refactor(crypto): extract governance vote message and verification helpers

- Add `rekey.proto` with `ContributePassphrase` / `ContributeRecoveryPassphrase` / `RekeyResult`
- Wire `rekey` as a 4th vault stream payload in `vault.proto` and gRPC dispatch
- Add `RekeyRootKey` message to `Vault` actor: generates new random seal key, re-encrypts root key, writes new `root_key_history` row
- Add `StartRekey`, `ContributeRekey`, `ContributeRecoveryRekey` messages to `VaultCoordinator`; `finalize_rekey` uses threshold-1 fast path identical to bootstrap
- `execute_replace_operator` now UPDATEs `operator_identity.public_key` in-place (avoids FK constraint violation), deletes stale `operator` share row, then triggers `StartRekey`
- `execute_update_shamir_parameters` triggers `StartRekey` instead of warning stub
- `ProposalKind::ReplaceOperator` carries `old_operator_id`; encode/decode updated accordingly
- `GlobalActors::spawn` extracts `vault_coordinator` before `Ok(Self { … })` so it can be cloned into `ProposalManager::new`
- Add `handle_rekey` in session handlers forwarding passphrase contributions to `VaultCoordinator`
- Fix test: rename `replace_operator_inserts_identity_row` → `replace_operator_updates_pubkey_and_starts_rekey`, assert count stays 1 and pubkey is updated

protobufs/operator/governance.proto

@@ -2,6 +2,8 @@ syntax = "proto3";
 
 package arbiter.operator.governance;
 
+import "google/protobuf/empty.proto";
+
 message Request {
   oneof payload {
     CreateProposalRequest create = 1;
@@ -13,14 +15,13 @@ message Request {
 message CreateProposalRequest {
   oneof kind {
     ApproveSdkClientPayload         approve_sdk_client          = 1;
-    GrantWalletAccessPayload        grant_wallet_access         = 3;
+    GrantWalletAccessPayload        grant_wallet_access         = 2;
-    ApproveServerUpdatePayload      approve_server_update       = 4;
+    ReplaceOperatorPayload          replace_operator            = 3;
-    ReplaceOperatorPayload          replace_operator            = 5;
+    google.protobuf.Empty           trigger_rekey               = 4;
-    UpdateShamirParametersPayload   update_shamir_parameters    = 6;
+    ApprovePersistentGrantPayload   approve_persistent_grant    = 5;
-    ApprovePersistentGrantPayload   approve_persistent_grant    = 7;
+    ApproveOneOffTransactionPayload approve_one_off_transaction = 6;
-    ApproveOneOffTransactionPayload approve_one_off_transaction = 8;
   }
-  optional uint32 ttl_secs = 2;
+  optional uint32 ttl_secs = 7;
 }
 
 message ReplaceOperatorPayload {
@@ -28,12 +29,6 @@ message ReplaceOperatorPayload {
   bytes new_pubkey      = 2;
 }
 
-message UpdateShamirParametersPayload {
-  uint32 new_n = 1;
-}
-
-message ApproveServerUpdatePayload {}
-
 message ApproveSdkClientPayload {
   int32 client_id = 1;
 }

server/Cargo.lock

@@ -24,7 +24,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d122413f284cf2d62fb1b7db97e02edb8cda96d769b16e443a4f6195e35662b0"
 dependencies = [
  "crypto-common 0.1.7",
- "generic-array",
+ "generic-array 0.14.7",
 ]
 
 [[package]]
@@ -707,6 +707,7 @@ dependencies = [
  "memsafe",
  "ml-dsa",
  "rand 0.10.1",
+ "strum 0.28.0",
  "thiserror",
  "x-wing",
 ]
@@ -769,8 +770,10 @@ dependencies = [
  "mutants",
  "pem",
  "proptest",
+ "prost",
  "prost-types",
  "rand 0.10.1",
+ "rand_core 0.6.4",
  "rcgen",
  "restructed",
  "rstest",
@@ -786,6 +789,7 @@ dependencies = [
  "tonic",
  "tracing",
  "tracing-subscriber",
+ "vsss-rs",
  "x25519-dalek 2.0.1",
 ]
 
@@ -1283,7 +1287,7 @@ version = "0.10.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "3078c7629b62d3f0439517fa394996acacc5cbc91c5a20d8c658e77abd503a71"
 dependencies = [
- "generic-array",
+ "generic-array 0.14.7",
 ]
 
 [[package]]
@@ -1612,8 +1616,22 @@ version = "0.5.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "0dc92fb57ca44df6db8059111ab3af99a63d5d0f8375d9972e319a379c6bab76"
 dependencies = [
- "generic-array",
+ "generic-array 0.14.7",
  "rand_core 0.6.4",
+ "serdect 0.2.0",
+ "subtle",
+ "zeroize",
+]
+
+[[package]]
+name = "crypto-bigint"
+version = "0.6.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "96272c2ff28b807e09250b180ad1fb7889a3258f7455759b5c3c58b719467130"
+dependencies = [
+ "num-traits",
+ "rand_core 0.6.4",
+ "serdect 0.3.0",
  "subtle",
  "zeroize",
 ]
@@ -1624,7 +1642,7 @@ version = "0.1.7"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "78c8292055d1c1df0cce5d180393dc8cce0abec0a7102adb6c7b1eef6016d60a"
 dependencies = [
- "generic-array",
+ "generic-array 0.14.7",
  "rand_core 0.6.4",
  "typenum",
 ]
@@ -1927,7 +1945,7 @@ version = "0.9.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d3dd60d1080a57a05ab032377049e0591415d2b31afd7028356dbf3cc6dcb066"
 dependencies = [
- "generic-array",
+ "generic-array 0.14.7",
 ]
 
 [[package]]
@@ -2007,7 +2025,7 @@ dependencies = [
  "digest 0.10.7",
  "elliptic-curve",
  "rfc6979",
- "serdect",
+ "serdect 0.2.0",
  "signature 2.2.0",
  "spki 0.7.3",
 ]
@@ -2040,16 +2058,32 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "b5e6043086bf7973472e0c7dff2142ea0b680d30e18d9cc40f267efbf222bd47"
 dependencies = [
  "base16ct",
- "crypto-bigint",
+ "crypto-bigint 0.5.5",
  "digest 0.10.7",
  "ff",
- "generic-array",
+ "generic-array 0.14.7",
  "group",
+ "hkdf",
  "pkcs8 0.10.2",
  "rand_core 0.6.4",
  "sec1",
- "serdect",
+ "serdect 0.2.0",
  "subtle",
+ "tap",
+ "zeroize",
+]
+
+[[package]]
+name = "elliptic-curve-tools"
+version = "0.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1de2b6fae800f08032a6ea32995b52925b1d451bff9d445c8ab2932323277faf"
+dependencies = [
+ "elliptic-curve",
+ "heapless",
+ "hex",
+ "multiexp",
+ "serde",
  "zeroize",
 ]
 
@@ -2123,6 +2157,7 @@ version = "0.13.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "c0b50bfb653653f9ca9095b427bed08ab8d75a137839d9ad64eb11810d5b6393"
 dependencies = [
+ "bitvec",
  "rand_core 0.6.4",
  "subtle",
 ]
@@ -2323,6 +2358,17 @@ dependencies = [
  "zeroize",
 ]
 
+[[package]]
+name = "generic-array"
+version = "1.4.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "dab9e9188e97a93276e1fe7b56401b851e2b45a46d045ca658100c1303ada649"
+dependencies = [
+ "rustversion",
+ "serde_core",
+ "typenum",
+]
+
 [[package]]
 name = "getrandom"
 version = "0.2.17"
@@ -2406,6 +2452,15 @@ dependencies = [
  "tracing",
 ]
 
+[[package]]
+name = "hash32"
+version = "0.3.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "47d60b12902ba28e2730cd37e95b8c9223af2808df9e902d4df49588d1470606"
+dependencies = [
+ "byteorder",
+]
+
 [[package]]
 name = "hashbrown"
 version = "0.12.3"
@@ -2446,6 +2501,16 @@ version = "0.17.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "4f467dd6dccf739c208452f8014c75c18bb8301b050ad1cfb27153803edb0f51"
 
+[[package]]
+name = "heapless"
+version = "0.8.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0bfb9eb618601c89945a70e254898da93b13be0388091d42117462b265bb3fad"
+dependencies = [
+ "hash32",
+ "stable_deref_trait",
+]
+
 [[package]]
 name = "heck"
 version = "0.5.0"
@@ -2473,6 +2538,15 @@ dependencies = [
  "arrayvec",
 ]
 
+[[package]]
+name = "hkdf"
+version = "0.12.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7b5f8eb2ad728638ea2c7d47a21db23b7b58a72ed6a38256b8a1849f15fbbdf7"
+dependencies = [
+ "hmac 0.12.1",
+]
+
 [[package]]
 name = "hmac"
 version = "0.12.1"
@@ -2543,6 +2617,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "08d46837a0ed51fe95bd3b05de33cd64a1ee88fc797477ca48446872504507c5"
 dependencies = [
  "ctutils",
+ "serde",
  "typenum",
  "zeroize",
 ]
@@ -2808,7 +2883,7 @@ version = "0.1.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "879f10e63c20629ecabbb64a8010319738c66a5cd0c29b02d63d272b03751d01"
 dependencies = [
- "generic-array",
+ "generic-array 0.14.7",
 ]
 
 [[package]]
@@ -2947,15 +3022,15 @@ dependencies = [
  "ecdsa",
  "elliptic-curve",
  "once_cell",
- "serdect",
+ "serdect 0.2.0",
  "sha2 0.10.9",
  "signature 2.2.0",
 ]
 
 [[package]]
 name = "kameo"
-version = "0.20.0"
+version = "0.22.2"
-source = "git+https://github.com/hdbg/kameo.git?rev=805b417#805b41783fe90b54827ecad142b422c7a9b69b9a"
+source = "git+https://github.com/hdbg/kameo.git?rev=17af90e3#17af90e3ae95fc6f89fa31a2f1b9506ac127f0b7"
 dependencies = [
  "downcast-rs",
  "dyn-clone",
@@ -2968,8 +3043,8 @@ dependencies = [
 
 [[package]]
 name = "kameo_actors"
-version = "0.5.0"
+version = "0.8.1"
-source = "git+https://github.com/hdbg/kameo.git?rev=805b417#805b41783fe90b54827ecad142b422c7a9b69b9a"
+source = "git+https://github.com/hdbg/kameo.git?rev=17af90e3#17af90e3ae95fc6f89fa31a2f1b9506ac127f0b7"
 dependencies = [
  "futures",
  "glob",
@@ -2980,14 +3055,13 @@ dependencies = [
 
 [[package]]
 name = "kameo_macros"
-version = "0.20.0"
+version = "0.21.1"
-source = "git+https://github.com/hdbg/kameo.git?rev=805b417#805b41783fe90b54827ecad142b422c7a9b69b9a"
+source = "git+https://github.com/hdbg/kameo.git?rev=17af90e3#17af90e3ae95fc6f89fa31a2f1b9506ac127f0b7"
 dependencies = [
- "darling 0.23.0",
  "heck",
  "proc-macro2",
  "quote",
- "syn 2.0.117",
+ "syn 3.0.4",
 ]
 
 [[package]]
@@ -3290,6 +3364,20 @@ dependencies = [
  "zeroize",
 ]
 
+[[package]]
+name = "multiexp"
+version = "0.4.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7ec2ce93a6f06ac6cae04c1da3f2a6a24fcfc1f0eb0b4e0f3d302f0df45326cb"
+dependencies = [
+ "ff",
+ "group",
+ "rand_core 0.6.4",
+ "rustversion",
+ "std-shims",
+ "zeroize",
+]
+
 [[package]]
 name = "multimap"
 version = "0.10.1"
@@ -3321,6 +3409,20 @@ dependencies = [
  "windows-sys 0.61.2",
 ]
 
+[[package]]
+name = "num"
+version = "0.4.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "35bd024e8b2ff75562e5f34e7f4905839deb4b22955ef5e73d2fea1b9813cb23"
+dependencies = [
+ "num-bigint",
+ "num-complex",
+ "num-integer",
+ "num-iter",
+ "num-rational",
+ "num-traits",
+]
+
 [[package]]
 name = "num-bigint"
 version = "0.4.6"
@@ -3329,6 +3431,19 @@ checksum = "a5e44f723f1133c9deac646763579fdb3ac745e418f2a7af9cd0c431da1f20b9"
 dependencies = [
  "num-integer",
  "num-traits",
+ "rand 0.8.6",
+ "serde",
+]
+
+[[package]]
+name = "num-complex"
+version = "0.4.6"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "73f88a1307638156682bada9d7604135552957b7818057dcef22705b4d509495"
+dependencies = [
+ "num-traits",
+ "rand 0.8.6",
+ "serde",
 ]
 
 [[package]]
@@ -3346,6 +3461,29 @@ dependencies = [
  "num-traits",
 ]
 
+[[package]]
+name = "num-iter"
+version = "0.1.45"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1429034a0490724d0075ebb2bc9e875d6503c3cf69e235a8941aa757d83ef5bf"
+dependencies = [
+ "autocfg",
+ "num-integer",
+ "num-traits",
+]
+
+[[package]]
+name = "num-rational"
+version = "0.4.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f83d14da390562dca69fc84082e73e548e1ad308d24accdedd2720017cb37824"
+dependencies = [
+ "num-bigint",
+ "num-integer",
+ "num-traits",
+ "serde",
+]
+
 [[package]]
 name = "num-traits"
 version = "0.2.19"
@@ -4454,9 +4592,9 @@ checksum = "d3e97a565f76233a6003f9f5c54be1d9c5bdfa3eccfb189469f11ec4901c47dc"
 dependencies = [
  "base16ct",
  "der 0.7.10",
- "generic-array",
+ "generic-array 0.14.7",
  "pkcs8 0.10.2",
- "serdect",
+ "serdect 0.2.0",
  "subtle",
  "zeroize",
 ]
@@ -4622,6 +4760,16 @@ dependencies = [
  "serde",
 ]
 
+[[package]]
+name = "serdect"
+version = "0.3.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f42f67da2385b51a5f9652db9c93d78aeaf7610bf5ec366080b6de810604af53"
+dependencies = [
+ "base16ct",
+ "serde",
+]
+
 [[package]]
 name = "sha2"
 version = "0.10.9"
@@ -4787,6 +4935,12 @@ dependencies = [
  "windows-sys 0.61.2",
 ]
 
+[[package]]
+name = "spin"
+version = "0.10.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d5fe4ccb98d9c292d56fec89a5e07da7fc4cf0dc11e156b41793132775d3e591"
+
 [[package]]
 name = "spki"
 version = "0.7.3"
@@ -4831,6 +4985,17 @@ version = "1.1.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "a2eb9349b6444b326872e140eb1cf5e7c522154d69e7a0ffb0fb81c06b37543f"
 
+[[package]]
+name = "std-shims"
+version = "0.1.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "227c4f8561598188d0df96dbe749824576174bba278b5b6bb2eacff1066067d0"
+dependencies = [
+ "hashbrown 0.16.1",
+ "rustversion",
+ "spin",
+]
+
 [[package]]
 name = "string_morph"
 version = "0.1.0"
@@ -4934,6 +5099,17 @@ dependencies = [
  "unicode-ident",
 ]
 
+[[package]]
+name = "syn"
+version = "3.0.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e6275cddf4610d1775e6d1fe9469b2e77d0f39fd98fb7450901b821e0c53649f"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "unicode-ident",
+]
+
 [[package]]
 name = "syn-solidity"
 version = "1.5.7"
@@ -5574,6 +5750,27 @@ version = "0.9.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "0b928f33d975fc6ad9f86c8f283853ad26bdd5b10b7f1542aa2fa15e2289105a"
 
+[[package]]
+name = "vsss-rs"
+version = "5.4.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6ec751bdcc8bda099e269b24cc6b4ad14f9ce8b0490c1599174070e792ecd70c"
+dependencies = [
+ "crypto-bigint 0.5.5",
+ "crypto-bigint 0.6.1",
+ "elliptic-curve",
+ "elliptic-curve-tools",
+ "generic-array 1.4.1",
+ "hex",
+ "hybrid-array",
+ "num",
+ "rand_core 0.6.4",
+ "serde",
+ "sha3 0.10.9",
+ "subtle",
+ "zeroize",
+]
+
 [[package]]
 name = "wait-timeout"
 version = "0.2.1"

server/Cargo.toml

@@ -12,8 +12,8 @@ base64 = "0.22.1"
 chrono = { version = "0.4.44", features = ["serde"] }
 futures = "0.3.32"
 k256 = { version = "0.13.4", features = ["ecdsa", "pkcs8"] }
-kameo = {git = "https://github.com/hdbg/kameo.git", rev = "805b417"}
+kameo = {git = "https://github.com/hdbg/kameo.git", rev = "17af90e3"}
-kameo_actors = {git = "https://github.com/hdbg/kameo.git", rev = "805b417"}
+kameo_actors = {git = "https://github.com/hdbg/kameo.git", rev = "17af90e3"}
 hmac = "0.13.0"
 miette = { version = "7.6.0", features = ["fancy", "serde"] }
 ml-dsa = { version = "0.1.0-rc.9", features = ["zeroize"] }
@@ -27,6 +27,7 @@ rustls = { version = "0.23.40", features = ["aws-lc-rs", "logging", "prefer-post
 rustls-pki-types = "1.14.1"
 sha2 = "0.11"
 smlang = "0.8.0"
+strum = { version = "0.28.0", features = ["derive"] }
 thiserror = "2.0.18"
 tokio = { version = "1.52.1", features = ["full"] }
 tokio-stream = { version = "0.1.18", features = ["full"] }
@@ -106,7 +107,6 @@ indexing_slicing = "warn"
 infinite_loop = "warn"
 inline_asm_x86_att_syntax = "warn"
 inline_asm_x86_intel_syntax = "warn"
-integer_division = "warn"
 large_include_file = "warn"
 lossy_float_literal = "warn"
 map_with_unused_argument_over_ranges = "warn"
@@ -168,3 +168,4 @@ nursery = { level = "warn", priority = -1 }
 pedantic = { level = "warn", priority = -1 }
 
 type_repetition_in_bounds = "allow"   # sometimes, it's better for readability this way
+unused_async_trait_impl = "allow"

server/clippy.toml

@@ -26,3 +26,5 @@ trait-assoc-item-kinds-order = [
     "type",
     "fn",
 ] # community tested standard
+
+too-many-lines-threshold = 150

server/crates/arbiter-client/src/auth.rs

@@ -2,7 +2,7 @@ use crate::{
     storage::StorageError,
     transport::{ClientTransport, next_request_id},
 };
-use arbiter_crypto::authn::{self, CLIENT_CONTEXT, SigningKey};
+use arbiter_crypto::authn::{self, SigningContext, SigningKey};
 use arbiter_proto::{
     ClientMetadata,
     proto::{
@@ -110,7 +110,7 @@ async fn send_auth_challenge_solution(
     };
     let challenge_payload: Vec<u8> = challenge.format();
     let signature = key
-        .sign_message(&challenge_payload, CLIENT_CONTEXT)
+        .sign_message(&challenge_payload, SigningContext::Client)
         .map_err(|_| AuthError::UnexpectedAuthResponse)?
         .to_bytes();
 

server/crates/arbiter-crypto/Cargo.toml

@@ -7,6 +7,7 @@ edition = "2024"
 ml-dsa = {workspace = true, optional = true }
 rand = {workspace = true, optional = true}
 memsafe = {version = "0.4.0", optional = true}
+strum = { workspace = true, optional = true }
 hmac.workspace = true
 alloy.workspace = true
 x-wing = { version = "0.1.0-rc.0", features = ["zeroize"] }
@@ -18,7 +19,7 @@ workspace = true
 
 [features]
 default = ["authn", "safecell"]
-authn = ["dep:ml-dsa", "dep:rand"]
+authn = ["dep:ml-dsa", "dep:rand", "dep:strum"]
 safecell = ["dep:memsafe"]
 
 [lib]

server/crates/arbiter-crypto/src/authn/v1.rs

@@ -5,9 +5,25 @@ use ml_dsa::{
     SigningKey as MlDsaSigningKey, VerifyingKey as MlDsaVerifyingKey, signature::Keypair as _,
 };
 use rand::RngExt;
+use strum::IntoStaticStr;
 
-pub static CLIENT_CONTEXT: &[u8] = b"arbiter_client";
+/// Domain separation tag mixed into every ML-DSA signature.
-pub static OPERATOR_CONTEXT: &[u8] = b"arbiter_operator";
+#[derive(Debug, Clone, Copy, PartialEq, Eq, IntoStaticStr)]
+pub enum SigningContext {
+    #[strum(serialize = "arbiter_client")]
+    Client,
+    #[strum(serialize = "arbiter_operator")]
+    Operator,
+    #[strum(serialize = "arbiter_governance_vote")]
+    GovernanceVote,
+}
+
+impl SigningContext {
+    #[must_use]
+    pub fn as_bytes(self) -> &'static [u8] {
+        <&'static str>::from(self).as_bytes()
+    }
+}
 
 const NONCE_SIZE: usize = 32;
 
@@ -85,10 +101,26 @@ impl PublicKey {
     }
 
     #[must_use]
-    pub fn verify(&self, challenge: &AuthChallenge, context: &[u8], signature: &Signature) -> bool {
+    pub fn verify(
+        &self,
+        challenge: &AuthChallenge,
+        context: SigningContext,
+        signature: &Signature,
+    ) -> bool {
         let challenge = challenge.format();
         self.0
-            .verify_with_context(&challenge, context, &signature.0)
+            .verify_with_context(&challenge, context.as_bytes(), &signature.0)
+    }
+
+    #[must_use]
+    pub fn verify_message(
+        &self,
+        message: &[u8],
+        context: SigningContext,
+        signature: &Signature,
+    ) -> bool {
+        self.0
+            .verify_with_context(message, context.as_bytes(), &signature.0)
     }
 }
 
@@ -115,17 +147,21 @@ impl SigningKey {
         self.0.verifying_key().into()
     }
 
-    pub fn sign_message(&self, message: &[u8], context: &[u8]) -> Result<Signature, Error> {
+    pub fn sign_message(
+        &self,
+        message: &[u8],
+        context: SigningContext,
+    ) -> Result<Signature, Error> {
         self.0
             .signing_key()
-            .sign_deterministic(message, context)
+            .sign_deterministic(message, context.as_bytes())
             .map(Into::into)
     }
 
     pub fn sign_challenge(
         &self,
         challenge: &AuthChallenge,
-        context: &[u8],
+        context: SigningContext,
     ) -> Result<Signature, Error> {
         let challenge = challenge.format();
 
@@ -192,7 +228,7 @@ mod tests {
 
     use crate::authn::AuthChallenge;
 
-    use super::{CLIENT_CONTEXT, PublicKey, Signature, SigningKey, OPERATOR_CONTEXT};
+    use super::{PublicKey, Signature, SigningContext, SigningKey};
 
     #[test]
     fn public_key_round_trip_decodes() {
@@ -208,7 +244,7 @@ mod tests {
     fn signature_round_trip_decodes() {
         let key = SigningKey::generate();
         let signature = key
-            .sign_message(b"challenge", CLIENT_CONTEXT)
+            .sign_message(b"challenge", SigningContext::Client)
             .expect("signature should be created");
 
         let decoded =
@@ -223,11 +259,11 @@ mod tests {
         let public_key = key.public_key();
         let challenge = AuthChallenge::generate(&mut rand::rng());
         let signature = key
-            .sign_challenge(&challenge, CLIENT_CONTEXT)
+            .sign_challenge(&challenge, SigningContext::Client)
             .expect("signature should be created");
 
-        assert!(public_key.verify(&challenge, CLIENT_CONTEXT, &signature));
+        assert!(public_key.verify(&challenge, SigningContext::Client, &signature));
-        assert!(!public_key.verify(&challenge, OPERATOR_CONTEXT, &signature));
+        assert!(!public_key.verify(&challenge, SigningContext::Operator, &signature));
     }
 
     #[test]
@@ -240,13 +276,13 @@ mod tests {
         let challenge = AuthChallenge::generate(&mut rand::rng());
 
         let signature = restored
-            .sign_challenge(&challenge, CLIENT_CONTEXT)
+            .sign_challenge(&challenge, SigningContext::Client)
             .expect("signature should be created");
 
         assert!(
             restored
                 .public_key()
-                .verify(&challenge, CLIENT_CONTEXT, &signature)
+                .verify(&challenge, SigningContext::Client, &signature)
         );
     }
 }

server/crates/arbiter-crypto/src/safecell.rs

@@ -22,7 +22,7 @@ pub trait SafeCellHandle<T> {
     fn read(&mut self) -> Self::CellRead<'_>;
     fn write(&mut self) -> Self::CellWrite<'_>;
 
-    fn new_inline<F>(f: F) -> Self
+    fn new_inline_default<F>(f: F) -> Self
     where
         Self: Sized,
         T: Default,
@@ -36,6 +36,14 @@ pub trait SafeCellHandle<T> {
         cell
     }
 
+    fn new_inline<F>(f: Box<F>) -> Self
+    where
+        Self: Sized,
+        F: for<'a> FnOnce() -> T,
+    {
+        Self::new(f())
+    }
+
     #[inline(always)]
     fn read_inline<F, R>(&mut self, f: F) -> R
     where

server/crates/arbiter-proto/src/lib.rs

@@ -23,6 +23,10 @@ pub mod proto {
             tonic::include_proto!("arbiter.operator.evm");
         }
 
+        pub mod governance {
+            tonic::include_proto!("arbiter.operator.governance");
+        }
+
         pub mod sdk_client {
             tonic::include_proto!("arbiter.operator.sdk_client");
         }
@@ -34,6 +38,10 @@ pub mod proto {
                 tonic::include_proto!("arbiter.operator.vault.bootstrap");
             }
 
+            pub mod rekey {
+                tonic::include_proto!("arbiter.operator.vault.rekey");
+            }
+
             pub mod unseal {
                 tonic::include_proto!("arbiter.operator.vault.unseal");
             }

server/crates/arbiter-server/Cargo.toml

@@ -37,11 +37,12 @@ kameo.workspace = true
 chacha20poly1305 = { version = "0.10.1", features = ["std"] }
 argon2 = { version = "0.5.3", features = ["zeroize"] }
 restructed = "0.2.2"
-strum = { version = "0.28.0", features = ["derive"] }
+strum.workspace = true
 pem = "3.0.6"
 sha2.workspace = true
 hmac.workspace = true
 alloy.workspace = true
+prost.workspace = true
 prost-types.workspace = true
 arbiter-tokens-registry.path = "../arbiter-tokens-registry"
 anyhow = "1.0.102"
@@ -50,6 +51,8 @@ subtle = "2.6.1"
 x25519-dalek.workspace = true
 k256.workspace = true
 kameo_actors.workspace = true
+vsss-rs = "5.4.0"
+rand_core = "0.6"
 
