. Instead, they can be circulated while they are locked and doing 3x staking via endorsement. The process of credit endorsement is designed to assure that transfer is only meaningful while shopping.

Credit Loops work also similar to post-dated cheques in cultures where redemption is not made before maturity date of a cheque and hence making collateralization unnecessary. The system consists of two protocols; 100% collateralization and under- or zero-collateralization. The first protocol is based on 100% collateralization. It is an interest-free system providing the negative entropy established through the mining and staking rewards on the same chain. The issuer provides the coins required for 100% collateralization until the maturity date of a credit loop. The second protocol is based on money creation with many different fiat and crypto currencies as well as assets such as gold and silver. The second protocol works by merging the trustless blockchain with communities and escrows who provide the required trust layer into system. The protocol 2 was designed to run in a multilaw structure to enable the use universally in any country and community. A third layer of blockchain fund integrated with escrows is maintained as a kind of distributed notarization system to further protect holders of credits against non-redemption.


Marmara Chain has an estimated block time interval of 1 minute and 30 MCL per block as reward. To provide liquidity due to locked coins, a fixed amount of 15 millions are set annually without halving.

Marmarca Chain has 3 different coin types for which statistics are given online on stats page in any of explorers such as Stats on Marmara Explorer 2.

  1. Normal Coins: They are spendable coins which circulate freely to use as cash during shoppings. Normal coins have no staking power.
  2. Activates Coins: These coins are locked and cannot circulate during staking. They can be unlocked any time to become normal. Once locked they have 1x staking power. They are very easy to unlock any time. Once unlocked, they lose staking power. The half blocks come out as activated/locked ready for 1x staking. The mere purpose of activated coins are to provide collateralization needed in protocol 2. In-Loops: These coins are locked in credit loops which give the power of 3x staking. The maturity of credit is defined during issuance of credit and cannot be changed until that block height. The only thing to transfer a credit in a credit loop is to make shopping, i.e. to buy real world items. This is due to transfer of 3x staking when transferring/endorsing a credit to a new holder/bearer. Transfer is only meaningful to buy. Endorser loses the right for 3x staking to new holder.