LOGO_CRYPTO_SIGHT

Ether Mixing Service Tornado.Cash Proposed TORN tokens-run Governance System

By Shannon Wilson | December 25, 2020
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Tornado.Cash – the Ethereum mixing solution which finalized completely immutable smart contracts implementation in the start of 2020 – has reportedly put up a proposal for a governance system operating with its TORN tokens.

Specifically, the proposal will reportedly hand over the job of supervising the protocol to its community of users.

An initial batch of 10 million TORN will reportedly be distributed between early users and developers, a DAO treasury and anonymity miners, throughout a period of the next half a decade. 

Anonymity miners reportedly make the service function more efficiently, via offering liquidity in the same manner to liquidity miners in decentralized finance protocols.

However, since users’ deposit details in the pool will be disclosed while employing standard liquidity mining, the proposal would reportedly utilize a two-layer shielded system to ensure privacy.

Users would reportedly collect Anonymity Points (AP) and keep in a private account, which will then be moved into public TORN as soon as the mandatory collecting requirement is met. 

To enable anonymity mining, Tornado.Cash will reportedly need extra metadata, nominally the block numbers for transactions. This can be obtained via adding a proxy in front of the immutable smart contract which captures this data.

This proxy also reportedly functioned as the measure, via which governance proposal, following the acquired approval by a vote of TORN holders, would make adjustments to any of the protocol’s internal parameters.

Despite the immutability feature of the smart contracts, the proxy would allow replacing them with a new version if the community were to opt for.

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