 [dev-dependencies]
 proptest = "1.11.0"

server/crates/arbiter-server/migrations/2026-02-14-171124-0000_init/up.sql

@@ -56,6 +56,7 @@ create table if not exists operator (
 
     share blob not null,
     share_nonce blob not null,
+    share_salt blob not null,
 
     created_at integer not null default(unixepoch ('now')),
     updated_at integer not null default(unixepoch ('now'))
@@ -215,3 +216,156 @@ create table if not exists integrity_envelope (
 ) STRICT;
 
 create unique index if not exists uniq_integrity_envelope_entity on integrity_envelope (entity_kind, entity_id);
+
+create table if not exists proposal (
+    id           integer not null primary key,
+    kind         text    not null,
+    initiator_id integer not null references operator_identity(id) on delete restrict,
+    created_at   integer not null default(unixepoch('now')),
+    expires_at   integer not null,
+    status       text    not null default 'pending'
+        check (status in ('pending', 'approved', 'rejected'))
+) STRICT;
+
+-- Parameters of an approved-or-pending proposal
+create table if not exists proposal_approve_sdk_client (
+    proposal_id integer not null primary key references proposal(id) on delete cascade,
+    client_id   integer not null references program_client(id) on delete restrict
+) STRICT;
+
+create table if not exists proposal_grant_wallet_access (
+    proposal_id integer not null primary key references proposal(id) on delete cascade,
+    wallet_id   integer not null references evm_wallet(id) on delete restrict,
+    client_id   integer not null references program_client(id) on delete restrict
+) STRICT;
+
+create table if not exists proposal_replace_operator (
+    proposal_id     integer not null primary key references proposal(id) on delete cascade,
+    old_operator_id integer not null references operator_identity(id) on delete restrict,
+    new_pubkey      blob    not null
+) STRICT;
+
+-- The transaction an operator votes to sign.
+create table if not exists proposal_one_off_transaction (
+    proposal_id              integer not null primary key references proposal(id) on delete cascade,
+    client_id                integer not null references program_client(id) on delete restrict,
+    wallet_address           blob    not null check (length(wallet_address) = 20),
+    chain_id                 integer not null,
+    nonce                    integer not null,
+    gas_limit                integer not null,
+    max_fee_per_gas          blob    not null check (length(max_fee_per_gas) = 16),
+    max_priority_fee_per_gas blob    not null check (length(max_priority_fee_per_gas) = 16),
+    to_address               blob    not null check (length(to_address) = 20),
+    value                    blob    not null check (length(value) = 32),
+    input                    blob    not null
+) STRICT;
+
+-- The grant an operator votes to creat
+create table if not exists proposal_persistent_grant (
+    proposal_id              integer not null primary key references proposal (id) on delete cascade,
+    wallet_access_id         integer not null references evm_wallet_access (id) on delete restrict,
+    chain_id                 integer not null, -- EIP-155 chain ID
+    valid_from               integer, -- unix timestamp (seconds), null = no lower bound
+    valid_until              integer, -- unix timestamp (seconds), null = no upper bound
+    max_gas_fee_per_gas      blob check (max_gas_fee_per_gas is null or length(max_gas_fee_per_gas) = 32),
+    max_priority_fee_per_gas blob check (max_priority_fee_per_gas is null or length(max_priority_fee_per_gas) = 32),
+    rate_limit_count         integer, -- max transactions in window, null = unlimited
+    rate_limit_window_secs   integer, -- window duration in seconds, null = unlimited
+    check ((rate_limit_count is null) = (rate_limit_window_secs is null))
+) STRICT;
+
+-- `specific = ether_transfer`
+create table if not exists proposal_persistent_grant_ether (
+    proposal_id integer not null primary key references proposal_persistent_grant (proposal_id) on delete cascade,
+    window_secs integer not null,
+    max_volume  blob    not null check (length(max_volume) = 32)
+) STRICT;
+
+create table if not exists proposal_persistent_grant_ether_target (
+    id          integer not null primary key,
+    proposal_id integer not null references proposal_persistent_grant_ether (proposal_id) on delete cascade,
+    address     blob    not null check (length(address) = 20)
+) STRICT;
+
+create unique index if not exists uniq_proposal_ether_target on proposal_persistent_grant_ether_target (proposal_id, address);
+
+-- `specific = token_transfer`
+create table if not exists proposal_persistent_grant_token (
+    proposal_id    integer not null primary key references proposal_persistent_grant (proposal_id) on delete cascade,
+    token_contract blob    not null check (length(token_contract) = 20),
+    receiver       blob check (receiver is null or length(receiver) = 20)
+) STRICT;
+
+create table if not exists proposal_persistent_grant_token_limit (
+    id          integer not null primary key,
+    proposal_id integer not null references proposal_persistent_grant_token (proposal_id) on delete cascade,
+    window_secs integer not null,
+    max_volume  blob    not null check (length(max_volume) = 32)
+) STRICT;
+
+create table if not exists proposal_vote (
+    id          integer not null primary key,
+    proposal_id integer not null references proposal(id) on delete cascade,
+    operator_id integer not null references operator_identity(id) on delete restrict,
+    approve     integer not null check (approve in (0, 1)),
+    signature   blob    not null,
+    voted_at    integer not null default(unixepoch('now')),
+    unique (proposal_id, operator_id)
+) STRICT;
+
+
+-- The signature the vault produced for an approved transaction, by component.
+--
+-- secp256k1 signatures have three common encodings (Electrum v=27/28, raw parity,
+-- ERC-2098 compact); a single blob would not say which one it holds. `y_parity` is
+-- the raw bit -- add 27 to rebuild the Electrum form `Signature::as_bytes` emits.
+create table if not exists proposal_one_off_transaction_result (
+    proposal_id integer not null primary key
+        references proposal_one_off_transaction (proposal_id) on delete cascade,
+    r           blob    not null check (length(r) = 32),
+    s           blob    not null check (length(s) = 32),
+    y_parity    integer not null check (y_parity in (0, 1)),
+    created_at  integer not null default(unixepoch('now'))
+) STRICT;
+
+-- ===============================
+-- Recovery Operators (§3.4/§3.5/§3.6)
+-- ===============================
+
+-- Encrypted Shamir shares for recovery operators (mirrors the `operator` table).
+create table if not exists recovery_operator (
+    id          integer not null primary key references recovery_operator_identity(id) on delete restrict,
+    share       blob    not null,
+    share_nonce blob    not null,
+    share_salt  blob    not null,
+    created_at  integer not null default(unixepoch('now')),
+    updated_at  integer not null default(unixepoch('now'))
+) STRICT;
+
+create table if not exists recovery_operator_identity (
+    id         integer not null primary key,
+    public_key blob    not null unique,
+    created_at integer not null default(unixepoch('now')),
+    updated_at integer not null default(unixepoch('now'))
+) STRICT;
+
+-- One active wakeup request at a time. A request is pending when cancelled_at IS NULL
+-- and requested_at + 14 days > now. It becomes active (recovery live) after 14 days.
+create table if not exists recovery_wakeup_request (
+    id           integer not null primary key,
+    requested_by integer not null references operator_identity(id) on delete restrict,
+    requested_at integer not null default(unixepoch('now')),
+    cancelled_by integer references operator_identity(id) on delete restrict,
+    cancelled_at integer
+) STRICT;
+
+-- Votes cast by recovery operators; only allowed on replace_operator proposals.
+create table if not exists recovery_proposal_vote (
+    id                   integer not null primary key,
+    proposal_id          integer not null references proposal(id) on delete cascade,
+    recovery_operator_id integer not null references recovery_operator_identity(id) on delete restrict,
+    approve              integer not null check (approve in (0, 1)),
+    signature            blob    not null,
+    voted_at             integer not null default(unixepoch('now')),
+    unique (proposal_id, recovery_operator_id)
+) STRICT;

server/crates/arbiter-server/src/actors/evm/mod.rs

@@ -160,29 +160,23 @@ impl EvmActor {
     }
 
     #[message]
-    #[expect(clippy::unused_async, reason = "reserved for impl")]
+    pub async fn operator_delete_grant(&mut self, grant_id: i32) -> Result<(), Error> {
-    pub async fn operator_delete_grant(&mut self, _grant_id: i32) -> Result<(), Error> {
+        let mut conn = self.db.get().await.map_err(DatabaseError::from)?;
-        // let mut conn = self.db.get().await.map_err(DatabaseError::from)?;
-        // let vault = self.vault.clone();
 
-        // diesel_async::AsyncConnection::transaction(&mut conn, |conn| {
+        let affected = diesel::update(schema::evm_basic_grant::table)
-        //     Box::pin(async move {
+            .filter(schema::evm_basic_grant::id.eq(grant_id))
-        //         diesel::update(schema::evm_basic_grant::table)
+            .set(schema::evm_basic_grant::revoked_at.eq(models::SqliteTimestamp::now()))
-        //             .filter(schema::evm_basic_grant::id.eq(grant_id))
+            .execute(&mut conn)
-        //             .set(schema::evm_basic_grant::revoked_at.eq(SqliteTimestamp::now()))
+            .await
-        //             .execute(conn)
+            .map_err(DatabaseError::from)?;
-        //             .await?;
 
-        //         let signed = integrity::evm::load_signed_grant_by_basic_id(conn, grant_id).await?;
+        if affected == 0 {
+            return Err(Error::Database(DatabaseError::from(
+                diesel::result::Error::NotFound,
+            )));
+        }
 
-        //         diesel::result::QueryResult::Ok(())
+        Ok(())
-        //     })
-        // })
-        // .await
-        // .map_err(DatabaseError::from)?;
-
-        // Ok(())
-        todo!()
     }
 
     #[message]

server/crates/arbiter-server/src/actors/mod.rs

@@ -1,7 +1,8 @@
 use crate::{
     actors::{
         bootstrap::Bootstrapper, evm::EvmActor, flow_coordinator::FlowCoordinator,
-        operator_registry::OperatorRegistry, vault::Vault,
+        operator_registry::OperatorRegistry, proposal_manager::ProposalManager, vault::Vault,
+        vault_coordinator::VaultCoordinator,
     },
     db,
 };
@@ -14,7 +15,9 @@ pub mod bootstrap;
 pub mod evm;
 pub mod flow_coordinator;
 pub mod operator_registry;
+pub mod proposal_manager;
 pub mod vault;
+pub mod vault_coordinator;
 
 #[derive(Error, Debug)]
 pub enum SpawnError {
@@ -30,9 +33,11 @@ pub enum SpawnError {
 pub struct GlobalActors {
     pub vault: ActorRef<Vault>,
     pub bootstrapper: ActorRef<Bootstrapper>,
+    pub vault_coordinator: ActorRef<VaultCoordinator>,
     pub flow_coordinator: ActorRef<FlowCoordinator>,
     pub operator_registry: ActorRef<OperatorRegistry>,
     pub evm: ActorRef<EvmActor>,
+    pub proposal_manager: ActorRef<ProposalManager>,
     pub events: ActorRef<MessageBus>,
 }
 
@@ -45,15 +50,27 @@ impl GlobalActors {
         let message_bus = Self::spawn_message_bus();
         let key_holder = Vault::spawn(Vault::new(db.clone(), message_bus.clone()).await?);
         let operator_registry = OperatorRegistry::spawn(OperatorRegistry::default());
+        let evm = EvmActor::spawn(EvmActor::new(key_holder.clone(), db.clone()));
+        let vault_coordinator = VaultCoordinator::spawn(VaultCoordinator::new(
+            db.clone(),
+            key_holder.clone(),
+        ));
         Ok(Self {
             bootstrapper: Bootstrapper::spawn(Bootstrapper::new(&db).await?),
-            evm: EvmActor::spawn(EvmActor::new(key_holder.clone(), db)),
+            proposal_manager: ProposalManager::spawn(ProposalManager::new(
+                db,
+                key_holder.clone(),
+                evm.clone(),
+                vault_coordinator.clone(),
+            )),
             vault: key_holder,
+            vault_coordinator,
             flow_coordinator: FlowCoordinator::spawn(FlowCoordinator::new(
                 operator_registry.clone(),
             )),
             operator_registry,
             events: message_bus,
+            evm,
         })
     }
 }

server/crates/arbiter-server/src/actors/proposal_manager.rs

@@ -0,0 +1,789 @@
+use crate::{
+    actors::{
+        evm::EvmActor,
+        vault::Vault,
+        vault_coordinator::{StartRekey, VaultCoordinator},
+    },
+    crypto::governance,
+    db::{
+        self,
+        functions::unixepoch,
+        models::{
+            NewProposal, NewProposalVote, NewRecoveryProposalVote, NewRecoveryWakeupRequest,
+            OperatorIdentityId, Proposal, ProposalId, ProposalStatus, RecoveryOperatorIdentityId,
+            SqliteTimestamp,
+        },
+        proposal::{ProposalKind, ProposalKindTag, one_off_transaction, persistent_grant},
+        schema,
+    },
+};
+use chrono::Utc;
+use diesel::{
+    ExpressionMethods as _, QueryDsl,
+    dsl::{exists, select},
+};
+use diesel_async::{AsyncConnection as _, RunQueryDsl};
+use kameo::{Actor, actor::ActorRef, messages};
+use std::collections::HashMap;
+use strum::IntoDiscriminant as _;
+use tracing::{error, warn};
+
+pub const DEFAULT_TTL_SECS: u32 = 7 * 24 * 60 * 60; // 7 days
+pub const MAX_TTL_SECS: u32 = DEFAULT_TTL_SECS;
+
+#[derive(Debug, Clone, PartialEq, Eq)]
+pub enum VoteOutcome {
+    Pending,
+    Approved,
+    Rejected,
+}
+
+#[derive(Debug, thiserror::Error)]
+pub enum Error {
+    #[error("Proposal not found")]
+    ProposalNotFound,
+    #[error("Proposal is not pending")]
+    ProposalNotPending,
+    #[error("Proposal has expired")]
+    ProposalExpired,
+    #[error("Requested TTL exceeds the maximum of {} seconds", MAX_TTL_SECS)]
+    TtlTooLong,
+    #[error("Operator already voted on this proposal")]
+    AlreadyVoted,
+    #[error("Invalid vote signature")]
+    InvalidSignature,
+    #[error("Operator not found")]
+    OperatorNotFound,
+    #[error("Database connection error: {0}")]
+    DatabaseConnection(#[from] db::PoolError),
+    #[error("Database query error: {0}")]
+    DatabaseQuery(#[from] diesel::result::Error),
+    #[error("Execution failed: {0}")]
+    ExecutionFailed(String),
+    #[error("Recovery operators are sleeping")]
+    RecoveryNotActive,
+    #[error("Recovery operators may only vote on operator replacement")]
+    NotAllowedForRecoveryOperator,
+    #[error("A recovery wake-up is already pending or active")]
+    WakeupAlreadyPending,
+    #[error("No active recovery wake-up to cancel")]
+    NoActiveWakeup,
+}
+
+#[derive(Debug)]
+pub struct ProposalSummary {
+    pub id: ProposalId,
+    pub kind: ProposalKindTag,
+    pub initiator_id: OperatorIdentityId,
+    pub expires_at: SqliteTimestamp,
+    pub approve_count: i64,
+    pub reject_count: i64,
+}
+
+#[derive(Actor)]
+pub struct ProposalManager {
+    pub(crate) db: db::DatabasePool,
+    pub(crate) vault: ActorRef<Vault>,
+    pub(crate) evm: ActorRef<EvmActor>,
+    pub(crate) vault_coordinator: ActorRef<VaultCoordinator>,
+}
+
+impl ProposalManager {
+    pub const fn new(
+        db: db::DatabasePool,
+        vault: ActorRef<Vault>,
+        evm: ActorRef<EvmActor>,
+        vault_coordinator: ActorRef<VaultCoordinator>,
+    ) -> Self {
+        Self {
+            db,
+            vault,
+            evm,
+            vault_coordinator,
+        }
+    }
+}
+
+#[messages]
+impl ProposalManager {
+    #[message]
+    pub async fn create_proposal(
+        &mut self,
+        kind: ProposalKind,
+        initiator_id: OperatorIdentityId,
+        ttl_secs: Option<u32>,
+    ) -> Result<ProposalId, Error> {
+        let ttl = ttl_secs.unwrap_or(DEFAULT_TTL_SECS);
+        if ttl > MAX_TTL_SECS {
+            return Err(Error::TtlTooLong);
+        }
+        let expires_at =
+            SqliteTimestamp::from(Utc::now() + chrono::Duration::seconds(i64::from(ttl)));
+
+        let id: ProposalId = self
+            .db
+            .get()
+            .await?
+            .transaction(async |conn| {
+                let id: ProposalId = diesel::insert_into(schema::proposal::table)
+                    .values(&NewProposal {
+                        kind: kind.discriminant(),
+                        initiator_id,
+                        expires_at,
+                    })
+                    .returning(schema::proposal::id)
+                    .get_result(conn)
+                    .await?;
+                db::proposal::insert_kind(conn, id, &kind).await?;
+                Ok::<_, diesel::result::Error>(id)
+            })
+            .await?;
+
+        Ok(id)
+    }
+
+    #[message]
+    pub async fn query_pending(&mut self, operator_id: OperatorIdentityId) -> Vec<ProposalSummary> {
+        #[expect(
+            clippy::cast_possible_truncation,
+            clippy::as_conversions,
+            reason = "fixme! #84; this will break in 2038"
+        )]
+        let now_ts = Utc::now().timestamp() as i32;
+
+        let Ok(mut conn) = self.db.get().await else {
+            warn!("query_pending: failed to acquire DB connection");
+            return vec![];
+        };
+
+        let voted_ids: Vec<ProposalId> = schema::proposal_vote::table
+            .filter(schema::proposal_vote::operator_id.eq(operator_id))
+            .select(schema::proposal_vote::proposal_id)
+            .load(&mut conn)
+            .await
+            .unwrap_or_default();
+
+        let proposals: Vec<Proposal> = schema::proposal::table
+            .filter(schema::proposal::status.eq(ProposalStatus::Pending))
+            .filter(schema::proposal::expires_at.gt(now_ts))
+            .filter(diesel::dsl::not(schema::proposal::id.eq_any(&voted_ids)))
+            .load(&mut conn)
+            .await
+            .unwrap_or_default();
+
+        let ids: Vec<ProposalId> = proposals.iter().map(|p| p.id).collect();
+        let tallies: Vec<(ProposalId, bool, i64)> = schema::proposal_vote::table
+            .filter(schema::proposal_vote::proposal_id.eq_any(&ids))
+            .group_by((
+                schema::proposal_vote::proposal_id,
+                schema::proposal_vote::approve,
+            ))
+            .select((
+                schema::proposal_vote::proposal_id,
+                schema::proposal_vote::approve,
+                diesel::dsl::count_star(),
+            ))
+            .load(&mut conn)
+            .await
+            .unwrap_or_default();
+
+        let mut by_proposal: HashMap<ProposalId, (i64, i64)> = HashMap::new();
+        for (proposal_id, approve, count) in tallies {
+            let entry = by_proposal.entry(proposal_id).or_insert((0, 0));
+            if approve {
+                entry.0 += count;
+            } else {
+                entry.1 += count;
+            }
+        }
+
+        proposals
+            .into_iter()
+            .map(|p| {
+                let (approve_count, reject_count) =
+                    by_proposal.get(&p.id).copied().unwrap_or((0, 0));
+                ProposalSummary {
+                    id: p.id,
+                    kind: p.kind,
+                    initiator_id: p.initiator_id,
+                    expires_at: p.expires_at,
+                    approve_count,
+                    reject_count,
+                }
+            })
+            .collect()
+    }
+
+    #[message]
+    pub async fn cast_vote(
+        &mut self,
+        proposal_id: ProposalId,
+        operator_id: OperatorIdentityId,
+        approve: bool,
+        signature: Vec<u8>,
+    ) -> Result<VoteOutcome, Error> {
+        let mut conn = self.db.get().await?;
+
+        // Load proposal — must exist
+        let proposal: Proposal = schema::proposal::table
+            .find(proposal_id)
+            .first(&mut conn)
+            .await
+            .map_err(|e| match e {
+                diesel::result::Error::NotFound => Error::ProposalNotFound,
+                other => Error::DatabaseQuery(other),
+            })?;
+
+        // Check for duplicate vote before status check so AlreadyVoted takes priority
+        let already_voted: bool = select(exists(
+            schema::proposal_vote::table
+                .filter(schema::proposal_vote::proposal_id.eq(proposal_id))
+                .filter(schema::proposal_vote::operator_id.eq(operator_id)),
+        ))
+        .get_result(&mut conn)
+        .await?;
+        if already_voted {
+            return Err(Error::AlreadyVoted);
+        }
+
+        if proposal.status != ProposalStatus::Pending {
+            return Err(Error::ProposalNotPending);
+        }
+
+        if proposal.expires_at.0 <= Utc::now() {
+            return Err(Error::ProposalExpired);
+        }
+
+        // Load operator public key from operator_identity
+        let pubkey_bytes: Vec<u8> = schema::operator_identity::table
+            .find(operator_id)
+            .select(schema::operator_identity::public_key)
+            .first(&mut conn)
+            .await
+            .map_err(|e| match e {
+                diesel::result::Error::NotFound => Error::OperatorNotFound,
+                other => Error::DatabaseQuery(other),
+            })?;
+
+        governance::verify_vote(&pubkey_bytes, proposal_id, approve, &signature)
+            .map_err(|_| Error::InvalidSignature)?;
+
+        // Insert vote
+        diesel::insert_into(schema::proposal_vote::table)
+            .values(&NewProposalVote {
+                proposal_id,
+                operator_id,
+                approve,
+                signature,
+            })
+            .execute(&mut conn)
+            .await?;
+
+        // Quorum check
+        let total_operators: i64 = schema::operator_identity::table
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let recovery_active = Self::is_recovery_active_conn(&mut conn).await?;
+        let total_recovery: i64 = if recovery_active {
+            schema::recovery_operator_identity::table
+                .count()
+                .get_result(&mut conn)
+                .await?
+        } else {
+            0
+        };
+        #[expect(
+            clippy::cast_possible_truncation,
+            clippy::cast_sign_loss,
+            clippy::as_conversions,
+            reason = "operator count is always a small positive integer"
+        )]
+        let threshold = if proposal.kind.requires_full_quorum() {
+            // §3.3: key-rotation proposals require every eligible voter to approve
+            // §3.5: when recovery is active, recovery operators also vote on replace_operator
+            (total_operators + total_recovery) as usize
+        } else {
+            crate::crypto::shamir::shamir_threshold(total_operators as usize)
+        };
+
+        let ordinary_approve: i64 = schema::proposal_vote::table
+            .filter(schema::proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::proposal_vote::approve.eq(true))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let recovery_approve: i64 = schema::recovery_proposal_vote::table
+            .filter(schema::recovery_proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::recovery_proposal_vote::approve.eq(true))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let approve_count = ordinary_approve + recovery_approve;
+
+        let ordinary_reject: i64 = schema::proposal_vote::table
+            .filter(schema::proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::proposal_vote::approve.eq(false))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let recovery_reject: i64 = schema::recovery_proposal_vote::table
+            .filter(schema::recovery_proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::recovery_proposal_vote::approve.eq(false))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let reject_count = ordinary_reject + recovery_reject;
+
+        #[expect(
+            clippy::cast_possible_wrap,
+            clippy::as_conversions,
+            reason = "threshold is derived from operator count, always fits i64"
+        )]
+        let threshold_i64 = threshold as i64;
+
+        if approve_count >= threshold_i64 {
+            diesel::update(schema::proposal::table.find(proposal_id))
+                .set(schema::proposal::status.eq(ProposalStatus::Approved))
+                .execute(&mut conn)
+                .await?;
+            drop(conn); // release connection before async execution
+            self.execute_proposal(&proposal).await?;
+            return Ok(VoteOutcome::Approved);
+        }
+
+        let total_eligible = total_operators + total_recovery;
+        if reject_count > total_eligible - threshold_i64 {
+            diesel::update(schema::proposal::table.find(proposal_id))
+                .set(schema::proposal::status.eq(ProposalStatus::Rejected))
+                .execute(&mut conn)
+                .await?;
+            return Ok(VoteOutcome::Rejected);
+        }
+
+        Ok(VoteOutcome::Pending)
+    }
+
+    /// §3.6: Any ordinary operator may request recovery wake-up.
+    /// Fails if a wake-up is already pending or active.
+    #[message]
+    pub async fn request_recovery_wakeup(
+        &mut self,
+        operator_id: OperatorIdentityId,
+    ) -> Result<(), Error> {
+        let mut conn = self.db.get().await?;
+        if Self::has_uncancelled_wakeup(&mut conn).await? {
+            return Err(Error::WakeupAlreadyPending);
+        }
+        diesel::insert_into(schema::recovery_wakeup_request::table)
+            .values(&NewRecoveryWakeupRequest {
+                requested_by: operator_id,
+            })
+            .execute(&mut conn)
+            .await?;
+        Ok(())
+    }
+
+    /// §3.6: Any ordinary operator may cancel a pending wake-up request.
+    /// Fails if there is no uncancelled request.
+    #[message]
+    pub async fn cancel_recovery_wakeup(
+        &mut self,
+        operator_id: OperatorIdentityId,
+    ) -> Result<(), Error> {
+        let mut conn = self.db.get().await?;
+        let rows_updated = diesel::update(schema::recovery_wakeup_request::table)
+            .filter(schema::recovery_wakeup_request::cancelled_at.is_null())
+            .set((
+                schema::recovery_wakeup_request::cancelled_by.eq(Some(operator_id)),
+                schema::recovery_wakeup_request::cancelled_at.eq(Some(SqliteTimestamp::now())),
+            ))
+            .execute(&mut conn)
+            .await?;
+        if rows_updated == 0 {
+            return Err(Error::NoActiveWakeup);
+        }
+        Ok(())
+    }
+
+    /// §3.5: Recovery operators may only vote on operator replacement proposals.
+    /// §3.6: Voting is gated behind recovery being active (14-day window elapsed).
+    #[message]
+    pub async fn cast_recovery_vote(
+        &mut self,
+        proposal_id: ProposalId,
+        recovery_operator_id: RecoveryOperatorIdentityId,
+        approve: bool,
+        signature: Vec<u8>,
+    ) -> Result<VoteOutcome, Error> {
+        let mut conn = self.db.get().await?;
+
+        let proposal: Proposal = schema::proposal::table
+            .find(proposal_id)
+            .first(&mut conn)
+            .await
+            .map_err(|e| match e {
+                diesel::result::Error::NotFound => Error::ProposalNotFound,
+                other => Error::DatabaseQuery(other),
+            })?;
+
+        if proposal.kind != ProposalKindTag::ReplaceOperator {
+            return Err(Error::NotAllowedForRecoveryOperator);
+        }
+
+        if !Self::is_recovery_active_conn(&mut conn).await? {
+            return Err(Error::RecoveryNotActive);
+        }
+
+        let already_voted: bool = select(exists(
+            schema::recovery_proposal_vote::table
+                .filter(schema::recovery_proposal_vote::proposal_id.eq(proposal_id))
+                .filter(
+                    schema::recovery_proposal_vote::recovery_operator_id.eq(recovery_operator_id),
+                ),
+        ))
+        .get_result(&mut conn)
+        .await?;
+        if already_voted {
+            return Err(Error::AlreadyVoted);
+        }
+
+        if proposal.status != ProposalStatus::Pending {
+            return Err(Error::ProposalNotPending);
+        }
+
+        if proposal.expires_at.0 <= Utc::now() {
+            return Err(Error::ProposalExpired);
+        }
+
+        let pubkey_bytes: Vec<u8> = schema::recovery_operator_identity::table
+            .find(recovery_operator_id)
+            .select(schema::recovery_operator_identity::public_key)
+            .first(&mut conn)
+            .await
+            .map_err(|e| match e {
+                diesel::result::Error::NotFound => Error::OperatorNotFound,
+                other => Error::DatabaseQuery(other),
+            })?;
+
+        governance::verify_vote(&pubkey_bytes, proposal_id, approve, &signature)
+            .map_err(|_| Error::InvalidSignature)?;
+
+        diesel::insert_into(schema::recovery_proposal_vote::table)
+            .values(&NewRecoveryProposalVote {
+                proposal_id,
+                recovery_operator_id,
+                approve,
+                signature,
+            })
+            .execute(&mut conn)
+            .await?;
+
+        // Quorum: all ordinary + all recovery operators must approve (§3.3 + §3.5)
+        let total_ordinary: i64 = schema::operator_identity::table
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let total_recovery: i64 = schema::recovery_operator_identity::table
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let threshold_i64 = total_ordinary + total_recovery;
+
+        let ordinary_approve: i64 = schema::proposal_vote::table
+            .filter(schema::proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::proposal_vote::approve.eq(true))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let recovery_approve: i64 = schema::recovery_proposal_vote::table
+            .filter(schema::recovery_proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::recovery_proposal_vote::approve.eq(true))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let approve_count = ordinary_approve + recovery_approve;
+
+        if approve_count >= threshold_i64 {
+            diesel::update(schema::proposal::table.find(proposal_id))
+                .set(schema::proposal::status.eq(ProposalStatus::Approved))
+                .execute(&mut conn)
+                .await?;
+            drop(conn);
+            self.execute_proposal(&proposal).await?;
+            return Ok(VoteOutcome::Approved);
+        }
+
+        let recovery_reject: i64 = schema::recovery_proposal_vote::table
+            .filter(schema::recovery_proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::recovery_proposal_vote::approve.eq(false))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let ordinary_reject: i64 = schema::proposal_vote::table
+            .filter(schema::proposal_vote::proposal_id.eq(proposal_id))
+            .filter(schema::proposal_vote::approve.eq(false))
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let reject_count = ordinary_reject + recovery_reject;
+
+        if reject_count > threshold_i64 - approve_count - reject_count {
+            diesel::update(schema::proposal::table.find(proposal_id))
+                .set(schema::proposal::status.eq(ProposalStatus::Rejected))
+                .execute(&mut conn)
+                .await?;
+            return Ok(VoteOutcome::Rejected);
+        }
+
+        Ok(VoteOutcome::Pending)
+    }
+}
+
+impl ProposalManager {
+    const WAKEUP_DELAY_SECS: i32 = 14 * 24 * 60 * 60;
+
+    /// Returns true when an uncancelled wakeup request has passed the 14-day dispute window.
+    async fn is_recovery_active_conn(conn: &mut db::DatabaseConnection) -> Result<bool, Error> {
+        select(exists(
+            schema::recovery_wakeup_request::table
+                .filter(schema::recovery_wakeup_request::cancelled_at.is_null())
+                .filter(
+                    schema::recovery_wakeup_request::requested_at
+                        .le(unixepoch("now") - Self::WAKEUP_DELAY_SECS),
+                ),
+        ))
+        .get_result(conn)
+        .await
+        .map_err(Error::from)
+    }
+
+    /// Returns true when there is any uncancelled wakeup request (pending or active).
+    async fn has_uncancelled_wakeup(conn: &mut db::DatabaseConnection) -> Result<bool, Error> {
+        select(exists(schema::recovery_wakeup_request::table.filter(
+            schema::recovery_wakeup_request::cancelled_at.is_null(),
+        )))
+        .get_result(conn)
+        .await
+        .map_err(Error::from)
+    }
+
+    async fn execute_proposal(&self, proposal: &Proposal) -> Result<(), Error> {
+        let mut conn = self.db.get().await?;
+        let kind = db::proposal::load_kind(&mut conn, proposal.id, proposal.kind).await?;
+        drop(conn);
+
+        match kind {
+            ProposalKind::ApproveSdkClient(s) => self.execute_approve_sdk_client(s.client_id).await,
+            ProposalKind::GrantWalletAccess(s) => {
+                self.execute_grant_wallet_access(s.wallet_id, s.client_id)
+                    .await
+            }
+            ProposalKind::ReplaceOperator(s) => {
+                self.execute_replace_operator(s.old_operator_id, s.new_pubkey)
+                    .await
+            }
+            ProposalKind::TriggerRekey => self.execute_trigger_rekey().await,
+            ProposalKind::ApprovePersistentGrant(grant) => {
+                self.execute_approve_persistent_grant(*grant).await
+            }
+            ProposalKind::ApproveOneOffTransaction(tx) => {
+                self.execute_approve_one_off_transaction(proposal.id, *tx)
+                    .await
+            }
+        }
+    }
+
+    async fn execute_grant_wallet_access(
+        &self,
+        wallet_id: i32,
+        client_id: i32,
+    ) -> Result<(), Error> {
+        use crate::db::models::EvmWalletId;
+
+        let mut conn = self.db.get().await.map_err(Error::DatabaseConnection)?;
+
+        diesel::insert_into(schema::evm_wallet_access::table)
+            .values((
+                schema::evm_wallet_access::wallet_id.eq(EvmWalletId::from_raw(wallet_id)),
+                schema::evm_wallet_access::client_id.eq(client_id),
+            ))
+            .execute(&mut conn)
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("grant wallet access: {e}")))?;
+
+        Ok(())
+    }
+
+    /// Updates the old operator's public key in-place (preserving their DB id and history),
+    /// removes their old Shamir share, then begins a coordinated re-key (§3.3).
+    async fn execute_replace_operator(
+        &self,
+        old_operator_id: OperatorIdentityId,
+        new_pubkey: Vec<u8>,
+    ) -> Result<(), Error> {
+        let mut conn = self.db.get().await.map_err(Error::DatabaseConnection)?;
+
+        diesel::update(schema::operator_identity::table)
+            .filter(schema::operator_identity::id.eq(old_operator_id))
+            .set(schema::operator_identity::public_key.eq(&new_pubkey))
+            .execute(&mut conn)
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("update operator pubkey: {e}")))?;
+
+        // Remove the old Shamir share; finalize_rekey will store a fresh one.
+        diesel::delete(schema::operator::table)
+            .filter(schema::operator::id.eq(Some(old_operator_id)))
+            .execute(&mut conn)
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("remove old operator share: {e}")))?;
+
+        drop(conn);
+
+        self.vault_coordinator
+            .ask(StartRekey {})
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("start rekey: {e}")))?;
+
+        Ok(())
+    }
+
+    /// Triggers a Shamir re-key with the current operator set (§3.3).
+    async fn execute_trigger_rekey(&self) -> Result<(), Error> {
+        self.vault_coordinator
+            .ask(StartRekey {})
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("start rekey: {e}")))?;
+        Ok(())
+    }
+
+    async fn execute_approve_one_off_transaction(
+        &self,
+        proposal_id: ProposalId,
+        tx: one_off_transaction::Settings,
+    ) -> Result<(), Error> {
+        use crate::actors::evm::ClientSignTransaction;
+        use alloy::{
+            consensus::TxEip1559,
+            eips::eip2930::AccessList,
+            primitives::{Address, Bytes, TxKind, U256},
+        };
+
+        let transaction = TxEip1559 {
+            chain_id: tx.chain_id,
+            nonce: tx.nonce,
+            gas_limit: tx.gas_limit,
+            max_fee_per_gas: tx.max_fee_per_gas,
+            max_priority_fee_per_gas: tx.max_priority_fee_per_gas,
+            to: TxKind::Call(Address::from(tx.to)),
+            value: U256::from_be_bytes(tx.value),
+            input: Bytes::from(tx.input),
+            access_list: AccessList::default(),
+        };
+
+        let sig = self
+            .evm
+            .ask(ClientSignTransaction {
+                client_id: tx.client_id,
+                wallet_address: Address::from(tx.wallet_address),
+                transaction,
+            })
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("sign one-off tx: {e}")))?;
+
+        let mut conn = self.db.get().await.map_err(Error::DatabaseConnection)?;
+        one_off_transaction::store_signature(proposal_id, &sig, &mut conn)
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("store proposal result: {e}")))?;
+
+        Ok(())
+    }
+
+    async fn execute_approve_persistent_grant(
+        &self,
+        grant: persistent_grant::Settings,
+    ) -> Result<(), Error> {
+        use crate::{
+            actors::evm::OperatorCreateGrant,
+            evm::policies::{
+                SharedGrantSettings, SpecificGrant, TransactionRateLimit, VolumeRateLimit,
+                ether_transfer, token_transfers,
+            },
+        };
+        use alloy::primitives::{Address, U256};
+        use chrono::Duration;
+
+        let volume = |limit: persistent_grant::VolumeLimit| VolumeRateLimit {
+            max_volume: U256::from_be_bytes(limit.max_volume),
+            window: Duration::seconds(limit.window_secs),
+        };
+
+        let basic = SharedGrantSettings {
+            wallet_access_id: grant.wallet_access_id,
+            chain: grant.chain_id,
+            valid_from: grant
+                .valid_from_secs
+                .and_then(|s| chrono::DateTime::from_timestamp(s, 0)),
+            valid_until: grant
+                .valid_until_secs
+                .and_then(|s| chrono::DateTime::from_timestamp(s, 0)),
+            max_gas_fee_per_gas: grant.max_gas_fee_per_gas.map(U256::from_be_bytes),
+            max_priority_fee_per_gas: grant.max_priority_fee_per_gas.map(U256::from_be_bytes),
+            rate_limit: grant.rate_limit.map(|r| TransactionRateLimit {
+                count: r.count,
+                window: Duration::seconds(r.window_secs),
+            }),
+        };
+
+        let grant = match grant.specific {
+            persistent_grant::Specific::EtherTransfer { targets, limit } => {
+                SpecificGrant::EtherTransfer(ether_transfer::Settings {
+                    target: targets.into_iter().map(Address::from).collect(),
+                    limit: volume(limit),
+                })
+            }
+            persistent_grant::Specific::TokenTransfer {
+                token_contract,
+                receiver,
+                volume_limits,
+            } => SpecificGrant::TokenTransfer(token_transfers::Settings {
+                token_contract: Address::from(token_contract),
+                target: receiver.map(Address::from),
+                volume_limits: volume_limits.into_iter().map(volume).collect(),
+            }),
+        };
+
+        self.evm
+            .ask(OperatorCreateGrant { basic, grant })
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("create grant: {e}")))?;
+
+        Ok(())
+    }
+
+    async fn execute_approve_sdk_client(&self, client_id: i32) -> Result<(), Error> {
+        use crate::{crypto::integrity, peers::client::ClientCredentials};
+        use arbiter_crypto::authn;
+
+        let mut conn = self.db.get().await.map_err(Error::DatabaseConnection)?;
+
+        let pubkey_bytes: Vec<u8> = schema::program_client::table
+            .find(client_id)
+            .select(schema::program_client::public_key)
+            .first(&mut conn)
+            .await
+            .map_err(|e| Error::ExecutionFailed(format!("client not found: {e}")))?;
+
+        let pubkey = authn::PublicKey::try_from(pubkey_bytes.as_slice())
+            .map_err(|()| Error::ExecutionFailed("invalid client public key".to_owned()))?;
+
+        let creds = ClientCredentials { pubkey };
+
+        integrity::sign_entity(&mut conn, &self.vault, &creds, client_id)
+            .await
+            .map_err(|e| {
+                error!(?e, "Failed to sign integrity envelope for client");
+                Error::ExecutionFailed(e.to_string())
+            })
+    }
+}

