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Figure out the most elegant way to increase security token supply when there is a share issuance #10

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Tectract opened this issue Aug 30, 2023 · 0 comments
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enhancement New feature or request help wanted Extra attention is needed Mainnet related to EnergyChain mainnet launch question Further information is requested

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@Tectract
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Tectract commented Aug 30, 2023

relevant cosmos SDK open issue:

feat bank: extend bank keeper by providing a convinient funtion to mint tokens to an account.

We may need to extend the bank module keeper in EnergyChain to allow token supply adjustment functions, as discussed in the above ticket from 2021 on the Cosmos SDK platform repo.

Alternative methods for adjusting token supply including "soft-forking" the chain whenever there is a share issuance of a securitized token (or a share "tokenization" event for an already-existing security). Soft-forking with a "live chain update" to change token supply upwards for a non-staking token is a test that needs to be perfomed on the EnergyChain testnet, to explore this alternative.

NEEDED Features:

  • ability for one authorized account to be able to increase a token supply

AND / OR

  • ability for the staking token stakers (current validator group?) to be able to vote to increase token supply

this second option is more applicable to PRIVATE blockchain environments like EnergChain, where all the staking tokens are held by one entity and would likely not be desirable for a normal / public Cosmos SDK chain

NICE-TO-HAVE Features

  • ability to reduce token supply to deal with token splits (doublings or otherwise) or warrant transfers

  • ability to issue dividends to all security token holders. The dividend would be paid in a second token, possible just a token used as a dividend "receipt" which could then be one-time redeemed for USD via the issuing organization, maybe by sending it back to an authorized account. The dividend cannot be paid in the same token or it would legally be considered a "share split" in modern securities law. So we would need to be able to specify the token to pay the dividend in, the rate at which to pay, and the dividend would be paid out to every token holder proportionally to their security token balance at a certain block-height.

NOTE:

  1. For normal share ISSUANCES we need to be able to increase the token supply by adding tokens to the balance of an authorized account.

  2. for share SPLITS we would want to increase token supply and increase all token-holder balances PROPORTIONALLY

@Tectract Tectract added enhancement New feature or request help wanted Extra attention is needed question Further information is requested Mainnet related to EnergyChain mainnet launch labels Aug 30, 2023
@Tectract Tectract self-assigned this Aug 30, 2023
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Labels
enhancement New feature or request help wanted Extra attention is needed Mainnet related to EnergyChain mainnet launch question Further information is requested
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