Tornado.Cash, the Ethereum blending service launched earlier this year implemented completely immutable smart contracts, has proposed a governance system powered by its own TORN tokens.
According to a December 18 postthe proposal will place the management of the protocol in the hands of the user community.
An initial distribution of 10 million TORN will be split between early users and developers, a DAO treasury and anonymity miners over the next five years.
Anonymity miners increase the efficiency of the service and act by providing liquidity comparable to that of liquidity miners in decentralized financial protocols.
However, since standard liquidity mining would reveal information about the user’s deposits in the pool, the proposal would implement a two-stage ring-fenced system to preserve privacy.
Users would collect Anonymity Points (AP) on a private account, which can be transferred to a public TORN once enough has been collected.
To enable anonymity mining, Tornado.Cash requires additional metadata, such as the block numbers for transactions. This is achieved by adding a proxy before the immutable smart contract that captures this data.
This proxy is also the method by which governance proposals, after being approved by a vote of TORN holders, would change the internal parameters of the protocol. While the smart contracts are immutable, the proxy would allow them to be replaced with a new version if the community decided.
At this stage, the code for the proposed change has been written and published on GitHub for the community to consider.