server/crates/arbiter-server/src/actors/vault/mod.rs

@@ -1,13 +1,13 @@
 use crate::{
     crypto::{
-        KeyCell, derive_key,
+        KeyCell,
         encryption::v1::{self, Nonce},
         integrity::v1::HmacSha256,
     },
     db::{
         self,
         models::{self, RootKeyHistory, RootKeyHistoryId},
-        schema::{self},
+        schema,
     },
 };
 use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
@@ -90,7 +90,6 @@ pub struct Vault {
     events: ActorRef<MessageBus>,
 }
 
-#[messages]
 impl Vault {
     pub async fn new(db: db::DatabasePool, events: ActorRef<MessageBus>) -> Result<Self, Error> {
         let state = {
@@ -113,7 +112,7 @@ impl Vault {
         Ok(Self { db, state, events })
     }
 
-    // Exclusive transaction to avoid race condtions if multiple vaults write
+    // Exclusive transaction to avoid race conditions if multiple vaults write
     // additional layer of protection against nonce-reuse
     async fn get_new_nonce(
         pool: &db::DatabasePool,
@@ -158,33 +157,37 @@ impl Vault {
             State::Sealed { .. } => Err(Error::Sealed),
         }
     }
+}
 
+#[messages]
+impl Vault {
     #[message]
-    pub async fn bootstrap(&mut self, seal_key_raw: SafeCell<Vec<u8>>) -> Result<(), Error> {
+    pub async fn bootstrap(&mut self, mut seal_key: KeyCell) -> Result<(), Error> {
-        if !matches!(self.state, State::Unbootstrapped) {
+        if !matches!(&self.state, State::Unbootstrapped) {
             return Err(Error::AlreadyBootstrapped);
         }
-        let salt = v1::generate_salt();
+
-        let mut seal_key = derive_key(seal_key_raw, &salt);
         let mut root_key = KeyCell::new_secure_random();
 
         // Zero nonces are fine because they are one-time
         let root_key_nonce = Nonce::default();
         let data_encryption_nonce = Nonce::default();
 
-        let root_key_ciphertext: Vec<u8> = root_key.0.read_inline(|reader| {
+        // Generate salt (kept for schema compat)
-            let root_key_reader = reader.as_slice();
+        let root_key_salt = v1::generate_salt();
+
+        let root_key_ciphertext: Vec<u8> = root_key.0.read_inline(|rk| {
             seal_key
-                .encrypt(&root_key_nonce, v1::ROOT_KEY_TAG, root_key_reader)
+                .encrypt(&root_key_nonce, v1::ROOT_KEY_TAG, rk.as_slice())
                 .map_err(|err| {
                     error!(?err, "Fatal bootstrap error");
                     Error::Encryption(err)
                 })
         })?;
 
+        let data_encryption_nonce_bytes = data_encryption_nonce.to_vec();
         let mut conn = self.db.get().await?;
 
-        let data_encryption_nonce_bytes = data_encryption_nonce.to_vec();
         let root_key_history_id = conn
             .transaction(async |conn| {
                 let root_key_history_id = insert_into(schema::root_key_history::table)
@@ -194,7 +197,7 @@ impl Vault {
                         root_key_encryption_nonce: root_key_nonce.to_vec(),
                         data_encryption_nonce: data_encryption_nonce_bytes.clone(),
                         schema_version: 1,
-                        salt: salt.to_vec(),
+                        salt: root_key_salt.to_vec(),
                     })
                     .returning(schema::root_key_history::id)
                     .get_result(&mut *conn)
@@ -223,52 +226,47 @@ impl Vault {
     }
 
     #[message]
-    pub async fn try_unseal(&mut self, seal_key_raw: SafeCell<Vec<u8>>) -> Result<(), Error> {
+    pub async fn try_unseal(&mut self, mut seal_key: KeyCell) -> Result<(), Error> {
         let State::Sealed {
             root_key_history_id,
         } = &self.state
         else {
             return Err(Error::NotBootstrapped);
         };
+        let root_key_history_id = *root_key_history_id;
 
-        // We don't want to hold connection while doing expensive KDF work
+        // We don't want to hold connection while doing expensive work
         let current_key = {
             let mut conn = self.db.get().await?;
             schema::root_key_history::table
-                .filter(schema::root_key_history::id.eq(*root_key_history_id))
+                .filter(schema::root_key_history::id.eq(root_key_history_id))
                 .select(RootKeyHistory::as_select())
                 .first(&mut conn)
                 .await?
         };
 
-        let salt = &current_key.salt;
-        let salt = v1::Salt::try_from(salt.as_slice()).map_err(|_| {
-            error!("Broken database: invalid salt for root key");
-            Error::BrokenDatabase
-        })?;
-        let mut seal_key = derive_key(seal_key_raw, &salt);
-
-        let mut root_key = SafeCell::new(current_key.ciphertext.clone());
-
         let nonce =
             Nonce::try_from(current_key.root_key_encryption_nonce.as_slice()).map_err(|()| {
                 error!("Broken database: invalid nonce for root key");
                 Error::BrokenDatabase
             })?;
 
+        let mut root_key_bytes = SafeCell::new(current_key.ciphertext.clone());
         seal_key
-            .decrypt_in_place(&nonce, v1::ROOT_KEY_TAG, &mut root_key)
+            .decrypt_in_place(&nonce, v1::ROOT_KEY_TAG, &mut root_key_bytes)
             .map_err(|err| {
                 error!(?err, "Failed to unseal root key: invalid seal key");
                 Error::InvalidKey
             })?;
 
+        let root_key = KeyCell::try_from(root_key_bytes).map_err(|()| {
+            error!("Broken database: invalid encryption key size");
+            Error::BrokenDatabase
+        })?;
+
         self.state = State::Unsealed(Unsealed {
             root_key_history_id: current_key.id,
-            root_key: KeyCell::try_from(root_key).map_err(|err| {
+            root_key,
-                error!(?err, "Broken database: invalid encryption key size");
-                Error::BrokenDatabase
-            })?,
         });
 
         info!("Vault unsealed successfully");
@@ -277,6 +275,77 @@ impl Vault {
         Ok(())
     }
 
+    /// Re-encrypts the root key with `new_seal_key` and records a new root_key_history row.
+    /// Called after a Shamir re-key so the old seal key is no longer sufficient to unseal.
+    #[message]
+    pub async fn rekey_root_key(&mut self, mut new_seal_key: KeyCell) -> Result<(), Error> {
+        let Unsealed {
+            root_key,
+            root_key_history_id,
+        } = Self::expect_unsealed(&mut self.state)?;
+
+        let new_nonce = Nonce::default();
+        let new_salt = v1::generate_salt();
+
+        let new_ciphertext: Vec<u8> = root_key.0.read_inline(|rk| {
+            new_seal_key
+                .encrypt(&new_nonce, v1::ROOT_KEY_TAG, rk.as_slice())
+                .map_err(|err| {
+                    error!(?err, "Fatal rekey error");
+                    Error::Encryption(err)
+                })
+        })?;
+
+        let data_encryption_nonce = Nonce::default();
+
+        let mut conn = self.db.get().await?;
+        let new_root_key_history_id: i32 = conn
+            .transaction(async |conn| {
+                let new_id = insert_into(schema::root_key_history::table)
+                    .values(&models::NewRootKeyHistory {
+                        ciphertext: new_ciphertext,
+                        tag: v1::ROOT_KEY_TAG.to_vec(),
+                        root_key_encryption_nonce: new_nonce.to_vec(),
+                        data_encryption_nonce: data_encryption_nonce.to_vec(),
+                        schema_version: 1,
+                        salt: new_salt.to_vec(),
+                    })
+                    .returning(schema::root_key_history::id)
+                    .get_result::<i32>(&mut *conn)
+                    .await?;
+
+                update(schema::arbiter_settings::table)
+                    .set(schema::arbiter_settings::root_key_id.eq(new_id))
+                    .execute(&mut *conn)
+                    .await?;
+
+                Result::<_, diesel::result::Error>::Ok(new_id)
+            })
+            .await?;
+
+        *root_key_history_id = RootKeyHistoryId::from_raw(new_root_key_history_id);
+        info!("Vault root key rekeyed successfully");
+        Ok(())
+    }
+
+    #[message]
+    pub async fn seal(&mut self) -> Result<(), Error> {
+        let Unsealed {
+            root_key_history_id,
+            ..
+        } = Self::expect_unsealed(&mut self.state)?;
+
+        self.state = State::Sealed {
+            root_key_history_id: *root_key_history_id,
+        };
+        let _ = self.events.tell(Publish(events::VaultResealed)).await;
+        Ok(())
+    }
+}
+
+// Server-side cryptographic operations
+#[messages]
+impl Vault {
     #[message]
     pub async fn decrypt(&mut self, aead_id: i32) -> Result<SafeCell<Vec<u8>>, Error> {
         let Unsealed { root_key, .. } = Self::expect_unsealed(&mut self.state)?;
@@ -354,12 +423,10 @@ impl Vault {
             root_key_history_id,
         } = Self::expect_unsealed(&mut self.state)?;
 
-        let mut hmac = root_key
+        let mut hmac = root_key.0.read_inline(|k| {
-            .0
+            HmacSha256::new_from_slice(k)
-            .read_inline(|k| match HmacSha256::new_from_slice(k) {
+                .unwrap_or_else(|_| unreachable!("HMAC accepts keys of any size"))
-                Ok(v) => v,
+        });
-                Err(_) => unreachable!("HMAC accepts keys of any size"),
-            });
         hmac.update(&root_key_history_id.to_raw().to_be_bytes());
         hmac.update(&mac_input);
 
@@ -383,37 +450,20 @@ impl Vault {
             return Ok(false);
         }
 
-        let mut hmac = root_key
+        let mut hmac = root_key.0.read_inline(|k| {
-            .0
+            HmacSha256::new_from_slice(k)
-            .read_inline(|k| match HmacSha256::new_from_slice(k) {
+                .unwrap_or_else(|_| unreachable!("HMAC accepts keys of any size"))
-                Ok(v) => v,
+        });
-                Err(_) => unreachable!("HMAC accepts keys of any size"),
-            });
         hmac.update(&key_version.to_raw().to_be_bytes());
         hmac.update(&mac_input);
 
         Ok(hmac.verify_slice(&expected_mac).is_ok())
     }
-
-    #[message]
-    pub async fn seal(&mut self) -> Result<(), Error> {
-        let Unsealed {
-            root_key_history_id,
-            ..
-        } = Self::expect_unsealed(&mut self.state)?;
-
-        self.state = State::Sealed {
-            root_key_history_id: *root_key_history_id,
-        };
-        let _ = self.events.tell(Publish(events::VaultResealed)).await;
-        Ok(())
-    }
 }
 
 #[cfg(test)]
 mod tests {
     use crate::actors::GlobalActors;
-    use crate::db::models::RootKeyHistory;
     use arbiter_crypto::safecell::SafeCellHandle as _;
 
     use super::*;
@@ -422,8 +472,7 @@ mod tests {
         let mut actor = Vault::new(db.clone(), GlobalActors::spawn_message_bus())
             .await
             .unwrap();
-        let seal_key = SafeCell::new(b"test-seal-key".to_vec());
+        actor.bootstrap(KeyCell::from([0u8; 32])).await.unwrap();
-        actor.bootstrap(seal_key).await.unwrap();
         actor
     }
 
