The new ERC-7281 proposes a way for token sovereignty. The party responsible for a token creates a copy for this token on each (relevant) chain: a xERC-20 token or xToken for short. All legacy versions of the tokens (on any chain where a legacy version is present) can be wrapped via a lockbox into the new xToken. Then the party authorizes bridges to burn and mint these xTokens. The burning and minting can be throttled to manage (bridging) risk. I think this is a good idea because it makes bridged tokens fungible while also managing risks of bridge hacks. Additionally, it removes the need for liquidity pools to convert bridged tokens into valuable/usable tokens. Handling of xTokens The approach of ERC-7281 assigns extra tasks to the parties responsible for tokens, which frequently are DAOs. These parties should be aware of this and perhaps increase the number of involved participants to be able to handle the extra workload. Chains and bridges could facilitate this by sponsering several of the actions. Additionally third parties might offer services to help with these tasks. Tasks for parties responsible for tokens