From 32bf65a1d8be7b9acde583b27da79f7ec9458403 Mon Sep 17 00:00:00 2001
From: zero <zero@zero>
Date: Tue, 30 Jan 2024 10:38:44 +0100
Subject: [PATCH] DEP 0003: Token Mint Authorization

---
 doc/src/SUMMARY.md  |  5 +--
 doc/src/dep/0003.md | 80 +++++++++++++++++++++++++++++++++++++++++++++
 2 files changed, 83 insertions(+), 2 deletions(-)
 create mode 100644 doc/src/dep/0003.md

diff --git a/doc/src/SUMMARY.md b/doc/src/SUMMARY.md
index a6f3da5de..427256c90 100644
--- a/doc/src/SUMMARY.md
+++ b/doc/src/SUMMARY.md
@@ -65,8 +65,9 @@
 
 # DEP
 
-- [DEP 0001: Version Message Info](dep/0001.md)
-- [DEP 0002: Smart Contract Composability](dep/0002.md)
+- [DEP 0001: Version Message Info (accepted)](dep/0001.md)
+- [DEP 0002: Smart Contract Composability (deprecated)](dep/0002.md)
+- [DEP 0003: Token Mint Authorization (draft)](dep/0003.md)
 
 # Specs
 
diff --git a/doc/src/dep/0003.md b/doc/src/dep/0003.md
new file mode 100644
index 000000000..84660bf54
--- /dev/null
+++ b/doc/src/dep/0003.md
@@ -0,0 +1,80 @@
+# DEP 0003: Token Mint Authorization
+
+```
+status: draft
+```
+
+## Current Situation
+
+`Money::token_mint_v1()` allows minting a given token with the token ID
+calculated as a commitment to the public key as
+$$ T = \t{PoseidonHash}(69 || \mathcal{X}(P) || \mathcal{Y}(P)) $$
+The ability to freeze minting tokens is offered. Let $Γ$ be the set of
+frozen token IDs. When attempting to call mint, if $T ∈ Γ$, then the contract
+will fail.
+
+The amount being minted is publicly visible in the params.
+
+## Motivation: Limitations of Current Approach
+
+The main issue is contracts are unable to issue tokens. The current design
+mandates the holder of a public key to issue the token.
+
+Secondarily the token ID and amount being minted is visible breaking anonymity.
+
+To fix the first issue, a basic fix would be allow setting an auth parent
+contract for a specific token ID, but this does not fix the second issue.
+
+## Proposal: Introspective Params
+
+The authors preferred design goes for maximum generality, while
+preserving existing functionality.
+
+Firstly the token ID is changed to be calculated as
+$$ T = \t{PoseidonHash}(\t{auth\_parent}, \t{user\_data}, b) $$
+where $b$ is a blinding factor.
+
+### `Money::token_mint_v1()`
+
+We now define `Money::token_mint_v1()`. Let the params be coins $𝐂 = (Cᵢ)$
+and `auth_parent`.
+For each coin $Cᵢ$, let there be corresponding proofs $πᵢ$ such that
+
+**Token ID integrity** &emsp; $T$ is calculated correctly committing to
+`auth_parent`.
+
+**User data commitment** &emsp; $U = \t{PoseidonHash}(u, bᵤ)$
+
+**Coin commitment integrity** &emsp; $Cᵢ = \t{PoseidonHash}(…, T, …)$
+
+Additionally the contract checks that `auth_parent` is the function ID of
+the parent caller.
+
+The sole purpose of this call is to create a set of coins whose token ID
+is a valid commitment, containing the field `auth_parent` which is publicly
+revealed. Then it checks the parent caller matches this field.
+
+### `Money::auth_mint_v1()`
+
+In the interests of preserving the current functionality with minimal changes,
+we provide a default auth module for use with token minting.
+
+This provides an upgrade path to a future design with stronger anonymity
+guarantees such as hiding the token ID from the network.
+
+The contract performs the following checks:
+
+* Reveals the token ID $T$ publicly.
+* Checks $T ∉ Γ$, the set of frozen token IDs.
+* Constructs a pedersen commit $V$ to the value in the coin, along with a proof.
+  This allows auditing the supply since all commitments are linked publicly with
+  the token ID.
+* Unwrap the `user_data` exported from `Money::token_mint_v1()` which should
+  be a commitment to the public key. Prove ownership of the public key.
+
+### `Money::auth_mint_freeze_v1()`
+
+Adds the token ID $T$ to the set of frozen token IDs $Γ$.
+The caller must prove ownership of the public key which is set in the
+`user_data` field of the token ID.
+