@@ -432,12 +481,12 @@ mod tests {
     async fn nonce_monotonic_even_when_nonce_allocation_interleaves() {
         let db = db::create_test_pool().await;
         let mut actor = bootstrapped_actor(&db).await;
-        let root_key_history_id = match actor.state {
+        let State::Unsealed(Unsealed {
-            State::Unsealed(Unsealed {
+            root_key_history_id,
-                root_key_history_id,
+            ..
-                ..
+        }) = actor.state
-            }) => root_key_history_id,
+        else {
-            _ => panic!("expected unsealed state"),
+            panic!("expected unsealed state");
         };
 
         let n1 = Vault::get_new_nonce(&db, root_key_history_id)

server/crates/arbiter-server/src/actors/vault_coordinator/mod.rs

@@ -0,0 +1,721 @@
+use std::collections::HashMap;
+
+use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
+use diesel::{ExpressionMethods as _, QueryDsl};
+use diesel_async::RunQueryDsl;
+use kameo::{Actor, actor::ActorRef, messages};
+use rand_core::{OsRng, RngCore as _};
+use tracing::error;
+
+use crate::{
+    actors::vault::{Bootstrap, RekeyRootKey, TryUnseal, Vault},
+    crypto::{KeyCell, derive_key, encryption::v1::Nonce, shamir, shamir::shamir_threshold},
+    db::{self, models, schema},
+};
+
+#[derive(Debug, thiserror::Error)]
+pub enum Error {
+    #[error("Already coordinating a bootstrap")]
+    AlreadyBootstrapping,
+    #[error("Already coordinating an unseal")]
+    AlreadyUnsealing,
+    #[error("Rekey not in progress")]
+    NotRekeying,
+    #[error("Bootstrap not in progress")]
+    NotBootstrapping,
+    #[error("Unseal not in progress")]
+    NotUnsealing,
+    #[error("Operator already contributed")]
+    DuplicateContribution,
+    #[error("Operator not found in database")]
+    OperatorNotFound,
+    #[error("Invalid passphrase (decryption failed)")]
+    InvalidPassphrase,
+    #[error("Shamir error: {0}")]
+    Shamir(String),
+    #[error("Database connection error: {0}")]
+    DatabaseConnection(#[from] db::PoolError),
+    #[error("Database query error: {0}")]
+    DatabaseQuery(#[from] diesel::result::Error),
+    #[error("Encryption error")]
+    Encryption,
+    #[error("Vault error")]
+    VaultError,
+    #[error("Two-operator vaults require at least one recovery share")]
+    TwoOperatorsRequireRecovery,
+    #[error("Broken database")]
+    BrokenDatabase,
+}
+
+// Passphrases stored as plain Vec<u8> (not SafeCell) so CoordinatorState is Sync.
+// They are ephemeral and dropped immediately after use.
+enum CoordinatorState {
+    Idle,
+    Bootstrapping {
+        declared_count: usize,
+        recovery_count: usize,
+        passphrases: HashMap<i32, Vec<u8>>,
+        recovery_passphrases: HashMap<i32, Vec<u8>>,
+    },
+    Unsealing {
+        threshold: usize,
+        ordinary_passphrases: HashMap<i32, Vec<u8>>,
+        recovery_passphrases: HashMap<i32, Vec<u8>>,
+    },
+    /// Shamir re-key after `replace_operator` or `trigger_rekey` is approved (§3.3).
+    /// Collects new passphrases from all current operators, then generates a fresh seal key,
+    /// re-splits it, and re-encrypts the vault root key.
+    Rekeying {
+        ordinary_count: usize,
+        recovery_count: usize,
+        passphrases: HashMap<i32, Vec<u8>>,
+        recovery_passphrases: HashMap<i32, Vec<u8>>,
+    },
+}
+
+#[derive(Actor)]
+pub struct VaultCoordinator {
+    db: db::DatabasePool,
+    vault: ActorRef<Vault>,
+    state: CoordinatorState,
+}
+
+impl VaultCoordinator {
+    pub const fn new(db: db::DatabasePool, vault: ActorRef<Vault>) -> Self {
+        Self {
+            db,
+            vault,
+            state: CoordinatorState::Idle,
+        }
+    }
+}
+
+const SHARE_AAD: &[u8] = b"arbiter/shamir-share/v1";
+
+fn encrypt_share(
+    passphrase_bytes: Vec<u8>,
+    share: &[u8],
+) -> Result<(Vec<u8>, Vec<u8>, Vec<u8>), Error> {
+    let mut share_salt = vec![0u8; 32];
+    OsRng.fill_bytes(&mut share_salt);
+
+    let mut passphrase_cell = SafeCell::new(passphrase_bytes);
+    let mut share_seal_key = derive_key(&mut passphrase_cell, &share_salt);
+
+    let nonce = Nonce::default();
+    let encrypted_share = share_seal_key
+        .encrypt(&nonce, SHARE_AAD, share)
+        .map_err(|_| Error::Encryption)?;
+
+    Ok((encrypted_share, nonce.to_vec(), share_salt))
+}
+
+fn decrypt_share(
+    passphrase_bytes: Vec<u8>,
+    encrypted_share: Vec<u8>,
+    share_nonce_bytes: &[u8],
+    share_salt: &[u8],
+    operator_id: i32,
+) -> Result<Vec<u8>, Error> {
+    let nonce = Nonce::try_from(share_nonce_bytes).map_err(|()| {
+        error!(operator_id, "Invalid nonce in DB");
+        Error::BrokenDatabase
+    })?;
+
+    let mut passphrase_cell = SafeCell::new(passphrase_bytes);
+    let mut share_seal_key = derive_key(&mut passphrase_cell, share_salt);
+
+    let mut share_buffer = SafeCell::new(encrypted_share);
+    share_seal_key
+        .decrypt_in_place(&nonce, SHARE_AAD, &mut share_buffer)
+        .map_err(|_| Error::InvalidPassphrase)?;
+
+    Ok(share_buffer.read().clone())
+}
+
+/// §3.4: Split the seal key across ordinary + recovery operators.
+/// Threshold = `shamir_threshold(ordinary_count)`; total shares = ordinary + recovery.
+/// When `ordinary_count` == 1 (threshold = 1), vsss-rs does not support a proper split,
+/// so each share is the seal key itself — any single participant can reconstruct.
+async fn finalize_bootstrap(
+    db: db::DatabasePool,
+    vault: ActorRef<Vault>,
+    ordinary_passphrases: HashMap<i32, Vec<u8>>,
+    recovery_passphrases: HashMap<i32, Vec<u8>>,
+) -> Result<(), Error> {
+    let ordinary_count = ordinary_passphrases.len();
+    let recovery_count = recovery_passphrases.len();
+    let total = ordinary_count + recovery_count;
+    let threshold = shamir_threshold(ordinary_count);
+
+    let mut seal_key_bytes = [0u8; 32];
+    OsRng.fill_bytes(&mut seal_key_bytes);
+
+    // threshold == 1 means any single share reconstructs the key (degenerate split).
+    // vsss-rs requires threshold >= 2, so we store the key directly in this case.
+    let shares: Vec<Vec<u8>> = if threshold >= 2 {
+        shamir::split_key(threshold, total, &seal_key_bytes, OsRng)
+            .map_err(|e| Error::Shamir(e.to_string()))?
+    } else {
+        std::iter::repeat_with(|| seal_key_bytes.to_vec()).take(total).collect()
+    };
+
+    let seal_key = KeyCell::from(seal_key_bytes);
+
+    let mut conn = db.get().await?;
+    let mut shares_iter = shares.into_iter();
+
+    for (operator_id_raw, passphrase_bytes) in ordinary_passphrases {
+        let share = shares_iter
+            .next()
+            .expect("split_key returned enough shares");
+        let (encrypted_share, nonce_bytes, share_salt) = encrypt_share(passphrase_bytes, &share)?;
+
+        diesel::replace_into(schema::operator::table)
+            .values((
+                schema::operator::id.eq(Some(operator_id_raw)),
+                schema::operator::share.eq(&encrypted_share),
+                schema::operator::share_nonce.eq(&nonce_bytes),
+                schema::operator::share_salt.eq(&share_salt),
+                schema::operator::created_at.eq(models::SqliteTimestamp::now()),
+                schema::operator::updated_at.eq(models::SqliteTimestamp::now()),
+            ))
+            .execute(&mut conn)
+            .await?;
+    }
+
+    for (recovery_id_raw, passphrase_bytes) in recovery_passphrases {
+        let share = shares_iter
+            .next()
+            .expect("split_key returned enough shares");
+        let (encrypted_share, nonce_bytes, share_salt) = encrypt_share(passphrase_bytes, &share)?;
+
+        diesel::replace_into(schema::recovery_operator::table)
+            .values((
+                schema::recovery_operator::id.eq(recovery_id_raw),
+                schema::recovery_operator::share.eq(&encrypted_share),
+                schema::recovery_operator::share_nonce.eq(&nonce_bytes),
+                schema::recovery_operator::share_salt.eq(&share_salt),
+                schema::recovery_operator::created_at.eq(models::SqliteTimestamp::now()),
+                schema::recovery_operator::updated_at.eq(models::SqliteTimestamp::now()),
+            ))
+            .execute(&mut conn)
+            .await?;
+    }
+
+    vault.ask(Bootstrap { seal_key }).await.map_err(|err| {
+        error!(?err, "Vault bootstrap failed");
+        Error::VaultError
+    })?;
+
+    Ok(())
+}
+
+/// §3.5: Unseal using any threshold-sized mix of ordinary + recovery shares.
+async fn finalize_unseal(
+    db: db::DatabasePool,
+    vault: ActorRef<Vault>,
+    ordinary_passphrases: HashMap<i32, Vec<u8>>,
+    recovery_passphrases: HashMap<i32, Vec<u8>>,
+) -> Result<(), Error> {
+    let mut conn = db.get().await?;
+
+    // Determine whether shares were stored as raw keys (threshold=1) or vsss-rs splits (threshold>=2).
+    let ordinary_operator_count: i64 = schema::operator::table
+        .count()
+        .get_result(&mut conn)
+        .await?;
+    let threshold = shamir_threshold(ordinary_operator_count as usize);
+
+    let mut shares: Vec<Vec<u8>> = Vec::new();
+
+    for (operator_id_raw, passphrase_bytes) in ordinary_passphrases {
+        let (encrypted_share, share_nonce_bytes, share_salt): (Vec<u8>, Vec<u8>, Vec<u8>) =
+            schema::operator::table
+                .filter(schema::operator::id.eq(Some(operator_id_raw)))
+                .select((
+                    schema::operator::share,
+                    schema::operator::share_nonce,
+                    schema::operator::share_salt,
+                ))
+                .first(&mut conn)
+                .await
+                .map_err(|_| Error::OperatorNotFound)?;
+
+        shares.push(decrypt_share(
+            passphrase_bytes,
+            encrypted_share,
+            &share_nonce_bytes,
+            &share_salt,
+            operator_id_raw,
+        )?);
+    }
+
+    for (recovery_id_raw, passphrase_bytes) in recovery_passphrases {
+        let (encrypted_share, share_nonce_bytes, share_salt): (Vec<u8>, Vec<u8>, Vec<u8>) =
+            schema::recovery_operator::table
+                .find(recovery_id_raw)
+                .select((
+                    schema::recovery_operator::share,
+                    schema::recovery_operator::share_nonce,
+                    schema::recovery_operator::share_salt,
+                ))
+                .first(&mut conn)
+                .await
+                .map_err(|_| Error::OperatorNotFound)?;
+
+        shares.push(decrypt_share(
+            passphrase_bytes,
+            encrypted_share,
+            &share_nonce_bytes,
+            &share_salt,
+            recovery_id_raw,
+        )?);
+    }
+
+    // When threshold==1, shares are raw 32-byte seal keys (vsss-rs cannot split 1-of-N).
+    // Any single decrypted share is the key itself.
+    let seal_key_bytes: [u8; 32] = if threshold <= 1 {
+        let raw = shares
+            .into_iter()
+            .next()
+            .ok_or_else(|| Error::Shamir("No shares available".into()))?;
+        raw.try_into()
+            .map_err(|_| Error::Shamir("Invalid share length".into()))?
+    } else {
+        shamir::combine_shares(&shares).map_err(|e| Error::Shamir(e.to_string()))?
+    };
+
+    let seal_key = KeyCell::from(seal_key_bytes);
+
+    vault.ask(TryUnseal { seal_key }).await.map_err(|err| {
+        error!(?err, "Vault unseal failed");
+        Error::VaultError
+    })?;
+
+    Ok(())
+}
+
+/// §3.3: Generate a fresh seal key, split across current operators, re-encrypt the vault root key.
+/// Called after `replace_operator` or `trigger_rekey` is approved and all contributors submit.
+async fn finalize_rekey(
+    db: db::DatabasePool,
+    vault: ActorRef<Vault>,
+    ordinary_passphrases: HashMap<i32, Vec<u8>>,
+    recovery_passphrases: HashMap<i32, Vec<u8>>,
+) -> Result<(), Error> {
+    let ordinary_count = ordinary_passphrases.len();
+    let recovery_count = recovery_passphrases.len();
+    let total = ordinary_count + recovery_count;
+    let threshold = shamir_threshold(ordinary_count);
+
+    let mut new_seal_key_bytes = [0u8; 32];
+    OsRng.fill_bytes(&mut new_seal_key_bytes);
+
+    let shares: Vec<Vec<u8>> = if threshold >= 2 {
+        shamir::split_key(threshold, total, &new_seal_key_bytes, OsRng)
+            .map_err(|e| Error::Shamir(e.to_string()))?
+    } else {
+        std::iter::repeat_with(|| new_seal_key_bytes.to_vec())
+            .take(total)
+            .collect()
+    };
+
+    let mut conn = db.get().await?;
+    let mut shares_iter = shares.into_iter();
+
+    for (operator_id_raw, passphrase_bytes) in ordinary_passphrases {
+        let share = shares_iter
+            .next()
+            .expect("split_key returned enough shares");
+        let (encrypted_share, nonce_bytes, share_salt) = encrypt_share(passphrase_bytes, &share)?;
+
+        diesel::replace_into(schema::operator::table)
+            .values((
+                schema::operator::id.eq(Some(operator_id_raw)),
+                schema::operator::share.eq(&encrypted_share),
+                schema::operator::share_nonce.eq(&nonce_bytes),
+                schema::operator::share_salt.eq(&share_salt),
+                schema::operator::created_at.eq(models::SqliteTimestamp::now()),
+                schema::operator::updated_at.eq(models::SqliteTimestamp::now()),
+            ))
+            .execute(&mut conn)
+            .await?;
+    }
+
+    for (recovery_id_raw, passphrase_bytes) in recovery_passphrases {
+        let share = shares_iter
+            .next()
+            .expect("split_key returned enough shares");
+        let (encrypted_share, nonce_bytes, share_salt) = encrypt_share(passphrase_bytes, &share)?;
+
+        diesel::replace_into(schema::recovery_operator::table)
+            .values((
+                schema::recovery_operator::id.eq(recovery_id_raw),
+                schema::recovery_operator::share.eq(&encrypted_share),
+                schema::recovery_operator::share_nonce.eq(&nonce_bytes),
+                schema::recovery_operator::share_salt.eq(&share_salt),
+                schema::recovery_operator::created_at.eq(models::SqliteTimestamp::now()),
+                schema::recovery_operator::updated_at.eq(models::SqliteTimestamp::now()),
+            ))
+            .execute(&mut conn)
+            .await?;
+    }
+
+    drop(conn);
+
+    let new_seal_key = KeyCell::from(new_seal_key_bytes);
+    vault
+        .ask(RekeyRootKey { new_seal_key })
+        .await
+        .map_err(|err| {
+            error!(?err, "Vault rekey failed");
+            Error::VaultError
+        })?;
+
+    Ok(())
+}
+
+#[messages]
+impl VaultCoordinator {
+    /// Phase 1 of multi-operator bootstrap: declare the committee size.
+    #[message]
+    #[expect(clippy::unused_async, reason = "kameo requires messages to be async")]
+    pub async fn start_bootstrap(
+        &mut self,
+        operator_id: i32,
+        declared_count: usize,
+        recovery_count: usize,
+    ) -> Result<(), Error> {
+        let _ = operator_id; // fixme!: any authenticated operator may announce the committee size. the first call wins
+        if !matches!(self.state, CoordinatorState::Idle) {
+            return Err(Error::AlreadyBootstrapping);
+        }
+        if declared_count == 2 && recovery_count == 0 {
+            return Err(Error::TwoOperatorsRequireRecovery);
+        }
+        self.state = CoordinatorState::Bootstrapping {
+            declared_count,
+            recovery_count,
+            passphrases: HashMap::new(),
+            recovery_passphrases: HashMap::new(),
+        };
+        Ok(())
+    }
+
+    /// Phase 2 of multi-operator bootstrap: ordinary operator contributes a passphrase.
+    /// Returns Ok(true) when all ordinary + recovery operators contributed and bootstrap finalized.
+    #[message]
+    pub async fn contribute_bootstrap(
+        &mut self,
+        operator_id: i32,
+        mut passphrase: SafeCell<Vec<u8>>,
+    ) -> Result<bool, Error> {
+        let CoordinatorState::Bootstrapping {
+            declared_count,
+            recovery_count,
+            passphrases,
+            recovery_passphrases,
+        } = &mut self.state
+        else {
+            return Err(Error::NotBootstrapping);
+        };
+
+        if passphrases.contains_key(&operator_id) {
+            return Err(Error::DuplicateContribution);
+        }
+
+        let passphrase_bytes = passphrase.read().to_vec();
+        passphrases.insert(operator_id, passphrase_bytes);
+
+        if passphrases.len() < *declared_count || recovery_passphrases.len() < *recovery_count {
+            return Ok(false);
+        }
+
+        let CoordinatorState::Bootstrapping {
+            passphrases,
+            recovery_passphrases,
+            ..
+        } = std::mem::replace(&mut self.state, CoordinatorState::Idle)
+        else {
+            unreachable!()
+        };
+
+        finalize_bootstrap(
+            self.db.clone(),
+            self.vault.clone(),
+            passphrases,
+            recovery_passphrases,
+        )
+        .await?;
+        Ok(true)
+    }
+
+    /// Phase 2 of multi-operator bootstrap: recovery operator contributes a passphrase.
+    /// Returns Ok(true) when all contributors are in and bootstrap finalized.
+    #[message]
+    pub async fn contribute_recovery_bootstrap(
+        &mut self,
+        recovery_operator_id: i32,
+        mut passphrase: SafeCell<Vec<u8>>,
+    ) -> Result<bool, Error> {
+        let CoordinatorState::Bootstrapping {
+            declared_count,
+            recovery_count,
+            passphrases,
+            recovery_passphrases,
+        } = &mut self.state
+        else {
+            return Err(Error::NotBootstrapping);
+        };
+
+        if recovery_passphrases.contains_key(&recovery_operator_id) {
+            return Err(Error::DuplicateContribution);
+        }
+
+        let passphrase_bytes = passphrase.read().to_vec();
+        recovery_passphrases.insert(recovery_operator_id, passphrase_bytes);
+
+        if passphrases.len() < *declared_count || recovery_passphrases.len() < *recovery_count {
+            return Ok(false);
+        }
+
+        let CoordinatorState::Bootstrapping {
+            passphrases,
+            recovery_passphrases,
+            ..
+        } = std::mem::replace(&mut self.state, CoordinatorState::Idle)
+        else {
+            unreachable!()
+        };
+
+        finalize_bootstrap(
+            self.db.clone(),
+            self.vault.clone(),
+            passphrases,
+            recovery_passphrases,
+        )
+        .await?;
+        Ok(true)
+    }
+
+    /// Contribute a passphrase for vault unseal (ordinary operator).
+    /// Returns Ok(true) when threshold reached and vault is unsealed.
+    #[message]
+    pub async fn contribute_unseal(
+        &mut self,
+        operator_id: i32,
+        mut passphrase: SafeCell<Vec<u8>>,
+    ) -> Result<bool, Error> {
+        self.ensure_unsealing_state().await?;
+
+        let CoordinatorState::Unsealing {
+            threshold,
+            ordinary_passphrases,
+            recovery_passphrases,
+        } = &mut self.state
+        else {
+            return Err(Error::NotUnsealing);
+        };
+
+        if ordinary_passphrases.contains_key(&operator_id) {
+            return Err(Error::DuplicateContribution);
+        }
+
+        let passphrase_bytes = passphrase.read().to_vec();
+        ordinary_passphrases.insert(operator_id, passphrase_bytes);
+
+        if ordinary_passphrases.len() + recovery_passphrases.len() < *threshold {
+            return Ok(false);
+        }
+
+        self.do_finalize_unseal().await
+    }
+
+    /// Contribute a passphrase for vault unseal (recovery operator, §3.5).
+    /// Recovery operators may contribute during unseal when recovery is active.
+    /// Returns Ok(true) when threshold reached and vault is unsealed.
+    #[message]
+    pub async fn contribute_recovery_unseal(
+        &mut self,
+        recovery_operator_id: i32,
+        mut passphrase: SafeCell<Vec<u8>>,
+    ) -> Result<bool, Error> {
+        self.ensure_unsealing_state().await?;
+
+        let CoordinatorState::Unsealing {
+            threshold,
+            ordinary_passphrases,
+            recovery_passphrases,
+        } = &mut self.state
+        else {
+            return Err(Error::NotUnsealing);
+        };
+
+        if recovery_passphrases.contains_key(&recovery_operator_id) {
+            return Err(Error::DuplicateContribution);
+        }
+
+        let passphrase_bytes = passphrase.read().to_vec();
+        recovery_passphrases.insert(recovery_operator_id, passphrase_bytes);
+
+        if ordinary_passphrases.len() + recovery_passphrases.len() < *threshold {
+            return Ok(false);
+        }
+
+        self.do_finalize_unseal().await
+    }
+}
+
+impl VaultCoordinator {
+    /// Initializes `CoordinatorState::Unsealing` on first call if still `Idle`.
+    /// Threshold is based on ordinary operator count only (§3.4).
+    async fn ensure_unsealing_state(&mut self) -> Result<(), Error> {
+        if matches!(self.state, CoordinatorState::Idle) {
+            let mut conn = self.db.get().await?;
+            let ordinary_count: i64 = schema::operator::table
+                .count()
+                .get_result(&mut conn)
+                .await?;
+            let threshold = shamir_threshold(usize::try_from(ordinary_count).unwrap_or_default());
+            self.state = CoordinatorState::Unsealing {
+                threshold,
+                ordinary_passphrases: HashMap::new(),
+                recovery_passphrases: HashMap::new(),
+            };
+        }
+        Ok(())
+    }
+
+    /// Moves state back to Idle and calls finalize_unseal.
+    async fn do_finalize_unseal(&mut self) -> Result<bool, Error> {
+        let CoordinatorState::Unsealing {
+            ordinary_passphrases,
+            recovery_passphrases,
+            ..
+        } = std::mem::replace(&mut self.state, CoordinatorState::Idle)
+        else {
+            unreachable!()
+        };
+
+        finalize_unseal(
+            self.db.clone(),
+            self.vault.clone(),
+            ordinary_passphrases,
+            recovery_passphrases,
+        )
+        .await?;
+        Ok(true)
+    }
+
+    async fn do_finalize_rekey(&mut self) -> Result<bool, Error> {
+        let CoordinatorState::Rekeying {
+            passphrases,
+            recovery_passphrases,
+            ..
+        } = std::mem::replace(&mut self.state, CoordinatorState::Idle)
+        else {
+            unreachable!()
+        };
+
+        finalize_rekey(
+            self.db.clone(),
+            self.vault.clone(),
+            passphrases,
+            recovery_passphrases,
+        )
+        .await?;
+        Ok(true)
+    }
+}
+
+#[messages]
+impl VaultCoordinator {
+    /// Begin Shamir re-key after a key-rotation proposal is approved (§3.3).
+    /// Queries the current operator and recovery operator counts from the DB,
+    /// then transitions to Rekeying state awaiting contributions from all of them.
+    #[message]
+    pub async fn start_rekey(&mut self) -> Result<(), Error> {
+        if !matches!(self.state, CoordinatorState::Idle) {
+            return Err(Error::AlreadyBootstrapping);
+        }
+        let mut conn = self.db.get().await?;
+        let ordinary_count: i64 = schema::operator_identity::table
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        let recovery_count: i64 = schema::recovery_operator_identity::table
+            .count()
+            .get_result(&mut conn)
+            .await?;
+        self.state = CoordinatorState::Rekeying {
+            ordinary_count: ordinary_count as usize,
+            recovery_count: recovery_count as usize,
+            passphrases: HashMap::new(),
+            recovery_passphrases: HashMap::new(),
+        };
+        Ok(())
+    }
+
+    /// Contribute an ordinary operator passphrase for the re-key.
+    /// Returns Ok(true) when all contributors have submitted and the re-key is complete.
+    #[message]
+    pub async fn contribute_rekey(
+        &mut self,
+        operator_id: i32,
+        mut passphrase: SafeCell<Vec<u8>>,
+    ) -> Result<bool, Error> {
+        let CoordinatorState::Rekeying {
+            ordinary_count,
+            recovery_count,
+            passphrases,
+            recovery_passphrases,
+        } = &mut self.state
+        else {
+            return Err(Error::NotRekeying);
+        };
+
+        if passphrases.contains_key(&operator_id) {
+            return Err(Error::DuplicateContribution);
+        }
+
+        passphrases.insert(operator_id, passphrase.read().to_vec());
+
+        if passphrases.len() < *ordinary_count || recovery_passphrases.len() < *recovery_count {
+            return Ok(false);
+        }
+
+        self.do_finalize_rekey().await
+    }
+
+    /// Contribute a recovery operator passphrase for the re-key.
+    /// Returns Ok(true) when all contributors have submitted and the re-key is complete.
+    #[message]
+    pub async fn contribute_recovery_rekey(
+        &mut self,
+        recovery_operator_id: i32,
+        mut passphrase: SafeCell<Vec<u8>>,
+    ) -> Result<bool, Error> {
+        let CoordinatorState::Rekeying {
+            ordinary_count,
+            recovery_count,
+            passphrases,
+            recovery_passphrases,
+        } = &mut self.state
+        else {
+            return Err(Error::NotRekeying);
+        };
+
+        if recovery_passphrases.contains_key(&recovery_operator_id) {
+            return Err(Error::DuplicateContribution);
+        }
+
+        recovery_passphrases.insert(recovery_operator_id, passphrase.read().to_vec());
+
+        if passphrases.len() < *ordinary_count || recovery_passphrases.len() < *recovery_count {
+            return Ok(false);
+        }
+
+        self.do_finalize_rekey().await
+    }
+}

server/crates/arbiter-server/src/crypto/encryption/v1.rs

@@ -61,12 +61,12 @@ mod tests {
     #[test]
     fn derive_seal_key_deterministic() {
         static PASSWORD: &[u8] = b"password";
-        let password = SafeCell::new(PASSWORD.to_vec());
+        let mut password = SafeCell::new(PASSWORD.to_vec());
-        let password2 = SafeCell::new(PASSWORD.to_vec());
+        let mut password2 = SafeCell::new(PASSWORD.to_vec());
         let salt = generate_salt();
 
-        let mut key1 = derive_key(password, &salt);
+        let mut key1 = derive_key(&mut password, &salt);
-        let mut key2 = derive_key(password2, &salt);
+        let mut key2 = derive_key(&mut password2, &salt);
 
         let key1_reader = key1.0.read();
         let key2_reader = key2.0.read();
@@ -77,10 +77,10 @@ mod tests {
     #[test]
     fn successful_derive() {
         static PASSWORD: &[u8] = b"password";
-        let password = SafeCell::new(PASSWORD.to_vec());
+        let mut password = SafeCell::new(PASSWORD.to_vec());
         let salt = generate_salt();
 
