ERC20 - how does a company protect the coin from the original owner?

99john9999john99 Member Posts: 1
If you set up an ERC20 token for say XYZcompany, the person setting it up then has the private key and can send tokens at will to their private account.

Doing it jointly with others just proliferates the problem.

Is it possible to have a mechanism that requires multiple sign-offs before large or frequent payments can be made?

Thanks - apologies if I'm in the wrong place (should there be ERC20 and 0x categories here?) or have misunderstood something.


  • bitsanitybitsanity Member Posts: 8
    The person setting it up could/should transfer the coins from his/her own wallet to somewhere and not hold them all. If something were to happen to that person then the coins would effectively be locked, maybe forever.

    The deployer might divide the private key of his/her account into shards using Shamir's Secret Sharing and distribute the shards to a set of responsible people. Since those folks might also disappear it would be best to set it up so that N of M shards are needed to reconstruct the key.

    Another way to control assets is to write up a 'treasury' smart contract to hold ether and tokens, and to release those assets only if some number of accounts vote for it, a poor-man's multisig wallet. ERC763 for example.

    Or maybe it is possible or soon will be to set up a proper Ethereum multisig account (not sure)
Sign In or Register to comment.