A Proposal for Shielded Assets (ZSA/UDA) for DeFi on Zcash

[GGuy]

So earlier in the topic I discussed some issuance mechanisms that might be useful. One of these included on chain voting…

@GGuy

Scenario 3 - Multiparty Minting Tokens using On-chain “voting”

After further reflection it appears we can think of issuance as simply a transaction rather then a specific issuance mechanism. We could have ZSA addresses where assets in a ZSA address are collectively controlled by the token holders.

So rather then having the ability to mint/issue new tokens over a period of time, the asset is minted only once. Someone might simply mint billions of tokens upfront. Then to protect the tokens from malicious action from a single user the tokens are transfered to a DAO (ZSA address) which allows the holders of those ZSA (could be 1 or many) the ability to transfer those tokens by voting.

@GGuy

Transfering to an asset group

Each asset type has an address attached to it. This could simple be “zsa-[asset type number]” or something more complicated. Zcash will allow transfers into these addresses.

Transfering out of an asset group

Imagine a DAO asset where each member holds a share of the tokens. At the time the DAO asset was created the DAOs voted transfer threshold is set (e.g. 50%).

From then on any assets (ZEC or otherwise) transfer into the ZSA can only be transfered when the ZSA members initiate on-chain voting for a specific transfer action and the voting threshold is met.

While I imagine on-chain voting is outside the scope of this grant it does seem to allow, in some form, for many of the issuance mechanisms described to occur. Also, since a DAO could be automatically controlled by nodes these nodes could watch other chain addresses and control assets accordingly.