-        let mut key = derive_key(password, &salt);
+        let mut key = derive_key(&mut password, &salt);
         let key_reader = key.0.read();
 
         assert_ne!(key_reader.as_slice(), &[0u8; 32][..]);

server/crates/arbiter-server/src/crypto/governance.rs

@@ -0,0 +1,99 @@
+//! Canonical encoding and verification of governance vote signatures (§3.3).
+
+use crate::db::models::ProposalId;
+use arbiter_crypto::authn::{self, SigningContext};
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq, thiserror::Error)]
+pub enum VerifyError {
+    #[error("Malformed operator public key")]
+    PublicKey,
+    #[error("Malformed vote signature")]
+    Signature,
+    #[error("Signature does not match this vote")]
+    Mismatch,
+}
+
+/// Canonical bytes an operator signs when voting: `proposal_id` as i64 big-endian,
+/// followed by the approve flag as one byte.
+///
+/// The flag is part of the message on purpose: without it an approval could be
+/// replayed as a rejection of the same proposal.
+#[must_use]
+pub fn vote_message(proposal_id: ProposalId, approve: bool) -> Vec<u8> {
+    let mut message = Vec::with_capacity(9);
+    message.extend_from_slice(&i64::from(proposal_id.to_raw()).to_be_bytes());
+    message.push(u8::from(approve));
+    message
+}
+
+/// Verifies a vote signature against an operator's stored public key.
+pub fn verify_vote(
+    public_key: &[u8],
+    proposal_id: ProposalId,
+    approve: bool,
+    signature: &[u8],
+) -> Result<(), VerifyError> {
+    let public_key = authn::PublicKey::try_from(public_key).map_err(|()| VerifyError::PublicKey)?;
+    let signature = authn::Signature::try_from(signature).map_err(|()| VerifyError::Signature)?;
+
+    if public_key.verify_message(
+        &vote_message(proposal_id, approve),
+        SigningContext::GovernanceVote,
+        &signature,
+    ) {
+        Ok(())
+    } else {
+        Err(VerifyError::Mismatch)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::{VerifyError, verify_vote, vote_message};
+    use crate::db::models::ProposalId;
+    use arbiter_crypto::authn::{SigningContext, SigningKey};
+
+    #[test]
+    fn vote_message_is_the_id_then_the_approve_flag() {
+        let message = vote_message(ProposalId::from_raw(0x0102), true);
+        assert_eq!(message, vec![0, 0, 0, 0, 0, 0, 1, 2, 1]);
+    }
+
+    #[test]
+    fn verify_vote_accepts_a_matching_signature() {
+        let key = SigningKey::generate();
+        let id = ProposalId::from_raw(42);
+        let signature = key
+            .sign_message(&vote_message(id, true), SigningContext::GovernanceVote)
+            .unwrap();
+
+        verify_vote(
+            &key.public_key().to_bytes(),
+            id,
+            true,
+            &signature.to_bytes(),
+        )
+        .expect("a signature over this exact vote must verify");
+    }
+
+    /// The decisive one: an approval must not verify as a rejection of the same
+    /// proposal, or a captured vote could be replayed with its meaning flipped.
+    #[test]
+    fn verify_vote_rejects_a_flipped_approve_flag() {
+        let key = SigningKey::generate();
+        let id = ProposalId::from_raw(42);
+        let signature = key
+            .sign_message(&vote_message(id, true), SigningContext::GovernanceVote)
+            .unwrap();
+
+        assert!(matches!(
+            verify_vote(
+                &key.public_key().to_bytes(),
+                id,
+                false,
+                &signature.to_bytes()
+            ),
+            Err(VerifyError::Mismatch)
+        ));
+    }
+}

server/crates/arbiter-server/src/crypto/integrity/v1.rs

@@ -215,8 +215,6 @@ mod tests {
         },
         db::{self, schema},
     };
-    use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
-
     use super::{Error, Integrable, sign_entity, verify_entity};
     #[derive(Clone, arbiter_macros::Hashable)]
     struct DummyEntity {
@@ -235,7 +233,7 @@ mod tests {
         );
         actor
             .ask(Bootstrap {
-                seal_key_raw: SafeCell::new(b"integrity-test-seal-key".to_vec()),
+                seal_key: crate::crypto::KeyCell::from([0u8; 32]),
             })
             .await
             .unwrap();

server/crates/arbiter-server/src/crypto/mod.rs

@@ -1,5 +1,5 @@
 use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
-use encryption::v1::{Nonce, Salt};
+use encryption::v1::Nonce;
 
 use argon2::{Algorithm, Argon2};
 use chacha20poly1305::{
@@ -12,7 +12,9 @@ use rand::{
 };
 
 pub mod encryption;
+pub mod governance;
 pub mod integrity;
+pub mod shamir;
 
 pub struct KeyCell(pub SafeCell<Key>);
 impl From<SafeCell<Key>> for KeyCell {
@@ -20,6 +22,15 @@ impl From<SafeCell<Key>> for KeyCell {
         Self(value)
     }
 }
+impl From<[u8; 32]> for KeyCell {
+    fn from(bytes: [u8; 32]) -> Self {
+        let cell = SafeCell::new_inline_default(|key: &mut Key| {
+            key.copy_from_slice(&bytes);
+        });
+        Self(cell)
+    }
+}
+
 impl TryFrom<SafeCell<Vec<u8>>> for KeyCell {
     type Error = ();
 
@@ -28,7 +39,7 @@ impl TryFrom<SafeCell<Vec<u8>>> for KeyCell {
         if value.len() != size_of::<Key>() {
             return Err(());
         }
-        let cell = SafeCell::new_inline(|cell_write: &mut Key| {
+        let cell = SafeCell::new_inline_default(|cell_write: &mut Key| {
             cell_write.copy_from_slice(&value);
         });
         Ok(Self(cell))
@@ -37,7 +48,7 @@ impl TryFrom<SafeCell<Vec<u8>>> for KeyCell {
 
 impl KeyCell {
     pub fn new_secure_random() -> Self {
-        let key = SafeCell::new_inline(|key_buffer: &mut Key| {
+        let key = SafeCell::new_inline_default(|key_buffer: &mut Key| {
             let mut rng = StdRng::try_from_rng(&mut SysRng)
                 .expect("Rng failure is unrecoverable and should panic");
             rng.fill_bytes(key_buffer);
@@ -94,7 +105,7 @@ impl KeyCell {
 }
 
 /// Derive a fixed-length key from the password using Argon2id, which is designed for password hashing and key derivation.
-pub fn derive_key(mut password: SafeCell<Vec<u8>>, salt: &Salt) -> KeyCell {
+pub fn derive_key(password: &mut SafeCell<Vec<u8>>, salt: &[u8]) -> KeyCell {
     let params = {
         #[cfg(debug_assertions)]
         {
@@ -132,10 +143,10 @@ mod tests {
     #[test]
     fn encrypt_decrypt() {
         static PASSWORD: &[u8] = b"password";
-        let password = SafeCell::new(PASSWORD.to_vec());
+        let mut password = SafeCell::new(PASSWORD.to_vec());
         let salt = generate_salt();
 
-        let mut key = derive_key(password, &salt);
+        let mut key = derive_key(&mut password, &salt);
         let nonce = Nonce(*b"unique nonce 123 1231233"); // 24 bytes for XChaCha20Poly1305
         let associated_data = b"associated data";
         let mut buffer = b"secret data".to_vec();

server/crates/arbiter-server/src/crypto/shamir.rs

@@ -0,0 +1,41 @@
+use vsss_rs::Gf256;
+
+#[derive(Debug, thiserror::Error)]
+pub enum ShamirError {
+    #[error("Failed to split key: {0}")]
+    Split(String),
+    #[error("Failed to combine shares: {0}")]
+    Combine(String),
+}
+
+/// Split `key` into `total` shares where any `threshold` shares can reconstruct it.
+/// Each returned Vec<u8> is a share with format [`identifier_byte`, `value_bytes`...].
+pub fn split_key(
+    threshold: usize,
+    total: usize,
+    key: &[u8; 32],
+    rng: impl rand_core::RngCore + rand_core::CryptoRng,
+) -> Result<Vec<Vec<u8>>, ShamirError> {
+    Gf256::split_array(threshold, total, key.as_slice(), rng)
+        .map_err(|e| ShamirError::Split(format!("{e:?}")))
+}
+
+/// Returns the minimum number of shares required to reconstruct the secret
+/// for a committee of `n` operators.
+#[must_use]
+pub const fn shamir_threshold(n: usize) -> usize {
+    match n {
+        0 => panic!("No operators"),
+        1 => 1,
+        2 => 2,
+        n => n / 2 + 1,
+    }
+}
+
+/// Reconstruct the secret from `threshold` or more shares.
+pub fn combine_shares(shares: &[Vec<u8>]) -> Result<[u8; 32], ShamirError> {
+    let bytes = Gf256::combine_array(shares)
+        .map_err(|e| ShamirError::Combine(format!("{e:?}")))?;
+    <[u8; 32]>::try_from(bytes.as_slice())
+        .map_err(|_| ShamirError::Combine("unexpected reconstructed key length".to_owned()))
+}

server/crates/arbiter-server/src/db/functions.rs

@@ -0,0 +1,12 @@
+//! Typed bindings for the SQLite scalar functions used in Diesel expressions.
+
+use diesel::sql_types::{Integer, Text};
+
+diesel::define_sql_function! {
+    /// SQLite `unixepoch(modifier)` -- seconds since the Unix epoch.
+    ///
+    /// Declared so timestamp comparisons are built by the query DSL instead of by
+    /// `format!`-ing a SQL fragment: the argument becomes a bind parameter and the
+    /// result type is checked against the column it is compared with.
+    fn unixepoch(modifier: Text) -> Integer;
+}

server/crates/arbiter-server/src/db/mod.rs

@@ -8,7 +8,9 @@ use diesel_migrations::{EmbeddedMigrations, MigrationHarness, embed_migrations};
 use thiserror::Error;
 use tracing::info;
 
+pub mod functions;
 pub mod models;
+pub mod proposal;
 pub mod schema;
 
 pub type DatabaseConnection = SyncConnectionWrapper<SqliteConnection>;

server/crates/arbiter-server/src/db/models.rs

@@ -9,16 +9,18 @@ use crate::db::schema::{
     integrity_envelope, root_key_history, tls_history,
 };
 
+use crate::db::proposal::ProposalKindTag;
 use diesel::{prelude::*, sqlite::Sqlite};
 use restructed::Models;
 
 pub mod types {
     use chrono::{DateTime, Utc};
     use diesel::{
+        backend::Backend,
         deserialize::{FromSql, FromSqlRow},
         expression::AsExpression,
         serialize::{IsNull, ToSql},
-        sql_types::Integer,
+        sql_types::{Integer, Text},
         sqlite::{Sqlite, SqliteType},
     };
 
@@ -61,7 +63,7 @@ pub mod types {
 
     impl FromSql<Integer, Sqlite> for SqliteTimestamp {
         fn from_sql(
-            mut bytes: <Sqlite as diesel::backend::Backend>::RawValue<'_>,
+            mut bytes: <Sqlite as Backend>::RawValue<'_>,
         ) -> diesel::deserialize::Result<Self> {
             let Some(SqliteType::Long) = bytes.value_type() else {
                 return Err(format!(
@@ -141,6 +143,42 @@ pub mod types {
     declare_id!(TlsHistoryId);
     declare_id!(EvmWalletId);
     declare_id!(ClientId);
+    declare_id!(ProposalId);
+    declare_id!(RecoveryOperatorIdentityId);
+
+    #[derive(Debug, Clone, PartialEq, Eq, AsExpression, FromSqlRow)]
+    #[diesel(sql_type = Text)]
+    pub enum ProposalStatus {
+        Pending,
+        Approved,
+        Rejected,
+    }
+
+    impl ToSql<Text, Sqlite> for ProposalStatus {
+        fn to_sql<'b>(
+            &'b self,
+            out: &mut diesel::serialize::Output<'b, '_, Sqlite>,
+        ) -> diesel::serialize::Result {
+            let s: &str = match self {
+                Self::Pending => "pending",
+                Self::Approved => "approved",
+                Self::Rejected => "rejected",
+            };
+            <str as ToSql<Text, Sqlite>>::to_sql(s, out)
+        }
+    }
+
+    impl FromSql<Text, Sqlite> for ProposalStatus {
+        fn from_sql(bytes: <Sqlite as Backend>::RawValue<'_>) -> diesel::deserialize::Result<Self> {
+            let s = <String as FromSql<Text, Sqlite>>::from_sql(bytes)?;
+            match s.as_str() {
+                "pending" => Ok(Self::Pending),
+                "approved" => Ok(Self::Approved),
+                "rejected" => Ok(Self::Rejected),
+                other => Err(format!("Unknown proposal status: {other}").into()),
+            }
+        }
+    }
 }
 pub use types::*;
 
@@ -285,6 +323,7 @@ pub struct Operator {
     pub id: OperatorId,
     pub share: Vec<u8>,
     pub share_nonce: Vec<u8>,
+    pub share_salt: Vec<u8>,
     pub created_at: SqliteTimestamp,
     pub updated_at: SqliteTimestamp,
 }
@@ -437,3 +476,58 @@ pub struct IntegrityEnvelope {
     pub signed_at: SqliteTimestamp,
     pub created_at: SqliteTimestamp,
 }
+
+#[derive(Debug, Queryable, Selectable, Identifiable)]
+#[diesel(table_name = schema::proposal, check_for_backend(Sqlite))]
+pub struct Proposal {
+    pub id: ProposalId,
+    pub kind: ProposalKindTag,
+    pub initiator_id: OperatorIdentityId,
+    pub created_at: SqliteTimestamp,
+    pub expires_at: SqliteTimestamp,
+    pub status: ProposalStatus,
+}
+
+#[derive(Debug, Insertable)]
+#[diesel(table_name = schema::proposal, check_for_backend(Sqlite))]
+pub struct NewProposal {
+    pub kind: ProposalKindTag,
+    pub initiator_id: OperatorIdentityId,
+    // status defaults to 'pending' at the DB layer
+    pub expires_at: SqliteTimestamp,
+}
+
+#[derive(Debug, Queryable, Selectable, Identifiable)]
+#[diesel(table_name = schema::proposal_vote, check_for_backend(Sqlite))]
+pub struct ProposalVote {
+    pub id: i32,
+    pub proposal_id: ProposalId,
+    pub operator_id: OperatorIdentityId,
+    pub approve: bool,
+    pub signature: Vec<u8>,
+    pub voted_at: SqliteTimestamp,
+}
+
+#[derive(Debug, Insertable)]
+#[diesel(table_name = schema::proposal_vote, check_for_backend(Sqlite))]
+pub struct NewProposalVote {
+    pub proposal_id: ProposalId,
+    pub operator_id: OperatorIdentityId,
+    pub approve: bool,
+    pub signature: Vec<u8>,
+}
+
+#[derive(Debug, Insertable)]
+#[diesel(table_name = schema::recovery_proposal_vote, check_for_backend(Sqlite))]
+pub struct NewRecoveryProposalVote {
+    pub proposal_id: ProposalId,
+    pub recovery_operator_id: RecoveryOperatorIdentityId,
+    pub approve: bool,
+    pub signature: Vec<u8>,
+}
+
+#[derive(Debug, Insertable)]
+#[diesel(table_name = schema::recovery_wakeup_request, check_for_backend(Sqlite))]
+pub struct NewRecoveryWakeupRequest {
+    pub requested_by: OperatorIdentityId,
+}

server/crates/arbiter-server/src/db/proposal/approve_sdk_client.rs

@@ -0,0 +1,48 @@
+//! Approving an SDK client so it may authenticate against the vault.
+
+use super::{Proposal, ProposalKindTag};
+use crate::db::{
+    DatabaseConnection, models::ProposalId, schema::proposal_approve_sdk_client as table,
+};
+use diesel::{
+    ExpressionMethods as _, Insertable, QueryDsl as _, QueryResult, Queryable, Selectable,
+    SelectableHelper as _, sqlite::Sqlite,
+};
+use diesel_async::RunQueryDsl as _;
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq, Queryable, Selectable, Insertable)]
+#[diesel(table_name = table, check_for_backend(Sqlite))]
+pub struct Settings {
+    pub client_id: i32,
+}
+
+pub struct ApproveSdkClient;
+
+impl Proposal for ApproveSdkClient {
+    const KIND: ProposalKindTag = ProposalKindTag::ApproveSdkClient;
+
+    type Settings = Settings;
+
+    async fn insert(
+        proposal_id: ProposalId,
+        settings: &Self::Settings,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<()> {
+        diesel::insert_into(table::table)
+            .values((table::proposal_id.eq(proposal_id), settings))
+            .execute(conn)
+            .await
+            .map(drop)
+    }
+
+    async fn load(
+        proposal_id: ProposalId,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<Self::Settings> {
+        table::table
+            .find(proposal_id)
+            .select(Settings::as_select())
+            .first(conn)
+            .await
+    }
+}

server/crates/arbiter-server/src/db/proposal/grant_wallet_access.rs

@@ -0,0 +1,49 @@
+//! Granting an SDK client visibility of a wallet.
+
+use super::{Proposal, ProposalKindTag};
+use crate::db::{
+    DatabaseConnection, models::ProposalId, schema::proposal_grant_wallet_access as table,
+};
+use diesel::{
+    ExpressionMethods as _, Insertable, QueryDsl as _, QueryResult, Queryable, Selectable,
+    SelectableHelper as _, sqlite::Sqlite,
+};
+use diesel_async::RunQueryDsl as _;
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq, Queryable, Selectable, Insertable)]
+#[diesel(table_name = table, check_for_backend(Sqlite))]
+pub struct Settings {
+    pub wallet_id: i32,
+    pub client_id: i32,
+}
+
+pub struct GrantWalletAccess;
+
+impl Proposal for GrantWalletAccess {
+    const KIND: ProposalKindTag = ProposalKindTag::GrantWalletAccess;
+
+    type Settings = Settings;
+
+    async fn insert(
+        proposal_id: ProposalId,
+        settings: &Self::Settings,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<()> {
+        diesel::insert_into(table::table)
+            .values((table::proposal_id.eq(proposal_id), settings))
+            .execute(conn)
+            .await
+            .map(drop)
+    }
+
+    async fn load(
+        proposal_id: ProposalId,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<Self::Settings> {
+        table::table
+            .find(proposal_id)
+            .select(Settings::as_select())
+            .first(conn)
+            .await
+    }
+}

server/crates/arbiter-server/src/db/proposal/mod.rs

@@ -0,0 +1,243 @@
+//! Governed actions and the parameters they carry.
+//!
+//! Laid out the way [`crate::evm::policies::Policy`] is: a unit type per kind, its
+//! parameters as an associated `Settings`, and the persistence for those parameters
+//! implemented next to them. Everything downstream is generic over [`Proposal`], so a
+//! new kind is a new module plus one arm in each dispatcher -- nothing else in the
+//! codebase has to learn about it.
+
+use crate::db::{DatabaseConnection, models::ProposalId};
+use diesel::{
+    QueryResult,
+    backend::Backend,
+    deserialize::{FromSql, FromSqlRow},
+    expression::AsExpression,
+    serialize::ToSql,
+    sql_types::Text,
+    sqlite::Sqlite,
+};
+use strum::{Display, EnumDiscriminants, EnumString, IntoStaticStr};
+
+pub mod approve_sdk_client;
+pub mod grant_wallet_access;
+pub mod one_off_transaction;
+pub mod persistent_grant;
+pub mod replace_operator;
+pub mod trigger_rekey;
+
+pub use approve_sdk_client::ApproveSdkClient;
+pub use grant_wallet_access::GrantWalletAccess;
+pub use one_off_transaction::OneOffTransaction;
+pub use persistent_grant::PersistentGrant;
+pub use replace_operator::ReplaceOperator;
+pub use trigger_rekey::TriggerRekey;
+
+/// A governed action that owns the child table holding its parameters.
+pub trait Proposal: Sized {
+    /// The value stored in `proposal.kind` for this action.
+    const KIND: ProposalKindTag;
+
+    /// Parameters the action is voted on with.
+    type Settings: Send + Sync + 'static;
+
+    /// Writes the child row carrying `settings`.
+    fn insert(
+        proposal_id: ProposalId,
+        settings: &Self::Settings,
+        conn: &mut DatabaseConnection,
+    ) -> impl Future<Output = QueryResult<()>> + Send;
+
+    /// Reads the child row back. A missing row surfaces as [`diesel::result::Error::NotFound`],
+    /// which is what a proposal without its parameters is.
+    fn load(
+        proposal_id: ProposalId,
+        conn: &mut DatabaseConnection,
+    ) -> impl Future<Output = QueryResult<Self::Settings>> + Send;
+}
+
+/// Parameters of a proposal, in the one shape that can cross the actor boundary.
+///
+/// Every variant holds the `Settings` of the matching [`Proposal`] implementation, so
+/// the two cannot drift.
+#[derive(Debug, Clone, EnumDiscriminants)]
+#[strum_discriminants(
+    name(ProposalKindTag),
+    vis(pub),
+    derive(Display, EnumString, IntoStaticStr, AsExpression, FromSqlRow),
+    diesel(sql_type = Text),
+    strum(serialize_all = "snake_case")
+)]
+pub enum ProposalKind {
+    ApproveSdkClient(approve_sdk_client::Settings),
+    GrantWalletAccess(grant_wallet_access::Settings),
+    ReplaceOperator(replace_operator::Settings),
+    TriggerRekey,
+    ApprovePersistentGrant(Box<persistent_grant::Settings>),
+    ApproveOneOffTransaction(Box<one_off_transaction::Settings>),
+}
+
+impl ProposalKindTag {
+    /// Key-rotation proposals require every operator to approve (§3.3).
+    #[must_use]
+    pub const fn requires_full_quorum(self) -> bool {
+        matches!(self, Self::ReplaceOperator | Self::TriggerRekey)
+    }
+}
+
+/// Pins every implementation to the variant it is dispatched from. Without this a
+/// mistyped `KIND` would compile and only show up as a proposal stored under the
+/// wrong `proposal.kind`.
+const _: () = {
+    assert!(
+        matches!(ApproveSdkClient::KIND, ProposalKindTag::ApproveSdkClient),
+        "ApproveSdkClient::KIND must be ProposalKindTag::ApproveSdkClient"
+    );
+    assert!(
+        matches!(GrantWalletAccess::KIND, ProposalKindTag::GrantWalletAccess),
+        "GrantWalletAccess::KIND must be ProposalKindTag::GrantWalletAccess"
+    );
+    assert!(
+        matches!(ReplaceOperator::KIND, ProposalKindTag::ReplaceOperator),
+        "ReplaceOperator::KIND must be ProposalKindTag::ReplaceOperator"
+    );
+    assert!(
+        matches!(TriggerRekey::KIND, ProposalKindTag::TriggerRekey),
+        "TriggerRekey::KIND must be ProposalKindTag::TriggerRekey"
+    );
+    assert!(
+        matches!(
+            PersistentGrant::KIND,
+            ProposalKindTag::ApprovePersistentGrant
+        ),
+        "PersistentGrant::KIND must be ProposalKindTag::ApprovePersistentGrant"
+    );
+    assert!(
+        matches!(
+            OneOffTransaction::KIND,
+            ProposalKindTag::ApproveOneOffTransaction
+        ),
+        "OneOffTransaction::KIND must be ProposalKindTag::ApproveOneOffTransaction"
+    );
+};
+
+/// Writes the child row carrying this proposal's parameters.
+///
+/// The only place the create path has to know every kind; each arm hands straight off
+/// to the implementation that owns the table.
+pub async fn insert_kind(
+    conn: &mut DatabaseConnection,
+    proposal_id: ProposalId,
+    kind: &ProposalKind,
+) -> QueryResult<()> {
+    match kind {
+        ProposalKind::ApproveSdkClient(s) => ApproveSdkClient::insert(proposal_id, s, conn).await,
+        ProposalKind::GrantWalletAccess(s) => GrantWalletAccess::insert(proposal_id, s, conn).await,
+        ProposalKind::ReplaceOperator(s) => ReplaceOperator::insert(proposal_id, s, conn).await,
+        ProposalKind::TriggerRekey => TriggerRekey::insert(proposal_id, &(), conn).await,
+        ProposalKind::ApprovePersistentGrant(s) => {
+            PersistentGrant::insert(proposal_id, s, conn).await
+        }
+        ProposalKind::ApproveOneOffTransaction(s) => {
+            OneOffTransaction::insert(proposal_id, s, conn).await
+        }
+    }
+}
+
+/// Reads the parameters back for a `proposal.kind` that is only known at runtime.
+pub async fn load_kind(
+    conn: &mut DatabaseConnection,
+    proposal_id: ProposalId,
+    tag: ProposalKindTag,
+) -> QueryResult<ProposalKind> {
+    Ok(match tag {
+        ProposalKindTag::ApproveSdkClient => {
+            ProposalKind::ApproveSdkClient(ApproveSdkClient::load(proposal_id, conn).await?)
+        }
+        ProposalKindTag::GrantWalletAccess => {
+            ProposalKind::GrantWalletAccess(GrantWalletAccess::load(proposal_id, conn).await?)
+        }
+        ProposalKindTag::ReplaceOperator => {
+            ProposalKind::ReplaceOperator(ReplaceOperator::load(proposal_id, conn).await?)
+        }
+        ProposalKindTag::TriggerRekey => {
+            TriggerRekey::load(proposal_id, conn).await?;
+            ProposalKind::TriggerRekey
+        }
+        ProposalKindTag::ApprovePersistentGrant => ProposalKind::ApprovePersistentGrant(Box::new(
+            PersistentGrant::load(proposal_id, conn).await?,
+        )),
+        ProposalKindTag::ApproveOneOffTransaction => ProposalKind::ApproveOneOffTransaction(
+            Box::new(OneOffTransaction::load(proposal_id, conn).await?),
+        ),
+    })
+}
+
+impl ToSql<Text, Sqlite> for ProposalKindTag {
+    fn to_sql<'b>(
+        &'b self,
+        out: &mut diesel::serialize::Output<'b, '_, Sqlite>,
+    ) -> diesel::serialize::Result {
+        <str as ToSql<Text, Sqlite>>::to_sql(<&'static str>::from(*self), out)
+    }
+}
+
+impl FromSql<Text, Sqlite> for ProposalKindTag {
+    fn from_sql(bytes: <Sqlite as Backend>::RawValue<'_>) -> diesel::deserialize::Result<Self> {
+        let s = <String as FromSql<Text, Sqlite>>::from_sql(bytes)?;
+        s.parse()
+            .map_err(|_| format!("Unknown proposal kind: {s}").into())
+    }
+}
+
+/// SQLite has no unsigned integers; the column is `BigInt`, so a value that does not
+/// round-trip is a corrupt row rather than something to silently wrap.
+pub(crate) fn as_i64(value: u64) -> QueryResult<i64> {
+    i64::try_from(value).map_err(|_| diesel::result::Error::SerializationError(Box::new(Overflow)))
+}
+
+pub(crate) fn as_u64(value: i64) -> QueryResult<u64> {
+    u64::try_from(value)
+        .map_err(|_| diesel::result::Error::DeserializationError(Box::new(Overflow)))
+}
+
+pub(crate) fn fixed_bytes<const N: usize>(
+    bytes: &[u8],
+    column: &'static str,
+) -> QueryResult<[u8; N]> {
+    <[u8; N]>::try_from(bytes)
+        .map_err(|_| diesel::result::Error::DeserializationError(Box::new(WrongLength(column))))
+}
+
+/// Reads a fixed-width column into an array, labelling failures with the column it came
+/// from.
+///
+/// The label is taken from the field itself, so renaming a column cannot leave a stale
+/// name behind in the error -- which is the whole reason this is a macro and not a
+/// second argument.
+///
+/// - `fixed!(row.column)` for a `Vec<u8>` field
+/// - `fixed!(opt row.column)` for a `Option<Vec<u8>>` one
+/// - `fixed!(binding)` for a local
+macro_rules! fixed {
+    (opt $src:ident.$field:ident) => {
+        $src.$field
+            .as_deref()
+            .map(|value| $crate::db::proposal::fixed_bytes(value, stringify!($field)))
+            .transpose()
+    };
+    ($src:ident.$field:ident) => {
+        $crate::db::proposal::fixed_bytes(&$src.$field, stringify!($field))
+    };
+    ($binding:ident) => {
+        $crate::db::proposal::fixed_bytes(&$binding, stringify!($binding))
+    };
+}
+pub(crate) use fixed;
+
+#[derive(Debug, thiserror::Error)]
+#[error("value does not fit a SQLite integer")]
+struct Overflow;
+
+#[derive(Debug, thiserror::Error)]
+#[error("column {0} has the wrong byte length")]
+struct WrongLength(&'static str);

