[Question] Decentralization of Default handling

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Hi TrueFi team & community,

I’m interested in understanding whether there are ways we currently can think of that will allow default handling to be decentralized practically & effectively for uncollateralized loans. Currently - if I understand it correctly - in the event of default (be it service or strategic default and if a future version of the model implements debt covenants, technical default) the responsibility of taking legal action lies with the TrustToken organization.

Are there ways of progressively decentralizing this responsibility and process of legal action (renegotiation, refinancing, taking legal/court action, selling off the debt) in the future? Has the community or the TrueFi team been thinking of ways of doing this? I believe this will be critical to truly decentralizing the uncollateralized debt system.

Appreciate your comments & discussion on this,

TNTL

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@TryNotToLose - I agree this is crucial to decentralizing the protocol and it’s definitely something we’ve been thinking about! Will let our credit/legal/strategy teams share some of our thoughts here if they are available.

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Thank you for your response @rafaelcosman ! Really appreciate it. Would love to hear the teams thoughts on how this could be decentralized.