Clear DefinitionsCharter Agreements
1 min read
Pronunciation
[char-ter uh-gree-ments]
Analogy
Think of charter agreements like a company’s articles of incorporation—they lay out who does what, how decisions are made, and how disputes are resolved.
Definition
Formal documents that define the governance, roles, responsibilities, and operational rules of a blockchain consortium or DAO. They serve as the foundational legal and procedural framework.
Key Points Intro
Charter agreements codify the organizational structure and decision-making processes for decentralized networks.
Key Points
Governance structure: Defines voting rights, quorums, and proposal processes.
Roles & duties: Specifies responsibilities of stewards, operators, and members.
Amendment procedures: Outlines how the charter itself can be updated.
Dispute resolution: Establishes mechanisms for handling conflicts or breaches.
Example
A blockchain consortium’s charter agreement might require a two‑thirds majority of member votes to approve protocol upgrades and designate a legal entity for onboarding new institutions.
Technical Deep Dive
Charter agreements are often paired with on‑chain governance smart contracts that enforce proposal submission, voting, and execution. Off‑chain, legal contracts reference those on‑chain rules. Multi‑jurisdictional considerations require parallel ILP (inter‑ledger protocol) clauses for cross‑border operations.
Caveat
Charter agreements may be legally binding off‑chain but require careful alignment with on‑chain code to avoid discrepancies.
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