server/crates/arbiter-server/src/db/proposal/one_off_transaction.rs

@@ -0,0 +1,138 @@
+//! Signing a single EIP-1559 transaction.
+
+use super::{Proposal, ProposalKindTag, as_i64, as_u64, fixed};
+use crate::db::{
+    DatabaseConnection,
+    models::ProposalId,
+    schema::{proposal_one_off_transaction, proposal_one_off_transaction_result},
+};
+use diesel::{
+    Insertable, QueryDsl as _, QueryResult, Queryable, Selectable, SelectableHelper as _,
+    sqlite::Sqlite,
+};
+use diesel_async::RunQueryDsl as _;
+
+#[derive(Debug, Clone, PartialEq, Eq)]
+pub struct Settings {
+    pub client_id: i32,
+    pub wallet_address: [u8; 20],
+    pub chain_id: u64,
+    pub nonce: u64,
+    pub gas_limit: u64,
+    pub max_fee_per_gas: u128,
+    pub max_priority_fee_per_gas: u128,
+    pub to: [u8; 20],
+    pub value: [u8; 32],
+    pub input: Vec<u8>,
+}
+
+#[derive(Debug, Queryable, Selectable, Insertable)]
+#[diesel(table_name = proposal_one_off_transaction, check_for_backend(Sqlite))]
+struct Row {
+    proposal_id: ProposalId,
+    client_id: i32,
+    wallet_address: Vec<u8>,
+    chain_id: i64,
+    nonce: i64,
+    gas_limit: i64,
+    max_fee_per_gas: Vec<u8>,
+    max_priority_fee_per_gas: Vec<u8>,
+    to_address: Vec<u8>,
+    value: Vec<u8>,
+    input: Vec<u8>,
+}
+
+impl Row {
+    fn new(proposal_id: ProposalId, settings: &Settings) -> QueryResult<Self> {
+        Ok(Self {
+            proposal_id,
+            client_id: settings.client_id,
+            wallet_address: settings.wallet_address.to_vec(),
+            chain_id: as_i64(settings.chain_id)?,
+            nonce: as_i64(settings.nonce)?,
+            gas_limit: as_i64(settings.gas_limit)?,
+            max_fee_per_gas: settings.max_fee_per_gas.to_be_bytes().to_vec(),
+            max_priority_fee_per_gas: settings.max_priority_fee_per_gas.to_be_bytes().to_vec(),
+            to_address: settings.to.to_vec(),
+            value: settings.value.to_vec(),
+            input: settings.input.clone(),
+        })
+    }
+
+    fn into_settings(self) -> QueryResult<Settings> {
+        Ok(Settings {
+            client_id: self.client_id,
+            wallet_address: fixed!(self.wallet_address)?,
+            chain_id: as_u64(self.chain_id)?,
+            nonce: as_u64(self.nonce)?,
+            gas_limit: as_u64(self.gas_limit)?,
+            max_fee_per_gas: u128::from_be_bytes(fixed!(self.max_fee_per_gas)?),
+            max_priority_fee_per_gas: u128::from_be_bytes(fixed!(self.max_priority_fee_per_gas)?),
+            to: fixed!(self.to_address)?,
+            value: fixed!(self.value)?,
+            input: self.input,
+        })
+    }
+}
+
+pub struct OneOffTransaction;
+
+impl Proposal for OneOffTransaction {
+    const KIND: ProposalKindTag = ProposalKindTag::ApproveOneOffTransaction;
+
+    type Settings = Settings;
+
+    async fn insert(
+        proposal_id: ProposalId,
+        settings: &Self::Settings,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<()> {
+        diesel::insert_into(proposal_one_off_transaction::table)
+            .values(&Row::new(proposal_id, settings)?)
+            .execute(conn)
+            .await
+            .map(drop)
+    }
+
+    async fn load(
+        proposal_id: ProposalId,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<Self::Settings> {
+        let row: Row = proposal_one_off_transaction::table
+            .find(proposal_id)
+            .select(Row::as_select())
+            .first(conn)
+            .await?;
+
+        row.into_settings()
+    }
+}
+
+/// The signature the vault produced for an approved transaction.
+#[derive(Debug, Insertable)]
+#[diesel(table_name = proposal_one_off_transaction_result, check_for_backend(Sqlite))]
+struct SignatureRow {
+    proposal_id: ProposalId,
+    r: Vec<u8>,
+    s: Vec<u8>,
+    y_parity: i32,
+}
+
+/// Records the signature produced for an approved transaction, by component, so what
+/// came back is as readable as what was signed.
+pub async fn store_signature(
+    proposal_id: ProposalId,
+    signature: &alloy::signers::Signature,
+    conn: &mut DatabaseConnection,
+) -> QueryResult<()> {
+    diesel::insert_into(proposal_one_off_transaction_result::table)
+        .values(&SignatureRow {
+            proposal_id,
+            r: signature.r().to_be_bytes::<32>().to_vec(),
+            s: signature.s().to_be_bytes::<32>().to_vec(),
+            y_parity: i32::from(signature.v()),
+        })
+        .execute(conn)
+        .await
+        .map(drop)
+}

server/crates/arbiter-server/src/db/proposal/persistent_grant.rs

@@ -0,0 +1,271 @@
+//! Creating a standing EVM grant.
+use super::{Proposal, ProposalKindTag, as_i64, as_u64, fixed};
+use crate::db::{
+    DatabaseConnection,
+    models::ProposalId,
+    schema::{
+        proposal_persistent_grant, proposal_persistent_grant_ether,
+        proposal_persistent_grant_ether_target, proposal_persistent_grant_token,
+        proposal_persistent_grant_token_limit,
+    },
+};
+use diesel::{
+    ExpressionMethods as _, Insertable, OptionalExtension as _, QueryDsl as _, QueryResult,
+    Queryable, Selectable, SelectableHelper as _, sqlite::Sqlite,
+};
+use diesel_async::RunQueryDsl as _;
+
+#[derive(Debug, Clone, PartialEq, Eq)]
+pub struct Settings {
+    pub wallet_access_id: i32,
+    pub chain_id: u64,
+    pub valid_from_secs: Option<i64>,
+    pub valid_until_secs: Option<i64>,
+    pub max_gas_fee_per_gas: Option<[u8; 32]>,
+    pub max_priority_fee_per_gas: Option<[u8; 32]>,
+    pub rate_limit: Option<RateLimit>,
+    pub specific: Specific,
+}
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq)]
+pub struct RateLimit {
+    pub count: u32,
+    pub window_secs: i64,
+}
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq)]
+pub struct VolumeLimit {
+    pub max_volume: [u8; 32],
+    pub window_secs: i64,
+}
+
+#[derive(Debug, Clone, PartialEq, Eq)]
+pub enum Specific {
+    EtherTransfer {
+        targets: Vec<[u8; 20]>,
+        limit: VolumeLimit,
+    },
+    TokenTransfer {
+        token_contract: [u8; 20],
+        receiver: Option<[u8; 20]>,
+        volume_limits: Vec<VolumeLimit>,
+    },
+}
+
+/// Shared settings, mirroring `evm_basic_grant`.
+#[derive(Debug, Queryable, Selectable, Insertable)]
+#[diesel(table_name = proposal_persistent_grant, check_for_backend(Sqlite))]
+struct BaseRow {
+    proposal_id: ProposalId,
+    wallet_access_id: i32,
+    chain_id: i64,
+    valid_from: Option<i64>,
+    valid_until: Option<i64>,
+    max_gas_fee_per_gas: Option<Vec<u8>>,
+    max_priority_fee_per_gas: Option<Vec<u8>>,
+    rate_limit_count: Option<i32>,
+    rate_limit_window_secs: Option<i64>,
+}
+
+#[derive(Debug, Queryable, Selectable, Insertable)]
+#[diesel(table_name = proposal_persistent_grant_ether, check_for_backend(Sqlite))]
+struct EtherRow {
+    proposal_id: ProposalId,
+    window_secs: i64,
+    max_volume: Vec<u8>,
+}
+
+#[derive(Debug, Insertable)]
+#[diesel(table_name = proposal_persistent_grant_ether_target, check_for_backend(Sqlite))]
+struct NewEtherTarget {
+    proposal_id: ProposalId,
+    address: Vec<u8>,
+}
+
+#[derive(Debug, Queryable, Selectable, Insertable)]
+#[diesel(table_name = proposal_persistent_grant_token, check_for_backend(Sqlite))]
+struct TokenRow {
+    proposal_id: ProposalId,
+    token_contract: Vec<u8>,
+    receiver: Option<Vec<u8>>,
+}
+
+#[derive(Debug, Insertable)]
+#[diesel(table_name = proposal_persistent_grant_token_limit, check_for_backend(Sqlite))]
+struct NewTokenLimit {
+    proposal_id: ProposalId,
+    window_secs: i64,
+    max_volume: Vec<u8>,
+}
+
+impl BaseRow {
+    fn new(proposal_id: ProposalId, settings: &Settings) -> QueryResult<Self> {
+        Ok(Self {
+            proposal_id,
+            wallet_access_id: settings.wallet_access_id,
+            chain_id: as_i64(settings.chain_id)?,
+            valid_from: settings.valid_from_secs,
+            valid_until: settings.valid_until_secs,
+            max_gas_fee_per_gas: settings.max_gas_fee_per_gas.map(|v| v.to_vec()),
+            max_priority_fee_per_gas: settings.max_priority_fee_per_gas.map(|v| v.to_vec()),
+            // SQLite stores integers signed; a rate-limit count is a `u32`, so it
+            // round-trips through the bit pattern rather than a fallible range check.
+            rate_limit_count: settings.rate_limit.map(|r| r.count.cast_signed()),
+            rate_limit_window_secs: settings.rate_limit.map(|r| r.window_secs),
+        })
+    }
+
+    fn into_settings(self, specific: Specific) -> QueryResult<Settings> {
+        Ok(Settings {
+            wallet_access_id: self.wallet_access_id,
+            chain_id: as_u64(self.chain_id)?,
+            valid_from_secs: self.valid_from,
+            valid_until_secs: self.valid_until,
+            max_gas_fee_per_gas: fixed!(opt self.max_gas_fee_per_gas)?,
+            max_priority_fee_per_gas: fixed!(opt self.max_priority_fee_per_gas)?,
+            rate_limit: self.rate_limit_count.zip(self.rate_limit_window_secs).map(
+                |(count, window_secs)| RateLimit {
+                    count: count.cast_unsigned(),
+                    window_secs,
+                },
+            ),
+            specific,
+        })
+    }
+}
+
+pub struct PersistentGrant;
+
+impl Proposal for PersistentGrant {
+    const KIND: ProposalKindTag = ProposalKindTag::ApprovePersistentGrant;
+
+    type Settings = Settings;
+
+    async fn insert(
+        proposal_id: ProposalId,
+        settings: &Self::Settings,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<()> {
+        diesel::insert_into(proposal_persistent_grant::table)
+            .values(&BaseRow::new(proposal_id, settings)?)
+            .execute(conn)
+            .await?;
+
+        match &settings.specific {
+            Specific::EtherTransfer { targets, limit } => {
+                diesel::insert_into(proposal_persistent_grant_ether::table)
+                    .values(&EtherRow {
+                        proposal_id,
+                        window_secs: limit.window_secs,
+                        max_volume: limit.max_volume.to_vec(),
+                    })
+                    .execute(conn)
+                    .await?;
+
+                // Row at a time: SQLite has no multi-row VALUES clause in diesel-async.
+                for address in targets {
+                    diesel::insert_into(proposal_persistent_grant_ether_target::table)
+                        .values(&NewEtherTarget {
+                            proposal_id,
+                            address: address.to_vec(),
+                        })
+                        .execute(conn)
+                        .await?;
+                }
+            }
+            Specific::TokenTransfer {
+                token_contract,
+                receiver,
+                volume_limits,
+            } => {
+                diesel::insert_into(proposal_persistent_grant_token::table)
+                    .values(&TokenRow {
+                        proposal_id,
+                        token_contract: token_contract.to_vec(),
+                        receiver: receiver.map(|r| r.to_vec()),
+                    })
+                    .execute(conn)
+                    .await?;
+
+                for limit in volume_limits {
+                    diesel::insert_into(proposal_persistent_grant_token_limit::table)
+                        .values(&NewTokenLimit {
+                            proposal_id,
+                            window_secs: limit.window_secs,
+                            max_volume: limit.max_volume.to_vec(),
+                        })
+                        .execute(conn)
+                        .await?;
+                }
+            }
+        }
+        Ok(())
+    }
+
+    async fn load(
+        proposal_id: ProposalId,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<Self::Settings> {
+        let base: BaseRow = proposal_persistent_grant::table
+            .find(proposal_id)
+            .select(BaseRow::as_select())
+            .first(conn)
+            .await?;
+
+        let ether: Option<EtherRow> = proposal_persistent_grant_ether::table
+            .find(proposal_id)
+            .select(EtherRow::as_select())
+            .first(conn)
+            .await
+            .optional()?;
+
+        let specific = if let Some(ether) = ether {
+            let addresses: Vec<Vec<u8>> = proposal_persistent_grant_ether_target::table
+                .filter(proposal_persistent_grant_ether_target::proposal_id.eq(proposal_id))
+                .select(proposal_persistent_grant_ether_target::address)
+                .load(conn)
+                .await?;
+            let targets = addresses
+                .iter()
+                .map(|address| fixed!(address))
+                .collect::<QueryResult<Vec<_>>>()?;
+            Specific::EtherTransfer {
+                targets,
+                limit: VolumeLimit {
+                    max_volume: fixed!(ether.max_volume)?,
+                    window_secs: ether.window_secs,
+                },
+            }
+        } else {
+            let token: TokenRow = proposal_persistent_grant_token::table
+                .find(proposal_id)
+                .select(TokenRow::as_select())
+                .first(conn)
+                .await?;
+            let rows: Vec<(i64, Vec<u8>)> = proposal_persistent_grant_token_limit::table
+                .filter(proposal_persistent_grant_token_limit::proposal_id.eq(proposal_id))
+                .select((
+                    proposal_persistent_grant_token_limit::window_secs,
+                    proposal_persistent_grant_token_limit::max_volume,
+                ))
+                .load(conn)
+                .await?;
+            let volume_limits = rows
+                .into_iter()
+                .map(|(window_secs, max_volume)| {
+                    Ok(VolumeLimit {
+                        max_volume: fixed!(max_volume)?,
+                        window_secs,
+                    })
+                })
+                .collect::<QueryResult<Vec<_>>>()?;
+            Specific::TokenTransfer {
+                token_contract: fixed!(token.token_contract)?,
+                receiver: fixed!(opt token.receiver)?,
+                volume_limits,
+            }
+        };
+
+        base.into_settings(specific)
+    }
+}

server/crates/arbiter-server/src/db/proposal/replace_operator.rs

@@ -0,0 +1,51 @@
+//! Replacing an operator's key, which also triggers a Shamir re-key (§3.3).
+
+use super::{Proposal, ProposalKindTag};
+use crate::db::{
+    DatabaseConnection,
+    models::{OperatorIdentityId, ProposalId},
+    schema::proposal_replace_operator as table,
+};
+use diesel::{
+    ExpressionMethods as _, Insertable, QueryDsl as _, QueryResult, Queryable, Selectable,
+    SelectableHelper as _, sqlite::Sqlite,
+};
+use diesel_async::RunQueryDsl as _;
+
+#[derive(Debug, Clone, PartialEq, Eq, Queryable, Selectable, Insertable)]
+#[diesel(table_name = table, check_for_backend(Sqlite))]
+pub struct Settings {
+    pub old_operator_id: OperatorIdentityId,
+    pub new_pubkey: Vec<u8>,
+}
+
+pub struct ReplaceOperator;
+
+impl Proposal for ReplaceOperator {
+    const KIND: ProposalKindTag = ProposalKindTag::ReplaceOperator;
+
+    type Settings = Settings;
+
+    async fn insert(
+        proposal_id: ProposalId,
+        settings: &Self::Settings,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<()> {
+        diesel::insert_into(table::table)
+            .values((table::proposal_id.eq(proposal_id), settings))
+            .execute(conn)
+            .await
+            .map(drop)
+    }
+
+    async fn load(
+        proposal_id: ProposalId,
+        conn: &mut DatabaseConnection,
+    ) -> QueryResult<Self::Settings> {
+        table::table
+            .find(proposal_id)
+            .select(Settings::as_select())
+            .first(conn)
+            .await
+    }
+}

server/crates/arbiter-server/src/db/proposal/trigger_rekey.rs

@@ -0,0 +1,28 @@
+//! A Shamir re-key over the current operator set (§3.3).
+
+use super::{Proposal, ProposalKindTag};
+use crate::db::{DatabaseConnection, models::ProposalId};
+use diesel::QueryResult;
+
+pub struct TriggerRekey;
+
+impl Proposal for TriggerRekey {
+    const KIND: ProposalKindTag = ProposalKindTag::TriggerRekey;
+
+    type Settings = ();
+
+    async fn insert(
+        _proposal_id: ProposalId,
+        _settings: &Self::Settings,
+        _conn: &mut DatabaseConnection,
+    ) -> QueryResult<()> {
+        Ok(())
+    }
+
+    async fn load(
+        _proposal_id: ProposalId,
+        _conn: &mut DatabaseConnection,
+    ) -> QueryResult<Self::Settings> {
+        Ok(())
+    }
+}

server/crates/arbiter-server/src/db/schema.rs

@@ -157,6 +157,7 @@ diesel::table! {
         id -> Nullable<Integer>,
         share -> Binary,
         share_nonce -> Binary,
+        share_salt -> Binary,
         created_at -> Integer,
         updated_at -> Integer,
     }
@@ -171,6 +172,165 @@ diesel::table! {
     }
 }
 
+diesel::table! {
+    proposal (id) {
+        id -> Integer,
+        kind -> Text,
+        initiator_id -> Integer,
+        created_at -> Integer,
+        expires_at -> Integer,
+        status -> Text,
+    }
+}
+
+diesel::table! {
+    proposal_approve_sdk_client (proposal_id) {
+        proposal_id -> Integer,
+        client_id -> Integer,
+    }
+}
+
+diesel::table! {
+    proposal_grant_wallet_access (proposal_id) {
+        proposal_id -> Integer,
+        wallet_id -> Integer,
+        client_id -> Integer,
+    }
+}
+
+diesel::table! {
+    proposal_replace_operator (proposal_id) {
+        proposal_id -> Integer,
+        old_operator_id -> Integer,
+        new_pubkey -> Binary,
+    }
+}
+
+diesel::table! {
+    proposal_one_off_transaction (proposal_id) {
+        proposal_id -> Integer,
+        client_id -> Integer,
+        wallet_address -> Binary,
+        chain_id -> BigInt,
+        nonce -> BigInt,
+        gas_limit -> BigInt,
+        max_fee_per_gas -> Binary,
+        max_priority_fee_per_gas -> Binary,
+        to_address -> Binary,
+        value -> Binary,
+        input -> Binary,
+    }
+}
+
+diesel::table! {
+    proposal_persistent_grant (proposal_id) {
+        proposal_id -> Integer,
+        wallet_access_id -> Integer,
+        chain_id -> BigInt,
+        valid_from -> Nullable<BigInt>,
+        valid_until -> Nullable<BigInt>,
+        max_gas_fee_per_gas -> Nullable<Binary>,
+        max_priority_fee_per_gas -> Nullable<Binary>,
+        rate_limit_count -> Nullable<Integer>,
+        rate_limit_window_secs -> Nullable<BigInt>,
+    }
+}
+
+diesel::table! {
+    proposal_persistent_grant_ether (proposal_id) {
+        proposal_id -> Integer,
+        window_secs -> BigInt,
+        max_volume -> Binary,
+    }
+}
+
+diesel::table! {
+    proposal_persistent_grant_ether_target (id) {
+        id -> Integer,
+        proposal_id -> Integer,
+        address -> Binary,
+    }
+}
+
+diesel::table! {
+    proposal_persistent_grant_token (proposal_id) {
+        proposal_id -> Integer,
+        token_contract -> Binary,
+        receiver -> Nullable<Binary>,
+    }
+}
+
+diesel::table! {
+    proposal_persistent_grant_token_limit (id) {
+        id -> Integer,
+        proposal_id -> Integer,
+        window_secs -> BigInt,
+        max_volume -> Binary,
+    }
+}
+
+diesel::table! {
+    proposal_one_off_transaction_result (proposal_id) {
+        proposal_id -> Integer,
+        r -> Binary,
+        s -> Binary,
+        y_parity -> Integer,
+        created_at -> Integer,
+    }
+}
+
+diesel::table! {
+    recovery_operator (id) {
+        id -> Integer,
+        share -> Binary,
+        share_nonce -> Binary,
+        share_salt -> Binary,
+        created_at -> Integer,
+        updated_at -> Integer,
+    }
+}
+
+diesel::table! {
+    recovery_operator_identity (id) {
+        id -> Integer,
+        public_key -> Binary,
+        created_at -> Integer,
+        updated_at -> Integer,
+    }
+}
+
+diesel::table! {
+    recovery_wakeup_request (id) {
+        id -> Integer,
+        requested_by -> Integer,
+        requested_at -> Integer,
+        cancelled_by -> Nullable<Integer>,
+        cancelled_at -> Nullable<Integer>,
+    }
+}
+
+diesel::table! {
+    recovery_proposal_vote (id) {
+        id -> Integer,
+        proposal_id -> Integer,
+        recovery_operator_id -> Integer,
+        approve -> Bool,
+        signature -> Binary,
+        voted_at -> Integer,
+    }
+}
+
+diesel::table! {
+    proposal_vote (id) {
+        id -> Integer,
+        proposal_id -> Integer,
+        operator_id -> Integer,
+        approve -> Bool,
+        signature -> Binary,
+        voted_at -> Integer,
+    }
+}
+
 diesel::table! {
     program_client (id) {
         id -> Integer,
@@ -224,9 +384,38 @@ diesel::joinable!(evm_wallet_access -> evm_wallet (wallet_id));
 diesel::joinable!(evm_wallet_access -> program_client (client_id));
 diesel::joinable!(operator -> operator_identity (id));
 diesel::joinable!(program_client -> client_metadata (metadata_id));
+diesel::joinable!(proposal -> operator_identity (initiator_id));
+diesel::joinable!(proposal_one_off_transaction_result -> proposal_one_off_transaction (proposal_id));
+diesel::joinable!(proposal_approve_sdk_client -> proposal (proposal_id));
+diesel::joinable!(proposal_grant_wallet_access -> proposal (proposal_id));
+diesel::joinable!(proposal_replace_operator -> proposal (proposal_id));
+diesel::joinable!(proposal_one_off_transaction -> proposal (proposal_id));
+diesel::joinable!(proposal_persistent_grant -> proposal (proposal_id));
+diesel::joinable!(proposal_persistent_grant_ether -> proposal_persistent_grant (proposal_id));
+diesel::joinable!(proposal_persistent_grant_token -> proposal_persistent_grant (proposal_id));
+diesel::joinable!(proposal_vote -> proposal (proposal_id));
+diesel::joinable!(proposal_vote -> operator_identity (operator_id));
+diesel::joinable!(recovery_operator -> recovery_operator_identity (id));
+diesel::joinable!(recovery_proposal_vote -> proposal (proposal_id));
+diesel::joinable!(recovery_proposal_vote -> recovery_operator_identity (recovery_operator_id));
+diesel::joinable!(recovery_wakeup_request -> operator_identity (requested_by));
 
 diesel::allow_tables_to_appear_in_same_query!(
     aead_encrypted,
+    proposal_one_off_transaction_result,
+    proposal_approve_sdk_client,
+    proposal_grant_wallet_access,
+    proposal_replace_operator,
+    proposal_one_off_transaction,
+    proposal_persistent_grant,
+    proposal_persistent_grant_ether,
+    proposal_persistent_grant_ether_target,
+    proposal_persistent_grant_token,
+    proposal_persistent_grant_token_limit,
+    recovery_operator,
+    recovery_operator_identity,
+    recovery_wakeup_request,
+    recovery_proposal_vote,
     arbiter_settings,
     client_metadata,
     client_metadata_history,
@@ -244,6 +433,8 @@ diesel::allow_tables_to_appear_in_same_query!(
     operator,
     operator_identity,
     program_client,
+    proposal,
+    proposal_vote,
     root_key_history,
     tls_history,
 );

server/crates/arbiter-server/src/evm/safe_signer.rs

@@ -44,7 +44,7 @@ impl std::fmt::Debug for SafeSigner {
 /// Returns the protected key bytes and the derived Ethereum address.
 pub fn generate(rng: &mut impl rand::Rng) -> (SafeCell<[u8; 32]>, Address) {
     loop {
-        let mut cell = SafeCell::new_inline(|w: &mut [u8; 32]| {
+        let mut cell = SafeCell::new_inline_default(|w: &mut [u8; 32]| {
             rng.fill_bytes(w);
         });
 

server/crates/arbiter-server/src/grpc/operator.rs

@@ -19,6 +19,7 @@ use tracing::{error, info, warn};
 
 mod auth;
 mod evm;
+mod governance;
 mod inbound;
 mod outbound;
 mod sdk_client;
@@ -115,6 +116,7 @@ async fn dispatch_inner(
             warn!("Unsupported post-auth operator auth request");
             Err(Status::invalid_argument("Unsupported operator request"))
         }
+        OperatorRequestPayload::Governance(req) => governance::dispatch(actor, req).await,
     }
 }
 

