A hypothetical method for creating Steem endowments that resist embezzlement

This post suggests a method for someone to create an endowment on the Steem blockchain whereby it would be difficult for the recipient to embezzle the principal amount. No blockchain technical changes, escrow arrangements, or custom smart-contracts are required.

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Note: This is not financial or legal advice. I'm speculating about technology, not suggesting a course of action for anyone to follow.

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Financial Endowment:

A financial endowment is a donation of money or property to a nonprofit organization which uses the resulting investment income for a specific purpose. Usually the endowment is structured so that the principal amount is kept intact, while the investment income is available for use...

It occurred to me today that it may be possible to use the Steem blockchain to set up a blockchain analog to a financial endowment that can't be embezzled by the recipient. The process might go something like this:

1. Create two Steem accounts. One for the donor and one for the recipient. Make sure that the donor's keys are extremely high quality.
2. Donor makes a contribution into Steem Power in his/her Steem endowment account.
3. Donor delegates all vests from his/her account to the recipient's account.
4. (get ready to cry) - Burn the keys of the donor's account.
5. Recipient generate income via voting, delegations, posting, etc...
6. Future additions to the endowment would need to be done by creating new accounts, and repeating the steps to fund, delegate, and burn the keys.

At this point, the recipient is free to use the delegated steem power to raise revenue, and to withdraw the proceeds from the delegation as frequently or infrequently as they desire, but the principal is locked in perpetuity.

If these steps are all carried out in the presence of the donor, the recipient, and possibly a witness or notary, it is possible to be reasonably confident that the principal is securely locked.

For example (not saying I'm going to do this, just an example), if I wanted to create an endowment for the Rustin High School Golden Knights Marching Band, I might do it as follows:

1. Create account rgkmbdonor1.
2. Fund that account with Steem Power.
3. Delegate all Steem Power from rgkmbdonor1 to rgkmb.
4. Destroy the keys for account rgkmbdonor1 (crying permitted).
5. Give keys for rgkmb to the band boosters.
6. The band boosters could use the account for voting, posting, and could withdraw all future income, but they would be unable to withdraw the principal amount.
7. If someone else wanted to add to the endowment, they would repeat steps 1 through 4 with a new donor account.

The advantage that this may have over a traditional financial endowment is that technical protections are added to legal protections against embezzlement by the recipient. It may, therefore, (eventually) be a more attractive vehicle for some charitable donors.

Thoughts?

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Note: I REPEAT. This is not financial or legal advice. I'm speculating about technology, not suggesting a course of action for anyone to follow.

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Thank you for your time and attention.

As a general rule, I up-vote comments that demonstrate "proof of reading".

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Steve Palmer is an IT professional with three decades of professional experience in data communications and information systems. He holds a bachelor's degree in mathematics, a master's degree in computer science, and a master's degree in information systems and technology management. He has been awarded 3 US patents.

Steve is also a co-founder of the Steem's Best Classical Music Facebook page, and the @classical-music steemit curation account.