Contracts are widely used in Multi-Sig-Wallets or for DAOs. VeChainThor Nodes can not be transferred to contracts due a restriction in the node-contract.
Lifting the transfer restriction to allow ownership for contracts will allow a widely shared use of VeChainThor Node, especially will it allow to form DAOs arround a single VeChainThor Node.
Changing this behaviour should not have side effects as far as I understand.
I think this is an interesting idea. As you have stated it would expand the options for ownership of economic / x-nodes. As you said one example could be ownership of a economic / x-node by a DAO giving DAO members voting rights in vechain governance and access to a larger generation rate of VTHO which could be used to fund additional DAO activities.
The risk here is that economic / x-nodes get placed into contracts that become “corrupted” leading to the loss of the economic / x-node status and also the funds. I wonder if there is any way to avoid this? To be honest I don’t think so and this is just a risk, some mitigation actions could be taken such as auditing the contract before transferring ownership to that contract. This responsibility as with interacting with all contracts would be on the user.
Wallets can also get lost and as you state, the risk management is the responsibility of the owner and not the network. I believe the potential benefits are absolutely worth it and can add a new layer build by the community on top of the nodes.