server/crates/arbiter-server/src/grpc/operator/governance.rs

@@ -0,0 +1,253 @@
+use crate::{
+    actors::proposal_manager::{Error as ProposalError, VoteOutcome},
+    db::models::{OperatorIdentityId, ProposalId},
+    db::proposal::{
+        ProposalKind, approve_sdk_client, grant_wallet_access, one_off_transaction,
+        persistent_grant, replace_operator,
+    },
+    peers::operator::{
+        OperatorSession,
+        session::handlers::{HandleCastVote, HandleCreateProposal, HandleQueryPending},
+    },
+};
+use arbiter_proto::proto::operator::{
+    governance::{
+        self as proto_gov, CreateProposalRequest, QueryPendingRequest, QueryPendingResponse,
+        VoteOutcome as ProtoVoteOutcome, create_proposal_request::Kind as ProtoKind,
+        request::Payload as GovRequestPayload, response::Payload as GovResponsePayload,
+    },
+    operator_response::Payload as OperatorResponsePayload,
+};
+use kameo::actor::ActorRef;
+use tonic::Status;
+use tracing::warn;
+
+const fn wrap(payload: GovResponsePayload) -> OperatorResponsePayload {
+    OperatorResponsePayload::Governance(proto_gov::Response {
+        payload: Some(payload),
+    })
+}
+
+pub(super) async fn dispatch(
+    actor: &ActorRef<OperatorSession>,
+    req: proto_gov::Request,
+) -> Result<Option<OperatorResponsePayload>, Status> {
+    let Some(payload) = req.payload else {
+        return Err(Status::invalid_argument(
+            "Missing governance request payload",
+        ));
+    };
+
+    match payload {
+        GovRequestPayload::Create(req) => handle_create(actor, req).await,
+        GovRequestPayload::Vote(req) => handle_vote(actor, req).await,
+        GovRequestPayload::Query(QueryPendingRequest {}) => handle_query(actor).await,
+    }
+}
+
+async fn handle_create(
+    actor: &ActorRef<OperatorSession>,
+    req: CreateProposalRequest,
+) -> Result<Option<OperatorResponsePayload>, Status> {
+    let kind = match req.kind {
+        Some(ProtoKind::ApproveSdkClient(p)) => {
+            ProposalKind::ApproveSdkClient(approve_sdk_client::Settings {
+                client_id: p.client_id,
+            })
+        }
+        Some(ProtoKind::GrantWalletAccess(p)) => {
+            ProposalKind::GrantWalletAccess(grant_wallet_access::Settings {
+                wallet_id: p.wallet_id,
+                client_id: p.client_id,
+            })
+        }
+        Some(ProtoKind::ReplaceOperator(p)) => {
+            ProposalKind::ReplaceOperator(replace_operator::Settings {
+                old_operator_id: OperatorIdentityId::from_raw(p.old_operator_id),
+                new_pubkey: p.new_pubkey,
+            })
+        }
+        Some(ProtoKind::TriggerRekey(())) => ProposalKind::TriggerRekey,
+        Some(ProtoKind::ApprovePersistentGrant(p)) => {
+            ProposalKind::ApprovePersistentGrant(Box::new(parse_persistent_grant(p)?))
+        }
+        Some(ProtoKind::ApproveOneOffTransaction(p)) => {
+            ProposalKind::ApproveOneOffTransaction(Box::new(parse_one_off_transaction(p)?))
+        }
+        None => return Err(Status::invalid_argument("Missing proposal kind")),
+    };
+    let proposal_id = actor
+        .ask(HandleCreateProposal {
+            kind,
+            ttl_secs: req.ttl_secs,
+        })
+        .await
+        .map_err(|e| {
+            warn!(?e, "create_proposal failed");
+            Status::internal("Failed to create proposal")
+        })?;
+
+    Ok(Some(wrap(GovResponsePayload::Created(
+        proto_gov::CreateProposalResponse {
+            proposal_id: proposal_id.to_raw(),
+        },
+    ))))
+}
+
+/// Validates the grant where the request enters, so a malformed one is refused before
+/// any operator votes on it instead of failing after quorum.
+fn parse_persistent_grant(
+    p: proto_gov::ApprovePersistentGrantPayload,
+) -> Result<persistent_grant::Settings, Status> {
+    use proto_gov::approve_persistent_grant_payload::Specific;
+
+    let volume =
+        |l: proto_gov::VolumeLimitProto| -> Result<persistent_grant::VolumeLimit, Status> {
+            Ok(persistent_grant::VolumeLimit {
+                max_volume: fixed(&l.max_volume, "max_volume must be 32 bytes")?,
+                window_secs: l.window_secs,
+            })
+        };
+
+    let specific = match p.specific {
+        Some(Specific::EtherTransfer(spec)) => {
+            let targets = spec
+                .targets
+                .iter()
+                .map(|target| fixed(target, "ether transfer target must be 20 bytes"))
+                .collect::<Result<Vec<_>, _>>()?;
+            let limit = spec
+                .limit
+                .ok_or_else(|| Status::invalid_argument("missing ether transfer limit"))?;
+            persistent_grant::Specific::EtherTransfer {
+                targets,
+                limit: volume(limit)?,
+            }
+        }
+        Some(Specific::TokenTransfer(spec)) => {
+            let volume_limits = spec
+                .volume_limits
+                .into_iter()
+                .map(volume)
+                .collect::<Result<Vec<_>, _>>()?;
+            persistent_grant::Specific::TokenTransfer {
+                token_contract: fixed(&spec.token_contract, "token_contract must be 20 bytes")?,
+                receiver: spec
+                    .target
+                    .map(|t| fixed(&t, "token transfer target must be 20 bytes"))
+                    .transpose()?,
+                volume_limits,
+            }
+        }
+        None => return Err(Status::invalid_argument("missing grant specific")),
+    };
+
+    Ok(persistent_grant::Settings {
+        wallet_access_id: p.wallet_access_id,
+        chain_id: p.chain_id,
+        valid_from_secs: p.valid_from_secs,
+        valid_until_secs: p.valid_until_secs,
+        max_gas_fee_per_gas: p
+            .max_gas_fee_per_gas
+            .map(|v| fixed(&v, "max_gas_fee_per_gas must be 32 bytes"))
+            .transpose()?,
+        max_priority_fee_per_gas: p
+            .max_priority_fee_per_gas
+            .map(|v| fixed(&v, "max_priority_fee_per_gas must be 32 bytes"))
+            .transpose()?,
+        rate_limit: p.rate_limit.map(|r| persistent_grant::RateLimit {
+            count: r.count,
+            window_secs: r.window_secs,
+        }),
+        specific,
+    })
+}
+
+fn fixed<const N: usize>(bytes: &[u8], message: &'static str) -> Result<[u8; N], Status> {
+    <[u8; N]>::try_from(bytes).map_err(|_| Status::invalid_argument(message))
+}
+
+/// Validates the transaction where the request enters, so a malformed one is refused
+/// before any operator votes on it instead of failing after quorum.
+fn parse_one_off_transaction(
+    p: proto_gov::ApproveOneOffTransactionPayload,
+) -> Result<one_off_transaction::Settings, Status> {
+    Ok(one_off_transaction::Settings {
+        client_id: p.client_id,
+        wallet_address: fixed(&p.wallet_address, "wallet_address must be 20 bytes")?,
+        chain_id: p.chain_id,
+        nonce: p.nonce,
+        gas_limit: p.gas_limit,
+        max_fee_per_gas: u128::from_be_bytes(fixed(
+            &p.max_fee_per_gas,
+            "max_fee_per_gas must be 16 bytes",
+        )?),
+        max_priority_fee_per_gas: u128::from_be_bytes(fixed(
+            &p.max_priority_fee_per_gas,
+            "max_priority_fee_per_gas must be 16 bytes",
+        )?),
+        to: fixed(&p.to, "to must be 20 bytes")?,
+        value: fixed(&p.value, "value must be 32 bytes")?,
+        input: p.input,
+    })
+}
+
+async fn handle_vote(
+    actor: &ActorRef<OperatorSession>,
+    req: proto_gov::CastVoteRequest,
+) -> Result<Option<OperatorResponsePayload>, Status> {
+    let result = actor
+        .ask(HandleCastVote {
+            proposal_id: ProposalId::from_raw(req.proposal_id),
+            approve: req.approve,
+            signature: req.signature,
+        })
+        .await;
+
+    let outcome = match result {
+        Ok(VoteOutcome::Pending) => ProtoVoteOutcome::Pending,
+        Ok(VoteOutcome::Approved) => ProtoVoteOutcome::Approved,
+        Ok(VoteOutcome::Rejected) => ProtoVoteOutcome::Rejected,
+        Err(kameo::error::SendError::HandlerError(ProposalError::AlreadyVoted)) => {
+            return Err(Status::invalid_argument("Already voted on this proposal"));
+        }
+        Err(kameo::error::SendError::HandlerError(ProposalError::InvalidSignature)) => {
+            return Err(Status::invalid_argument("Invalid vote signature"));
+        }
+        Err(kameo::error::SendError::HandlerError(ProposalError::ProposalNotFound)) => {
+            return Err(Status::not_found("Proposal not found"));
+        }
+        Err(e) => {
+            warn!(?e, "cast_vote failed");
+            return Err(Status::internal("Failed to cast vote"));
+        }
+    };
+
+    Ok(Some(wrap(GovResponsePayload::Voted(
+        proto_gov::VoteResponse {
+            outcome: outcome.into(),
+        },
+    ))))
+}
+
+async fn handle_query(
+    actor: &ActorRef<OperatorSession>,
+) -> Result<Option<OperatorResponsePayload>, Status> {
+    let summaries = actor.ask(HandleQueryPending {}).await.unwrap_or_default();
+
+    let proposals = summaries
+        .into_iter()
+        .map(|s| proto_gov::ProposalSummary {
+            id: s.id.to_raw(),
+            kind: <&'static str>::from(s.kind).to_owned(),
+            initiator_id: s.initiator_id.to_raw(),
+            expires_at: s.expires_at.0.timestamp(),
+            approve_count: s.approve_count,
+            reject_count: s.reject_count,
+        })
+        .collect();
+
+    Ok(Some(wrap(GovResponsePayload::Pending(
+        QueryPendingResponse { proposals },
+    ))))
+}

server/crates/arbiter-server/src/grpc/operator/vault.rs

@@ -1,16 +1,24 @@
 use crate::{
     actors::vault::VaultState,
-    peers::operator::{OperatorSession, session::handlers::HandleQueryVaultState},
+    peers::operator::{
+        OperatorSession,
+        session::handlers::{
+            HandleContributeRecoveryRekeyPassphrase, HandleContributeRekeyPassphrase,
+            HandleQueryVaultState,
+        },
+    },
 };
 use arbiter_proto::{
-    proto::shared::VaultState as ProtoVaultState,
     proto::operator::{
         operator_response::Payload as OperatorResponsePayload,
         vault::{
-            self as proto_vault, request::Payload as VaultRequestPayload,
+            self as proto_vault,
+            rekey::{self as proto_rekey, RekeyResult as ProtoRekeyResult},
+            request::Payload as VaultRequestPayload,
             response::Payload as VaultResponsePayload,
         },
     },
+    proto::shared::VaultState as ProtoVaultState,
 };
 
 use kameo::actor::ActorRef;
@@ -33,6 +41,7 @@ pub(super) async fn dispatch(
 
     match payload {
         VaultRequestPayload::QueryState(()) => handle_query_vault_state(actor).await,
+        VaultRequestPayload::Rekey(req) => handle_rekey(actor, req).await,
         VaultRequestPayload::Unseal(_) | VaultRequestPayload::Bootstrap(_) => {
             Err(Status::permission_denied(
                 "Vault is already unsealed; unseal/bootstrap not permitted in session",
@@ -41,6 +50,51 @@ pub(super) async fn dispatch(
     }
 }
 
+async fn handle_rekey(
+    actor: &ActorRef<OperatorSession>,
+    req: proto_rekey::Request,
+) -> Result<Option<OperatorResponsePayload>, Status> {
+    use arbiter_proto::proto::operator::vault::rekey::request::Payload as RekeyPayload;
+
+    let payload = req
+        .payload
+        .ok_or_else(|| Status::invalid_argument("Missing rekey payload"))?;
+
+    let done: bool = match payload {
+        RekeyPayload::ContributePassphrase(cp) => actor
+            .ask(HandleContributeRekeyPassphrase {
+                passphrase: cp.passphrase,
+            })
+            .await
+            .map_err(|e| {
+                warn!(?e, "rekey passphrase contribution failed");
+                Status::internal("Rekey contribution failed")
+            })?,
+        RekeyPayload::ContributeRecoveryPassphrase(crp) => actor
+            .ask(HandleContributeRecoveryRekeyPassphrase {
+                recovery_operator_id: crp.recovery_operator_id,
+                passphrase: crp.passphrase,
+            })
+            .await
+            .map_err(|e| {
+                warn!(?e, "rekey recovery passphrase contribution failed");
+                Status::internal("Rekey recovery contribution failed")
+            })?,
+    };
+
+    let proto_result = if done {
+        ProtoRekeyResult::Success
+    } else {
+        ProtoRekeyResult::AwaitingContributions
+    };
+
+    Ok(Some(wrap_vault_response(VaultResponsePayload::Rekey(
+        proto_rekey::Response {
+            result: proto_result.into(),
+        },
+    ))))
+}
+
 async fn handle_query_vault_state(
     actor: &ActorRef<OperatorSession>,
 ) -> Result<Option<OperatorResponsePayload>, Status> {

server/crates/arbiter-server/src/grpc/operator/vault_gate/inbound.rs

@@ -1,14 +1,17 @@
 use crate::{
     grpc::{Convert, TryConvert},
     peers::operator::vault_gate::{
-        self as vault_gate, HandleBootstrapEncryptedKey, HandleHandshake, HandleUnsealEncryptedKey,
+        self as vault_gate, HandleBootstrapEncryptedKey, HandleContributeBootstrapPassphrase,
+        HandleContributeRecoveryBootstrapPassphrase, HandleContributeRecoveryUnsealPassphrase,
+        HandleContributeUnsealPassphrase, HandleDeclareCommittee, HandleHandshake,
+        HandleUnsealEncryptedKey,
     },
 };
 use arbiter_proto::proto::operator::{
     operator_request::Payload as OperatorRequestPayload,
     vault::{
         self as proto_vault,
-        bootstrap::{self as proto_bootstrap},
+        bootstrap::{self as proto_bootstrap, request::Payload as BootstrapRequestPayload},
         request::Payload as VaultRequestPayload,
         unseal::{self as proto_unseal, request::Payload as UnsealRequestPayload},
     },
@@ -50,6 +53,9 @@ impl TryConvert for VaultRequestPayload {
             Self::QueryState(()) => Ok(vault_gate::Inbound::HandleVaultState),
             Self::Unseal(req) => req.try_convert(),
             Self::Bootstrap(req) => req.try_convert(),
+            Self::Rekey(_) => Err(Status::permission_denied(
+                "Rekey requires an authenticated session",
+            )),
         }
     }
 }
@@ -73,6 +79,21 @@ impl TryConvert for UnsealRequestPayload {
         match self {
             Self::Start(start) => start.try_convert(),
             Self::EncryptedKey(key) => Ok(key.convert()),
+            Self::ContributePassphrase(cp) => Ok(
+                vault_gate::Inbound::HandleContributeUnsealPassphrase(
+                    HandleContributeUnsealPassphrase {
+                        passphrase: cp.passphrase,
+                    },
+                ),
+            ),
+            Self::ContributeRecoveryPassphrase(crp) => Ok(
+                vault_gate::Inbound::HandleContributeRecoveryUnsealPassphrase(
+                    HandleContributeRecoveryUnsealPassphrase {
+                        recovery_operator_id: crp.recovery_operator_id,
+                        passphrase: crp.passphrase,
+                    },
+                ),
+            ),
         }
     }
 }
@@ -107,12 +128,44 @@ impl TryConvert for proto_bootstrap::Request {
     type Error = Status;
 
     fn try_convert(self) -> Result<vault_gate::Inbound, Status> {
-        self.encrypted_key
+        self.payload
-            .ok_or_else(|| Status::invalid_argument("Missing bootstrap encrypted key"))?
+            .ok_or_else(|| Status::invalid_argument("Missing bootstrap payload"))?
             .try_convert()
     }
 }
 
+impl TryConvert for BootstrapRequestPayload {
+    type Output = vault_gate::Inbound;
+    type Error = Status;
+
+    fn try_convert(self) -> Result<vault_gate::Inbound, Status> {
+        match self {
+            Self::EncryptedKey(key) => key.try_convert(),
+            Self::DeclareCommittee(dc) => Ok(
+                vault_gate::Inbound::HandleDeclareCommittee(HandleDeclareCommittee {
+                    count: dc.count as usize,
+                    recovery_count: dc.recovery_count as usize,
+                }),
+            ),
+            Self::ContributePassphrase(cp) => Ok(
+                vault_gate::Inbound::HandleContributeBootstrapPassphrase(
+                    HandleContributeBootstrapPassphrase {
+                        passphrase: cp.passphrase,
+                    },
+                ),
+            ),
+            Self::ContributeRecoveryPassphrase(crp) => Ok(
+                vault_gate::Inbound::HandleContributeRecoveryBootstrapPassphrase(
+                    HandleContributeRecoveryBootstrapPassphrase {
+                        recovery_operator_id: crp.recovery_operator_id,
+                        passphrase: crp.passphrase,
+                    },
+                ),
+            ),
+        }
+    }
+}
+
 impl TryConvert for proto_bootstrap::BootstrapEncryptedKey {
     type Output = vault_gate::Inbound;
     type Error = Status;

server/crates/arbiter-server/src/grpc/operator/vault_gate/outbound.rs

@@ -4,7 +4,6 @@ use crate::{
     peers::operator::vault_gate::{self as vault_gate},
 };
 use arbiter_proto::proto::{
-    shared::VaultState as ProtoVaultState,
     operator::{
         operator_response::Payload as OperatorResponsePayload,
         vault::{
@@ -17,6 +16,7 @@ use arbiter_proto::proto::{
             },
         },
     },
+    shared::VaultState as ProtoVaultState,
 };
 
 use tonic::Status;
@@ -110,6 +110,68 @@ impl TryConvert for vault_gate::Outbound {
                 };
                 Ok(wrap_bootstrap_response(proto_result))
             }
+            Self::HandleDeclareCommittee(result) => {
+                let proto_result = match result {
+                    Ok(()) => ProtoBootstrapResult::Success,
+                    Err(err) => {
+                        warn!(?err, "declare committee failed");
+                        return Err(Status::internal("Failed to declare committee"));
+                    }
+                };
+                Ok(wrap_bootstrap_response(proto_result))
+            }
+            Self::HandleContributeBootstrapPassphrase(result) => {
+                let proto_result = match result {
+                    Ok(true) => ProtoBootstrapResult::Success,
+                    Ok(false) => ProtoBootstrapResult::AwaitingContributions,
+                    Err(err) => {
+                        warn!(?err, "contribute bootstrap passphrase failed");
+                        return Err(Status::internal("Failed to contribute bootstrap passphrase"));
+                    }
+                };
+                Ok(wrap_bootstrap_response(proto_result))
+            }
+            Self::HandleContributeRecoveryBootstrapPassphrase(result) => {
+                let proto_result = match result {
+                    Ok(true) => ProtoBootstrapResult::Success,
+                    Ok(false) => ProtoBootstrapResult::AwaitingContributions,
+                    Err(err) => {
+                        warn!(?err, "contribute recovery bootstrap passphrase failed");
+                        return Err(Status::internal(
+                            "Failed to contribute recovery bootstrap passphrase",
+                        ));
+                    }
+                };
+                Ok(wrap_bootstrap_response(proto_result))
+            }
+            Self::HandleContributeUnsealPassphrase(result) => {
+                let proto_result = match result {
+                    Ok(true) => ProtoUnsealResult::Success,
+                    Ok(false) => ProtoUnsealResult::AwaitingContributions,
+                    Err(err) => {
+                        warn!(?err, "contribute unseal passphrase failed");
+                        return Err(Status::internal("Failed to contribute unseal passphrase"));
+                    }
+                };
+                Ok(wrap_unseal_response(UnsealResponsePayload::Result(
+                    proto_result.into(),
+                )))
+            }
+            Self::HandleContributeRecoveryUnsealPassphrase(result) => {
+                let proto_result = match result {
+                    Ok(true) => ProtoUnsealResult::Success,
+                    Ok(false) => ProtoUnsealResult::AwaitingContributions,
+                    Err(err) => {
+                        warn!(?err, "contribute recovery unseal passphrase failed");
+                        return Err(Status::internal(
+                            "Failed to contribute recovery unseal passphrase",
+                        ));
+                    }
+                };
+                Ok(wrap_unseal_response(UnsealResponsePayload::Result(
+                    proto_result.into(),
+                )))
+            }
         }
     }
 }

server/crates/arbiter-server/src/peers/client/auth.rs

@@ -12,7 +12,7 @@ use crate::{
         schema::program_client,
     },
 };
-use arbiter_crypto::authn::{self, AuthChallenge, CLIENT_CONTEXT};
+use arbiter_crypto::authn::{self, AuthChallenge, SigningContext};
 use arbiter_proto::{
     ClientMetadata,
     transport::{Bi, expect_message},
@@ -298,7 +298,7 @@ where
 
     let signature = expect_message(transport, |req: Inbound| match req {
         Inbound::AuthChallengeSolution { signature } => Some(signature),
-        _ => None,
+        Inbound::AuthChallengeRequest { .. } => None,
     })
     .await
     .map_err(|e| {
@@ -306,7 +306,7 @@ where
         Error::Transport
     })?;
 
-    if !pubkey.verify(&challenge, CLIENT_CONTEXT, &signature) {
+    if !pubkey.verify(&challenge, SigningContext::Client, &signature) {
         error!("Challenge solution verification failed");
         return Err(Error::InvalidChallengeSolution);
     }

server/crates/arbiter-server/src/peers/operator/auth/state.rs

@@ -7,26 +7,26 @@ use crate::{
     db::{DatabasePool, schema::operator_identity},
     peers::operator::auth::Outbound,
 };
-use arbiter_crypto::authn::{self, AuthChallenge, OPERATOR_CONTEXT};
+use arbiter_crypto::authn::{self, AuthChallenge, SigningContext};
 use arbiter_proto::transport::Bi;
 
 use diesel::{ExpressionMethods as _, OptionalExtension as _, QueryDsl};
 use diesel_async::RunQueryDsl;
 use tracing::error;
 
-pub(super) struct ChallengeRequest {
+pub(crate) struct ChallengeRequest {
-    pub(super) pubkey: authn::PublicKey,
+    pub(crate) pubkey: authn::PublicKey,
-    pub(super) bootstrap_token: Option<String>,
+    pub(crate) bootstrap_token: Option<String>,
 }
 
-pub(super) struct ChallengeContext {
+pub struct ChallengeContext {
-    pub(super) challenge: AuthChallenge,
+    pub challenge: AuthChallenge,
-    pub(super) pubkey: authn::PublicKey,
+    pub pubkey: authn::PublicKey,
-    pub(super) bootstrap_token: Option<String>,
+    pub bootstrap_token: Option<String>,
 }
 
-pub(super) struct ChallengeSolution {
+pub(crate) struct ChallengeSolution {
-    pub(super) solution: Vec<u8>,
+    pub(crate) solution: Vec<u8>,
 }
 
 smlang::statemachine!(
@@ -127,8 +127,6 @@ where
         })
     }
 
-    #[allow(missing_docs)]
-    #[allow(clippy::unused_unit)]
     async fn verify_solution(
         &mut self,
         ChallengeContext {
@@ -143,7 +141,7 @@ where
             Error::InvalidChallengeSolution
         })?;
 
-        let valid = pubkey.verify(challenge, OPERATOR_CONTEXT, &signature);
+        let valid = pubkey.verify(challenge, SigningContext::Operator, &signature);
 
         if !valid {
             self.transport

server/crates/arbiter-server/src/peers/operator/mod.rs

@@ -180,6 +180,7 @@ where
 
     Ok(OperatorSession::spawn(OperatorSession::new(
         props.clone(),
+        creds.clone(),
         oob_sender,
     )))
 }

server/crates/arbiter-server/src/peers/operator/session/handlers.rs

@@ -1,9 +1,10 @@
 use super::{Error, OperatorSession};
+use crate::db::models::{OperatorIdentityId, ProposalId};
 use crate::{
     actors::{
         evm::{
-            ClientSignTransaction, Generate, ListWallets, OperatorCreateGrant, OperatorListGrants,
+            ClientSignTransaction, Generate, ListWallets, OperatorCreateGrant, OperatorDeleteGrant,
-            SignTransactionError as EvmSignError,
+            OperatorListGrants, SignTransactionError as EvmSignError,
         },
         flow_coordinator::client_connect_approval::ClientApprovalAnswer,
         vault::VaultState,
@@ -122,22 +123,23 @@ impl OperatorSession {
     }
 
     #[message]
-    pub(crate) fn handle_grant_delete(&mut self, grant_id: i32) -> Result<(), GrantMutationError> {
+    pub(crate) async fn handle_grant_delete(
-        // match self
+        &mut self,
-        //     .props
+        grant_id: i32,
-        //     .actors
+    ) -> Result<(), GrantMutationError> {
-        //     .evm
+        match self
-        //     .ask(OperatorDeleteGrant { grant_id })
+            .props
-        //     .await
+            .actors
-        // {
+            .evm
-        //     Ok(()) => Ok(()),
+            .ask(OperatorDeleteGrant { grant_id })
-        //     Err(err) => {
+            .await
-        //         error!(?err, "EVM grant delete failed");
+        {
-        //         Err(GrantMutationError::Internal)
+            Ok(()) => Ok(()),
-        //     }
+            Err(err) => {
-        // }
+                error!(?err, "EVM grant delete failed");
-        let _ = grant_id;
+                Err(GrantMutationError::Internal)
-        todo!()
+            }
+        }
     }
 
