A Life Token Executor is designated using a 2-Party Multisignature Escrow Account with Time Lock & Recovery.
Use Case Scenario
Cleanshave donates 500 XH5 tokens to Dr. Q, under the condition that she’ll be the executor of his digital estate after he has passed. Cleanshave doesn’t completely trust Dr. Q with immediate access to his account, so he suggests an escrow account renewed every year. Should a problem arise where Dr. Q is no longer able to perform as executor, a new executor could be found annually.
Since it is unlikely that Cleanshave will die within the next year he has an option to reclaim the tokens and reset the contract before Dr. Q is given the opportunity to do the same. This way he can decide on the executor of his digital estate up until his death.
Should he meet his demise before reclaiming his tokens Dr. Q would have the opportunity to claim them, receiving the Private Keys to his digital estate, including access to social media accounts for updating profiles in a manner suggested by an encrypted Last Will. (Perhaps stored in a Keybase account.)
In this way, Cleanshave is the Testator, the person giving away their assets by executing the smart contract. And Dr. Q becomes both the Executor and Trustee, in that it is her responsibility to manage the assets in accordance with wih Cleanshave’s wishes. She is also responsible for the liquidation of the account to purchase Life Tokens held by Beneficiaries.
An escrow agreement is created between two entities: the Testator – the entity funding the agreement, and the Executor – the entity receiving the funds at the end of the contract, which includes the Private Keys for the Life Token account.
Three accounts are required to execute a time-locked escrow contract between the two parties: a source account, a destination account, and an escrow account. The source account is the account of the Testator that is initializing and funding the escrow agreement. The destination account is the account of the Executor that will eventually gain control of the escrowed funds. The escrow account is created by the Testator and holds the escrowed funds during the lock-up period.
Three periods of time must be established and agreed upon for this escrow agreement: a Lock-up period, during which neither party may manipulate (transfer, utilize) the assets, an Unlock period, after which the Testator has the ability to recover the escrowed funds from the escrow account, and a Recovery period, a date after the Unlock period where the Executor has the ability to recover the escrowed funds, which include the Private Key to the Trustator’s Life Token Account.
First, an Escrow account is created. The Executor is added as a signer. An Unlock Date is set in which the Testator can recover the funds in the Escrow Account and set a new Unlock Date and/or Executor. A Recovery Date is set in which the Executor can access the Life Tokens in Escrow should the Testator be unable to complete this action.
To summarize: if the Unlock transaction is not submitted by the Testator, then the Recovery transaction is submitted by the Executor after the recovery period.
Read the XH5 Grey Paper to learn more about the Life Token Experiment