What is the worst thing a director could do before his power is removed?
What if one director was really controlling X% of total block generation?
If the worst thing they could do is not so bad, cool, I like it.
If though directors or a group of colluding directors could do something really bad then what about having a decentralised fail-safe dispute resolution system?
As you know Truthcoin Prediction market is apparently able to reach decentralised consensus on truth using SVD.
TBH I don't understand enough about it yet, but I feel it may be inefficient (speed-wise) to apply to many betting markets and certainly impossible/ridiculous to consider using with regards to block signing, however it looks like it can be a great tool to resolve a dispute or make a truly decentralised decision.
So provided the cost/difficulty associated with lodging a dispute is incredibly high and the cost for lodging a false dispute is incredibly high then we could perhaps have a fairly centralised but super-fast system knowing that if something did go wrong it would be possible to reverse/fix it using a truly decentralised consensus of the entire network?
Example:
So imagine 2 Big bitcoin mining pools colluded and performed a huge double spend at block X. What if even a small 1% hashing pool could risk it's funds and lodge a dispute. Then block generation would be paused, to vote on - 'Remove Mining Pool A&D, rewind to Block X-1'. Then the entire Bitcoin network (holders of Bitcoin) could vote. The Truthcoin SVD thingy would say consensus is yes. Then the network would have been able to resolve that dispute and the 2 Big Mining pools would have failed. (If the 1% hashing pool had lodged a false dispute, in the process holding up the network for a few hours, then they would lose a fortune in funds that they would have had to commit to lodge the dispute in the first place, thereby ensuring nobody would ever hold up the network unnecessarily.)
Edit: (As in we delegate our vote to a director, except during a dispute, in which case we make votes as individual shareholders again - if we are available to vote in the time window allowed for a dispute - and then SVD determines consensus.)
Um, I'm not very technical, but something like that.