Quote from: ryantw on July 01, 2013, 03:51:46 AM

If you are an exchange: have a check and balance with separation when new assets apply. Example:

5 trusted mods review a potential asset in private. The asset pays BTC5 (non-refundable) to the exchange and in turn the exchange pays BTC1 to each mod reviewer. The exchange should not receive a fee in the beginning for this mod review process. This will ensure that the exchange won't waste time on assets that it feels aren't even worth a review.

Asset owner does not know who mods are. Any questions the mods may have are routed through exchange owner to asset owner, then then answer routed back to mods. This ensures separation.

If majority of mods approve the asset (minimum 3/5), then the asset proceeds to final veto stage. The exchange has veto-only power. It can decide to not list the asset even if the mods voted in favor. However, it cannot decide to list the asset if the mods did not vote in favor as it would defeat the purpose of having a mod review in the first place.

If the exchange waives its veto power, thus it agrees to list, then public investors will know that 5 trusted mods reviewed the asset, it was voted in favor by the mods and the exchange was given a chance to veto the listing as well. The exchange will earn fee's once the asset is being traded.

Obviously this isn't a foolproof solution, but maybe a starting point. It will at least include separation of parties and place responsibility on the exchange for ensuring a thorough "vetting" process was followed. Kickbacks, bribes, etc. should not occur since the mods will agree to not contact the asset owner directly, and the asset owner will not know the mods during the review/voting process.

It will be a good thing for the public to know that a structured process is used when assets apply for listing on an exchange. It will also be a good thing for the exchange to have it's investors confidence and a good reputation.

ryantw, good starting points. Can you please post this to https://bitcointalk.org/index.php?topic=125629.0 and http://forum.litecoin.net/index.php/topic,551.0.html ?