Share Owner Tracking
Shares Outstanding Reporting
In the realm of personally owned blockchains as described in Island Life, the shares of the blockchain represent a form of indebetedness of the blockchain owner to the holder of the shares. The value of those shares can be heavily impacted by the number of shares outstanding vs the number of shares held by the owner. For instance, Ziggy's ZIC shares represent EC$100,000,000 worth of pledges to shareholders, but only the outstanding shares need to have backing funds from which Ziggy can repay shareholders on demand. It is important to Victor that he be able to reliably track which shares of ZIC are outstanding and which Ziggy himself holds. Ziggy can (and does) record periodic transactions in which he assigns all of his shares to himself under new public keys, in part to reset expiration timers and in part to reassure Victor that he still has possession of the valuable secrets.
To better support AOI, and also to make Victor's automated auditing software simpler, there is this protocol for Share Owner Tracking which users, especially blockchain owners, can employ to declare their personal ownership of multiple share blocks recorded in the chain. The Genesis Block starts with a single block of all shares, owned by the creator of the Genesis Block. When those shares are assigned, often the owner will assign some of the shares back to themself, under a new key. To maintain a record of ownership, proving the retention of certain shares, the participant receiving shares may include, in addition to their AO_AUTH_SIG, an AO_SOT_SIG which provides Share Ownership Tracking - signing the received shares with a recent secret key of the share owner. For blockchain owners, that secret key could always be the secret key used to sign the Genesis Block, but it would be better for it to track forward to more recent keys, either in a chain for shares retained during transactions, or jumping back to a recent set of owned shares in the event of shares being returned from old transactions, possibly passing through multiple owners before "coming home."
In the case of blockchain owners, each new block should include a SOR: Shares Outstanding Record which accurately describes the number of shares currently held by the blockchain owner. Note that other share owners on the blockchain have the option to declare their cumulative position through use of AO_SOT_SIG records, or not if they have no need for such declaration. If a blockchain is "owned" by multiple parties, perhaps like ZIC in the case of Ziggy and Peter, then they both could keep separate records of the number of shares each holds personally, updated in SOR records in each block.
The value of "personal debt" might well be represented by a sliding scale, in the case of Bob his lowest ASK price for BCG might increase incrementally for each additional BCG sold out of his holdings, while investors might incrementally decrease their top BID price for each BCG which Bob has sold, so the market reaches eqilibrium where those opposing gradients meet.
1 August 2018
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