IV - Operational Transparency
Statement
The token must include provision to disclose its operations to any stakeholder at any time.
Non-compliant Use Cases
- IV - 1. Token source code as well as accessory dependencies must be easily available and leave not room for interpretation
- IV - 2. Operations performed by the Token Issuer over the token deployment must be recorded and disclosed
- IV - 3. Users must be notified beforehand about changes in token behaviour and allowed withdraw without lose of value before these changes are applied
- IV - 4. The issuer can hide the operations as long as token integrity is guaranteed
- IV - 5. The issuer can hide the identity of holders under his compliance responsibility
- IV - 6. The issuer can include compliance mechanisms at his reputational risk
Solutions
IV - 1. Token source code as well as accessory dependencies must be easily available and leave not room for interpretation
IV - 2. Operations performed by the Token Issuer over the token deployment must be recorded and disclosed
Description 1
| ERC | Title | Description |
|---|---|---|
| ERC-7776 | Transparent Financial Statements | Open Transparent Financial Data such as Revenue, Costs of Goods Sold, Operating Expenses, EBITDA and Earnings Per Share for all Investors. |
| ERC-7512 | Onchain Representation for Audits | Proposal to define a contract parseable representation of Audit reports. |
| ERC-5646 | Token State Fingerprint | Unambiguous token state identifier |
| EIP-2566 | Human Readable Parameters for Contract Function Execution | New Ethereum RPC method eth_sendTransactionToContractFunction that parallels eth_sendTransaction but allows for human-readable contract function execution data to be displayed to users. |
| ERC-2477 | Token Metadata Integrity | This specification defines a mechanism by which clients may verify that a fetched token metadata document has been delivered without unexpected manipulation. |
| ERC-8056 | Scaled UI Amount Extension for ERC-20 Tokens | Equity Token support for Stock Splits |
IV - 3. Users must be notified beforehand about changes in token behaviour and allowed withdraw without lose of value before these changes are applied
IV - 4. The issuer can hide the operations as long as token integrity is guaranteed
Description 2
IV - 5. The issuer can hide the identity of holders under his compliance responsibility
The level of privacy is determined by the underlying networks where the token is deployed. This is a configuration issue for the Token Issuer. Privacy on token holders must not be in jeopardy with Transparency on token operations
| ERC | Title | Description |
|---|---|---|
| ERC-7984 | Confidential Fungible Token | Confidential fungible tokens use an account-based accounting model while maintaining the confidentiality of transfer amounts and balances. |
| ERC-7722 | Opaque Token | A token specification designed to enhance privacy by concealing balance information. |
| ERC-8065 | Zero Knowledge Token Wrapper | Enables any token to be wrapped, allowing secretly burnt tokens to be reminted — making privacy a native feature of every token. |
IV - 6. The issuer can include compliance mechanisms at his reputational risk
Different juristictions apply different levels of compliance. the token issuer must have the tools, out of the box, to decide what level of compliance is suitable for his token.
| ERC | Title | Description |
|---|---|---|
| ERC-2980 | Swiss Compliant Asset Token | An interface for asset tokens, compliant with Swiss Law and compatible with [ERC-20](./eip-20.md). |
| ERC-884 | DGCL Token | An ERC-20 compatible token that conforms to Delaware State Senate, 149th General Assembly, Senate Bill No. 69: An act to Amend Title 8 of the Delaware Code Relating to the General Corporation Law, henceforth referred to as ‘The Act’. |