Disputes and Enforcement dApp

Dispute resolution and enforcement of actions against entities that violate the regulations of the community is an important function of health governance.

Where possible, these functions are provided by an external dApp that is integrated into the governance areas of the council dApp.

Dispute Resolution

Many dispute resolutions and/or judicial action dApps exist for use by communities. Built into the Council dApp is the tool provided by Aragon. If this doesn’t suit a particular community they are free to swap it out or integrate with another tool. It is possible that alternative integrations with alternative tools are supported in future depending on available tools.

Covenant Enforcement Actions

In cases where a Real Estate asset is in violation of a covenant, a smart contract will govern the workflow of the enforcement process by which the asset owner is notified of the breach and has a specified time to remedy the breach before further action is taken. If the breach is not remedied the owner is issued a fine. An appeal by the owner is possible via the dispute resolution process.

Each step in the enforcement process is noted on the blockchain so that it may become a matter of public record for the asset.

Foreclosure

Foreclosure on a property will occur when the LTV Ratio of an owner exceeds the Liquidation Threshold.

When this occurs the asset will be placed into the MarketPlace and sold, starting with the lowest value asset. Once the asset is sold, outstanding debts are deducted from the proceeds and the remaining balance is returned to the Owner.

When a liquidated asset is placed in the Marketplace, its sale is restricted for a specific period of time such that the asset owner is the only eligible buyer of the asset. In such cases, the asset owner has the option to purchase the asset back, thus repaying outstanding debts.