     #[message]
@@ -217,8 +219,8 @@ impl OperatorSession {
     pub(crate) async fn handle_list_wallet_access(
         &mut self,
     ) -> Result<Vec<EvmWalletAccess>, Error> {
-        let mut conn = self.props.db.get().await?;
         use crate::db::schema::evm_wallet_access;
+        let mut conn = self.props.db.get().await?;
         let access_entries = evm_wallet_access::table
             .select(EvmWalletAccess::as_select())
             .load::<_>(&mut conn)
@@ -278,3 +280,102 @@ impl OperatorSession {
         Ok(clients)
     }
 }
+
+#[messages]
+impl OperatorSession {
+    #[message]
+    pub(crate) async fn handle_create_proposal(
+        &mut self,
+        kind: crate::db::proposal::ProposalKind,
+        ttl_secs: Option<u32>,
+    ) -> Result<ProposalId, Error> {
+        use crate::actors::proposal_manager::CreateProposal;
+        let initiator_id = OperatorIdentityId::from_raw(self.credentials.id);
+        self.props
+            .actors
+            .proposal_manager
+            .ask(CreateProposal { kind, initiator_id, ttl_secs })
+            .await
+            .map_err(|e| {
+                error!(?e, "create_proposal failed");
+                Error::internal("Failed to create proposal")
+            })
+    }
+
+    #[message]
+    pub(crate) async fn handle_cast_vote(
+        &mut self,
+        proposal_id: ProposalId,
+        approve: bool,
+        signature: Vec<u8>,
+    ) -> Result<crate::actors::proposal_manager::VoteOutcome, crate::actors::proposal_manager::Error> {
+        use crate::actors::proposal_manager::CastVote;
+        let operator_id = OperatorIdentityId::from_raw(self.credentials.id);
+        self.props
+            .actors
+            .proposal_manager
+            .ask(CastVote { proposal_id, operator_id, approve, signature })
+            .await
+            .map_err(|err| match err {
+                SendError::HandlerError(e) => e,
+                _ => crate::actors::proposal_manager::Error::ExecutionFailed("actor unavailable".to_owned()),
+            })
+    }
+
+    #[message]
+    pub(crate) async fn handle_query_pending(
+        &mut self,
+    ) -> Vec<crate::actors::proposal_manager::ProposalSummary> {
+        use crate::actors::proposal_manager::QueryPending;
+        let operator_id = OperatorIdentityId::from_raw(self.credentials.id);
+        self.props
+            .actors
+            .proposal_manager
+            .ask(QueryPending { operator_id })
+            .await
+            .unwrap_or_default()
+    }
+}
+
+#[messages]
+impl OperatorSession {
+    #[message]
+    pub(crate) async fn handle_contribute_rekey_passphrase(
+        &mut self,
+        passphrase: Vec<u8>,
+    ) -> Result<bool, Error> {
+        use crate::actors::vault_coordinator::ContributeRekey;
+        use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
+
+        let operator_id = self.credentials.id;
+        self.props
+            .actors
+            .vault_coordinator
+            .ask(ContributeRekey {
+                operator_id,
+                passphrase: SafeCell::new(passphrase),
+            })
+            .await
+            .map_err(|_| Error::internal("VaultCoordinator unavailable"))
+    }
+
+    #[message]
+    pub(crate) async fn handle_contribute_recovery_rekey_passphrase(
+        &mut self,
+        recovery_operator_id: i32,
+        passphrase: Vec<u8>,
+    ) -> Result<bool, Error> {
+        use crate::actors::vault_coordinator::ContributeRecoveryRekey;
+        use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
+
+        self.props
+            .actors
+            .vault_coordinator
+            .ask(ContributeRecoveryRekey {
+                recovery_operator_id,
+                passphrase: SafeCell::new(passphrase),
+            })
+            .await
+            .map_err(|_| Error::internal("VaultCoordinator unavailable"))
+    }
+}

server/crates/arbiter-server/src/peers/operator/session/mod.rs

@@ -1,4 +1,4 @@
-use super::{OutOfBand, OperatorConnection};
+use super::{Credentials, OutOfBand, OperatorConnection};
 use crate::{
     actors::{
         flow_coordinator::client_connect_approval::ClientApprovalController,
@@ -51,6 +51,7 @@ pub struct PendingClientApproval {
 
 pub struct OperatorSession {
     props: OperatorConnection,
+    credentials: Credentials,
     sender: Box<dyn Sender<OutOfBand>>,
 
     pending_client_approvals: HashMap<Vec<u8>, PendingClientApproval>,
@@ -59,11 +60,12 @@ pub struct OperatorSession {
 pub mod handlers;
 
 impl OperatorSession {
-    pub(crate) fn new(props: OperatorConnection, sender: Box<dyn Sender<OutOfBand>>) -> Self {
+    pub(crate) fn new(props: OperatorConnection, credentials: Credentials, sender: Box<dyn Sender<OutOfBand>>) -> Self {
         Self {
             props,
+            credentials,
             sender,
-            pending_client_approvals: Default::default(),
+            pending_client_approvals: HashMap::default(),
         }
     }
 }

server/crates/arbiter-server/src/peers/operator/vault_gate/mod.rs

@@ -3,8 +3,12 @@ use crate::{
     actors::{
         GlobalActors,
         vault::{self, Bootstrap, GetState, TryUnseal, VaultState, events},
+        vault_coordinator::{
+            ContributeBootstrap, ContributeRecoveryBootstrap, ContributeRecoveryUnseal,
+            ContributeUnseal, StartBootstrap,
+        },
     },
-    crypto::integrity::{self},
+    crypto::{KeyCell, integrity::{self}},
     db::DatabasePool,
 };
 use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
@@ -17,6 +21,9 @@ use tokio::sync::oneshot;
 use tracing::{error, info};
 use x25519_dalek::{EphemeralSecret, PublicKey, SharedSecret};
 
+pub use VaultGateMessage as Inbound;
+pub use VaultGateMessageReply as Outbound;
+
 pub mod state;
 
 #[derive(Debug, thiserror::Error)]
@@ -98,11 +105,9 @@ impl VaultGate {
         nonce: &[u8],
         ciphertext: &[u8],
         associated_data: &[u8],
-    ) -> Result<SafeCell<Vec<u8>>, ()> {
+    ) -> Result<KeyCell, ()> {
         let nonce = XNonce::from_slice(nonce);
-
         let cipher = XChaCha20Poly1305::new(secret.as_bytes().into());
-
         let mut key_buffer = SafeCell::new(ciphertext.to_vec());
 
         let decryption_result = key_buffer.write_inline(|write_handle| {
@@ -110,7 +115,9 @@ impl VaultGate {
         });
 
         match decryption_result {
-            Ok(()) => Ok(key_buffer),
+            Ok(()) => KeyCell::try_from(key_buffer).map_err(|()| {
+                error!("Decrypted key material has unexpected length");
+            }),
             Err(err) => {
                 error!(?err, "Failed to decrypt encrypted key material");
                 Err(())
@@ -119,7 +126,7 @@ impl VaultGate {
     }
 }
 
-#[messages(messages = Inbound, replies = Outbound)]
+#[messages(enum)]
 impl VaultGate {
     #[message]
     pub fn handle_handshake(
@@ -152,17 +159,14 @@ impl VaultGate {
             return Err(Error::State);
         };
 
-        let Ok(seal_key_buffer) = Self::decrypt_key(secret, &nonce, &ciphertext, &associated_data)
+        let Ok(seal_key) = Self::decrypt_key(secret, &nonce, &ciphertext, &associated_data) else {
-        else {
             return Err(Error::InvalidKey);
         };
 
         match self
             .actors
             .vault
-            .ask(TryUnseal {
+            .ask(TryUnseal { seal_key })
-                seal_key_raw: seal_key_buffer,
-            })
             .await
         {
             Ok(()) => {
@@ -192,17 +196,14 @@ impl VaultGate {
             return Err(Error::State);
         };
 
-        let Ok(seal_key_buffer) = Self::decrypt_key(secret, &nonce, &ciphertext, &associated_data)
+        let Ok(seal_key) = Self::decrypt_key(secret, &nonce, &ciphertext, &associated_data) else {
-        else {
             return Err(Error::InvalidKey);
         };
 
         match self
             .actors
             .vault
-            .ask(Bootstrap {
+            .ask(Bootstrap { seal_key })
-                seal_key_raw: seal_key_buffer,
-            })
             .await
         {
             Ok(()) => {
@@ -234,6 +235,89 @@ impl VaultGate {
 
         Ok(answer)
     }
+
+    #[message]
+    pub async fn handle_declare_committee(
+        &mut self,
+        count: usize,
+        recovery_count: usize,
+    ) -> Result<(), Error> {
+        self.actors
+            .vault_coordinator
+            .ask(StartBootstrap {
+                operator_id: self.auth_creds.id,
+                declared_count: count,
+                recovery_count,
+            })
+            .await
+            .map_err(|_| Error::internal("VaultCoordinator unavailable"))
+    }
+
+    #[message]
+    pub async fn handle_contribute_bootstrap_passphrase(
+        &mut self,
+        passphrase: Vec<u8>,
+    ) -> Result<bool, Error> {
+        let passphrase_cell = SafeCell::new(passphrase);
+        self.actors
+            .vault_coordinator
+            .ask(ContributeBootstrap {
+                operator_id: self.auth_creds.id,
+                passphrase: passphrase_cell,
+            })
+            .await
+            .map_err(|_| Error::internal("VaultCoordinator unavailable"))
+    }
+
+    #[message]
+    pub async fn handle_contribute_recovery_bootstrap_passphrase(
+        &mut self,
+        recovery_operator_id: i32,
+        passphrase: Vec<u8>,
+    ) -> Result<bool, Error> {
+        let passphrase_cell = SafeCell::new(passphrase);
+        self.actors
+            .vault_coordinator
+            .ask(ContributeRecoveryBootstrap {
+                recovery_operator_id,
+                passphrase: passphrase_cell,
+            })
+            .await
+            .map_err(|_| Error::internal("VaultCoordinator unavailable"))
+    }
+
+    #[message]
+    pub async fn handle_contribute_unseal_passphrase(
+        &mut self,
+        passphrase: Vec<u8>,
+    ) -> Result<bool, Error> {
+        let passphrase_cell = SafeCell::new(passphrase);
+        self.actors
+            .vault_coordinator
+            .ask(ContributeUnseal {
+                operator_id: self.auth_creds.id,
+                passphrase: passphrase_cell,
+            })
+            .await
+            .map_err(|_| Error::internal("VaultCoordinator unavailable"))
+    }
+
+    #[message]
+    pub async fn handle_contribute_recovery_unseal_passphrase(
+        &mut self,
+        recovery_operator_id: i32,
+        passphrase: Vec<u8>,
+    ) -> Result<bool, Error> {
+        let passphrase_cell = SafeCell::new(passphrase);
+        self.actors
+            .vault_coordinator
+            .ask(ContributeRecoveryUnseal {
+                recovery_operator_id,
+                passphrase: passphrase_cell,
+            })
+            .await
+            .map_err(|_| Error::internal("VaultCoordinator unavailable"))
+    }
 }
 
 impl Message<events::Bootstrapped> for VaultGate {

server/crates/arbiter-server/tests/client/auth.rs

@@ -1,8 +1,5 @@
 use super::common::ChannelTransport;
-use arbiter_crypto::{
+use arbiter_crypto::authn::{self, AuthChallenge, SigningContext};
-    authn::{self, AuthChallenge, CLIENT_CONTEXT},
-    safecell::{SafeCell, SafeCellHandle as _},
-};
 use arbiter_proto::{
     ClientMetadata,
     transport::{Receiver, Sender},
@@ -74,7 +71,7 @@ async fn insert_registered_client(
 fn sign_client_challenge(key: &SigningKey<MlDsa87>, challenge: &AuthChallenge) -> authn::Signature {
     let challenge = challenge.format();
     key.signing_key()
-        .sign_deterministic(&challenge, CLIENT_CONTEXT)
+        .sign_deterministic(&challenge, SigningContext::Client.as_bytes())
         .unwrap()
         .into()
 }
@@ -100,7 +97,7 @@ async fn spawn_test_actors(db: &db::DatabasePool) -> GlobalActors {
     actors
         .vault
         .ask(Bootstrap {
-            seal_key_raw: SafeCell::new(b"test-seal-key".to_vec()),
+            seal_key: arbiter_server::crypto::KeyCell::from([0u8; 32]),
         })
         .await
         .unwrap();

server/crates/arbiter-server/tests/common/mod.rs

@@ -2,7 +2,6 @@
     dead_code,
     reason = "Common test utilities that may not be used in every test"
 )]
-use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
 use arbiter_proto::transport::{Bi, Error, Receiver, Sender};
 use arbiter_server::{
     actors::{GlobalActors, vault::Vault},
@@ -19,7 +18,7 @@ pub(crate) async fn bootstrapped_vault(db: &db::DatabasePool) -> Vault {
         .await
         .unwrap();
     actor
-        .bootstrap(SafeCell::new(b"test-seal-key".to_vec()))
+        .bootstrap(arbiter_server::crypto::KeyCell::from([0u8; 32]))
         .await
         .unwrap();
     actor

server/crates/arbiter-server/tests/operator/auth.rs

@@ -1,8 +1,5 @@
 use super::common::ChannelTransport;
-use arbiter_crypto::{
+use arbiter_crypto::authn::{self, AuthChallenge, SigningContext};
-    authn::{self, AuthChallenge, OPERATOR_CONTEXT},
-    safecell::{SafeCell, SafeCellHandle as _},
-};
 use arbiter_proto::transport::{Error as TransportError, Receiver, Sender};
 use arbiter_server::{
     actors::{GlobalActors, bootstrap::GetToken, vault::Bootstrap},
@@ -27,7 +24,7 @@ fn sign_operator_challenge(
 ) -> authn::Signature {
     let challenge = challenge.format();
     key.signing_key()
-        .sign_deterministic(&challenge, OPERATOR_CONTEXT)
+        .sign_deterministic(&challenge, SigningContext::Operator.as_bytes())
         .unwrap()
         .into()
 }
@@ -157,7 +154,7 @@ pub async fn bootstrap_token_auth() {
     actors
         .vault
         .ask(Bootstrap {
-            seal_key_raw: SafeCell::new(b"test-seal-key".to_vec()),
+            seal_key: arbiter_server::crypto::KeyCell::from([0u8; 32]),
         })
         .await
         .unwrap();
@@ -275,7 +272,7 @@ pub async fn challenge_auth() {
     actors
         .vault
         .ask(Bootstrap {
-            seal_key_raw: SafeCell::new(b"test-seal-key".to_vec()),
+            seal_key: arbiter_server::crypto::KeyCell::from([0u8; 32]),
         })
         .await
         .unwrap();
@@ -361,7 +358,7 @@ pub async fn challenge_auth_rejects_integrity_tag_mismatch_when_unsealed() {
     actors
         .vault
         .ask(Bootstrap {
-            seal_key_raw: SafeCell::new(b"test-seal-key".to_vec()),
+            seal_key: arbiter_server::crypto::KeyCell::from([0u8; 32]),
         })
         .await
         .unwrap();
@@ -434,7 +431,7 @@ pub async fn challenge_auth_rejects_invalid_signature() {
     actors
         .vault
         .ask(Bootstrap {
-            seal_key_raw: SafeCell::new(b"test-seal-key".to_vec()),
+            seal_key: arbiter_server::crypto::KeyCell::from([0u8; 32]),
         })
         .await
         .unwrap();

server/crates/arbiter-server/tests/operator/unseal.rs

@@ -1,7 +1,4 @@
-use arbiter_crypto::{
+use arbiter_crypto::authn;
-    authn,
-    safecell::{SafeCell, SafeCellHandle as _},
-};
 use arbiter_server::{
     actors::{
         GlobalActors,
@@ -22,7 +19,7 @@ use tokio::sync::oneshot;
 use x25519_dalek::{EphemeralSecret, PublicKey};
 
 async fn setup_sealed_gate(
-    seal_key: &[u8],
+    seal_key: &[u8; 32],
 ) -> (
     db::DatabasePool,
     kameo::actor::ActorRef<VaultGate>,
@@ -34,7 +31,7 @@ async fn setup_sealed_gate(
     actors
         .vault
         .ask(Bootstrap {
-            seal_key_raw: SafeCell::new(seal_key.to_vec()),
+            seal_key: arbiter_server::crypto::KeyCell::from(*seal_key),
         })
         .await
         .unwrap();
@@ -50,7 +47,7 @@ async fn setup_sealed_gate(
 
 async fn client_dh_encrypt(
     gate: &kameo::actor::ActorRef<VaultGate>,
-    key_to_send: &[u8],
+    key_to_send: &[u8; 32],
 ) -> HandleUnsealEncryptedKey {
     let client_secret = EphemeralSecret::random();
     let client_public = PublicKey::from(&client_secret);
@@ -83,7 +80,7 @@ async fn client_dh_encrypt(
 #[tokio::test]
 #[test_log::test]
 pub async fn unseal_success() {
-    let seal_key = b"test-seal-key";
+    let seal_key = b"test-seal-key-padded-to-32bytes!";
     let (_db, gate, _promotion_rx) = setup_sealed_gate(seal_key).await;
 
     let encrypted_key = client_dh_encrypt(&gate, seal_key).await;
@@ -95,10 +92,10 @@ pub async fn unseal_success() {
 #[tokio::test]
 #[test_log::test]
 pub async fn unseal_wrong_seal_key() {
-    let seal_key = b"test-seal-key";
+    let seal_key = b"test-seal-key-padded-to-32bytes!";
     let (_db, gate, _promotion_rx) = setup_sealed_gate(seal_key).await;
 
-    let encrypted_key = client_dh_encrypt(&gate, b"wrong-key").await;
+    let encrypted_key = client_dh_encrypt(&gate, b"wrong-key-padded-to-32-bytes!!!!").await;
 
     let response = gate.ask(encrypted_key).await;
     assert!(matches!(
@@ -112,7 +109,7 @@ pub async fn unseal_wrong_seal_key() {
 #[tokio::test]
 #[test_log::test]
 pub async fn unseal_corrupted_ciphertext() {
-    let seal_key = b"test-seal-key";
+    let seal_key = b"test-seal-key-padded-to-32bytes!";
     let (_db, gate, _promotion_rx) = setup_sealed_gate(seal_key).await;
 
     let client_secret = EphemeralSecret::random();
@@ -143,11 +140,11 @@ pub async fn unseal_corrupted_ciphertext() {
 #[tokio::test]
 #[test_log::test]
 pub async fn unseal_retry_after_invalid_key() {
-    let seal_key = b"real-seal-key";
+    let seal_key = b"real-seal-key-padded-to-32bytes!";
     let (_db, gate, _promotion_rx) = setup_sealed_gate(seal_key).await;
 
     {
-        let encrypted_key = client_dh_encrypt(&gate, b"wrong-key").await;
+        let encrypted_key = client_dh_encrypt(&gate, b"wrong-key-padded-to-32-bytes!!!!").await;
 
         let response = gate.ask(encrypted_key).await;
         assert!(matches!(

server/crates/arbiter-server/tests/vault/concurrency.rs

@@ -166,7 +166,7 @@ async fn decrypt_roundtrip_after_high_concurrency() {
         .await
         .unwrap();
     decryptor
-        .try_unseal(SafeCell::new(b"test-seal-key".to_vec()))
+        .try_unseal(arbiter_server::crypto::KeyCell::from([0u8; 32]))
         .await
         .unwrap();
 

server/crates/arbiter-server/tests/vault/lifecycle.rs

@@ -3,14 +3,19 @@ use arbiter_crypto::safecell::{SafeCell, SafeCellHandle as _};
 use arbiter_server::{
     actors::{
         GlobalActors,
-        vault::{Error, Vault},
+        vault::{Error, GetState, Vault, VaultState},
+        vault_coordinator::{
+            ContributeBootstrap, ContributeRecoveryBootstrap, ContributeRecoveryUnseal,
+            Error as CoordinatorError, StartBootstrap, VaultCoordinator,
+        },
     },
-    crypto::encryption::v1::{Nonce, ROOT_KEY_TAG},
+    crypto::{KeyCell, encryption::v1::{Nonce, ROOT_KEY_TAG}},
     db::{self, models, schema},
 };
 
-use diesel::{QueryDsl, SelectableHelper};
+use diesel::{ExpressionMethods, QueryDsl, SelectableHelper, insert_into};
 use diesel_async::RunQueryDsl;
+use kameo::actor::Spawn as _;
 
 #[tokio::test]
 #[test_log::test]
@@ -20,7 +25,7 @@ async fn test_bootstrap() {
         .await
         .unwrap();
 
-    let seal_key = SafeCell::new(b"test-seal-key".to_vec());
+    let seal_key = KeyCell::from([0u8; 32]);
     actor.bootstrap(seal_key).await.unwrap();
 
     let mut conn = db.get().await.unwrap();
@@ -43,7 +48,7 @@ async fn test_bootstrap_rejects_double() {
     let db = db::create_test_pool().await;
     let mut actor = common::bootstrapped_vault(&db).await;
 
-    let seal_key2 = SafeCell::new(b"test-seal-key".to_vec());
+    let seal_key2 = KeyCell::from([0u8; 32]);
     let err = actor.bootstrap(seal_key2).await.unwrap_err();
     assert!(matches!(err, Error::AlreadyBootstrapped));
 }
@@ -105,7 +110,7 @@ async fn test_unseal_correct_password() {
     let mut actor = Vault::new(db.clone(), GlobalActors::spawn_message_bus())
         .await
         .unwrap();
-    let seal_key = SafeCell::new(b"test-seal-key".to_vec());
+    let seal_key = KeyCell::from([0u8; 32]);
     actor.try_unseal(seal_key).await.unwrap();
 
     let mut decrypted = actor.decrypt(aead_id).await.unwrap();
@@ -129,13 +134,137 @@ async fn test_unseal_wrong_then_correct_password() {
         .await
         .unwrap();
 
-    let bad_key = SafeCell::new(b"wrong-password".to_vec());
+    let bad_key = KeyCell::from([1u8; 32]);
     let err = actor.try_unseal(bad_key).await.unwrap_err();
     assert!(matches!(err, Error::InvalidKey));
 
-    let good_key = SafeCell::new(b"test-seal-key".to_vec());
+    let good_key = KeyCell::from([0u8; 32]);
     actor.try_unseal(good_key).await.unwrap();
 
     let mut decrypted = actor.decrypt(aead_id).await.unwrap();
     assert_eq!(*decrypted.read(), plaintext);
 }
+
+#[tokio::test]
+#[test_log::test]
+async fn two_operator_vault_requires_recovery_share() {
+    let db = db::create_test_pool().await;
+    let bus = GlobalActors::spawn_message_bus();
+    let vault_ref = Vault::spawn(Vault::new(db.clone(), bus).await.unwrap());
+    let coordinator = VaultCoordinator::spawn(VaultCoordinator::new(db, vault_ref));
+
+    let err = coordinator
+        .ask(StartBootstrap {
+            operator_id: 1,
+            declared_count: 2,
+            recovery_count: 0,
+        })
+        .await
+        .unwrap_err();
+
+    assert!(
+        matches!(
+            err,
+            kameo::error::SendError::HandlerError(CoordinatorError::TwoOperatorsRequireRecovery)
+        ),
+        "expected TwoOperatorsRequireRecovery, got {err:?}"
+    );
+}
+
+/// §3.4: Bootstrap with 1 ordinary + 1 recovery operator produces a valid 1-of-2 Shamir split.
+/// Both ordinary and recovery shares are stored; the vault can be unsealed with either one.
+#[tokio::test]
+#[test_log::test]
+async fn recovery_share_stored_and_used_for_unseal() {
+    let db = db::create_test_pool().await;
+    let bus = GlobalActors::spawn_message_bus();
+    let vault_ref = Vault::spawn(Vault::new(db.clone(), bus).await.unwrap());
+    let coordinator = VaultCoordinator::spawn(VaultCoordinator::new(db.clone(), vault_ref.clone()));
+
+    // Register one ordinary operator and one recovery operator in the DB
+    let ordinary_id: i32 = {
+        let mut conn = db.get().await.unwrap();
+        insert_into(schema::operator_identity::table)
+            .values(schema::operator_identity::public_key.eq(vec![1u8; 32]))
+            .returning(schema::operator_identity::id)
+            .get_result(&mut conn)
+            .await
+            .unwrap()
+    };
+    let recovery_id: i32 = {
+        let mut conn = db.get().await.unwrap();
+        insert_into(schema::recovery_operator_identity::table)
+            .values(schema::recovery_operator_identity::public_key.eq(vec![2u8; 32]))
+            .returning(schema::recovery_operator_identity::id)
+            .get_result(&mut conn)
+            .await
+            .unwrap()
+    };
+
+    // Declare committee: 1 ordinary + 1 recovery
+    coordinator
+        .ask(StartBootstrap {
+            operator_id: ordinary_id,
+            declared_count: 1,
+            recovery_count: 1,
+        })
+        .await
+        .unwrap();
+
+    // Recovery operator contributes first — bootstrap should not finalize yet
+    let done = coordinator
+        .ask(ContributeRecoveryBootstrap {
+            recovery_operator_id: recovery_id,
+            passphrase: SafeCell::new(b"recovery-pass".to_vec()),
+        })
+        .await
+        .unwrap();
+    assert!(!done, "should not finalize with only recovery passphrase");
+
+    // Ordinary operator contributes — now bootstrap finalizes
+    let done = coordinator
+        .ask(ContributeBootstrap {
+            operator_id: ordinary_id,
+            passphrase: SafeCell::new(b"ordinary-pass".to_vec()),
+        })
+        .await
+        .unwrap();
+    assert!(done, "should finalize once all contributors are in");
+
+    // After bootstrap, vault is Unsealed (seal key still in memory).
+    let state = vault_ref.ask(GetState {}).await.unwrap();
+    assert_eq!(state, VaultState::Unsealed);
+
+    // Verify recovery_operator row was created
+    let recovery_share_count: i64 = {
+        let mut conn = db.get().await.unwrap();
+        schema::recovery_operator::table
+            .count()
+            .get_result(&mut conn)
+            .await
+            .unwrap()
+    };
+    assert_eq!(recovery_share_count, 1);
+
+    // Simulate restart: drop vault and coordinator, create fresh vault (comes up Sealed).
+    drop(coordinator);
+    drop(vault_ref);
+    let bus2 = GlobalActors::spawn_message_bus();
+    let vault_ref2 = Vault::spawn(Vault::new(db.clone(), bus2).await.unwrap());
+    let state = vault_ref2.ask(GetState {}).await.unwrap();
+    assert_eq!(state, VaultState::Sealed);
+
+    // §3.5: Unseal using ONLY the recovery operator share (threshold = shamir_threshold(1) = 1).
+    let coordinator2 = VaultCoordinator::spawn(VaultCoordinator::new(db.clone(), vault_ref2.clone()));
+    let done = coordinator2
+        .ask(ContributeRecoveryUnseal {
+            recovery_operator_id: recovery_id,
+            passphrase: SafeCell::new(b"recovery-pass".to_vec()),
+        })
+        .await
+        .unwrap();
+    assert!(done, "recovery share alone should satisfy threshold");
+
+    let state = vault_ref2.ask(GetState {}).await.unwrap();
+    assert_eq!(state, VaultState::Unsealed);
+}