"A Practical Elimination of Risk" - Chris Odom



Well that’s a very interesting read. It gave me some thoughts on how we can improve the custodial system. This is just a random smattering of superficial ideas without a great deal of thought into the practicality.

  1. Every vote that a NuShare holder makes on a custodians address essentially adds that shareholder as a signer for multi-sig of that address. This builds a chain of signatures to manage the funds of that address

  2. When the vote passes NuBits are immediately created at that address. Now the NuShare holders are effectively account managers for the created NuBits.

This provides some advantages:

  1. NuShares holders will have more control in oversight of the funds. A custodian could not run away with the total sum of the funds. NuShare holders would not allow for that to happen as it hurts their investment.
  2. They can immediately release small portions of the grant. We discussed in the past that custodians can issue smaller grants released out periodically to achieved their goals in short bursts instead of doing it all in one lump sum. This would essentially do the same thing, but would not require further voting. they could release the funds immediately as needed.

There may be other benefits. I’m sure there’s some down sides or even technical impossibilities. Reaching a solution like this could provide shadeholders much more oversight and control of nubits. If signer shareholders decided a custodian is failing to meet their goals maybe they could even choose that the funds are burned, or redirected. Either way it will stay in the hands of several individuals who have a vested interest that they are not abused.

Just some thoughts. Great read.


How many people could multisig support? I think more than 10 is impractical?