Mandatory Authorization establishes a requirement for explicit permission or approval from a designated entity or mechanism before a particular action or transaction can be executed. This control serves to enhance security, maintain governance, and ensure compliance within a system. It prevents unauthorized operations by requiring a verified consent step.
Context
Decentralized autonomous organizations (DAOs) and smart contract systems increasingly integrate mandatory authorization processes for critical operations, such as protocol upgrades or large fund movements. This implementation aims to prevent malicious actions and ensure collective decision-making. Such mechanisms are vital for secure and democratic protocol governance.
The new framework operationalizes systemic risk controls by classifying stablecoin transfers as foreign exchange, mandating full compliance by February 2026.
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