EIP-1776: Legal Governance Token Standard

EIPS/eip-1776.md

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+---
+eip: 1776
+title: Legal Governance Token Standard
+author: John D Storey (@j0xhn)
+status: Draft 
+discussions-to: https://ethereum-magicians.org/t/eip-1776-erc20dao-extend-any-dao-framework-for-compliance-with-local-legal-jurisdictions
+type: Standards Track
+category: ERC
+created: 2022-02-20
+requires: 20,173
+---
+
+## Table of contents
+
+<!-- TOC -->
+
+- [Table of contents](#table-of-contents)
+- [Simple Summary](#simple-summary)
+- [Abstract](#abstract)
+- [Motivation](#motivation)
+- [Specification](#specification)
+
+## Description
+Requires that a contract has an "owner", and that this owner has access to applicable functions so that it may easily enact the will of the DAO both on and off chain. 
+
+## Abstract
+While there will be many DAO token standards and patterns to come, this will allow each one to be connected with a trusted third party -- for example a laywer to carry out the will of the DAO -- without requiring all to have the same underlying governance structure. Empowering a sort of "Bring Your Own Governance" mentality.
+
+## Motivation
+Introducing this legal link is a crucial component for the governance of real world assets.  When paired with local jurisdictions will give the ability of a DAO to do real world actions such as list an item for sale, coordinate transportation or handle other "in-person" tasks on behalf of the digital DAO.
+
+## Specification
+The key words “MUST”, “MUST NOT”, “REQUIRED”, “SHALL”, “SHALL NOT”, “SHOULD”, “SHOULD NOT”, “RECOMMENDED”, “MAY”, and “OPTIONAL” in this document are to be interpreted as described in RFC 2119.
+
+The words “governance” or "utility" can be considered synonymous as one of the utilties is the governance.
+
+ERC-1776 (Token Contract)
+interface ERC1776 extends ERC20, ERC173 {
+
+  /**
+  * @dev appends this name to applicable functions
+  */
+    function *_owner (){
+        // place function that is being cloned here with any needed alterations
+    };
+
+    function stakeToTransferOwnership (address newOwnerAddress) public returns (bool){
+        // allows for token holders to vote in a new owner when 50%+ tokens are staked in favor of a particular address
+    }
+  }
+}
+
+## Rationale
+Allowing a third party fixes many problems faced when tokenizing a real world asset (RWA) that needs to interface with existing legal jurisdictions.  Included is the metadata needed to interface with NFT standards with the definition of a DocumentURI.
+
+## Backwards Compatibility
+The standard is ultimately designed to be backwards compatible with any token standard.
+
+## Implementations
+Although an official implementation of the ERC-1776 has not been presented, in the Specifications section some interfaces have been reported which, once implemented correctly and according to the reccomandations, allow to create an asset token compliant with this ERC.
+
+## Security Considerations
+The security considerations mainly concern the role played by the issuers and the admin. If they do not correctly manage their members and allow for profit through non-participation it could fall into a security classification although it is designed to be a utility DAO token.
+
+It also introduces a single point of failure in which an admin could feasibly be attacked and exploited
+
+## Copyright
+Copyright and related rights waived via CC0.
+
+## Citation
+Please cite this document as:
+
+John D. Storey, "EIP-1776: Legal Governance Token Standard," Ethereum Improvement Proposals, no. 1776, January 2022. [Online serial]. Available: {{URL to EIP on github}}