So if the system is extensible, do you envision a situation where the protocol could evolve into a system similar to an opt-in on-chain treasury/ DAO? That’s the first thing that came to mind for me.
This is how I see it happening:
Say you had a large group of XTZ holders coordinate and transfer their XTZ to a single contract that delegates to a baker (virtual, public, or private) with the expectation that the cumulative total of baking rewards earned during a set period of time would fall under ownership of the DAO. After a pre-determined number of cycles pass, all who contributed would be returned their XTZ automatically, and be credited with a token (could be transferrable or non-transferrable) that gives an address holder the right to vote on XTZ distribution contingent on the number of tokens they hold. The original distribution, or permanent distribution if non-transferrable, of tokens would be assessed based on the contributed stake weight during the original time-lock.
Then going forward, these tokens give an individual a proportionate say as to where and for what the XTZ held within the DAO can go towards. (Philanthropic, to support developers, perhaps even putting the XTZ into a CDP like Kolibri whenever it comes out).
What are your thoughts? I feel like this is the way towards an on-chain treasury that the community can govern.
Sort of related reading: https://medium.com/@arthurb/potential-design-for-a-simple-and-evolvable-on-chain-treasury-77cfe2176423
