We should not rely on trusting others - we should use trust-less codes to privately collect the unique data that links real unique identities (using a document verification process connected to the official passport/ID card system) to ‘governing wallets’ and then auto-erase most the data and all the connections of that data to the corresponding ‘governing wallets’ after the identities are confirmed and the wallets have been created.
To ensure that a unique identity doesn’t create more than a single (1) wallet, shards of unique data must be kept. Through the use of zero-knowledge proof, those shards can prevent unique identities from creating multiple wallets by proving those identities already have a ‘governing wallet’ without releasing any private data to the public.
Those shards of data will remain in the system, protected by zero-knowledge proof, disconnected from the corresponding wallets. So, if the shards of data were compromised and declassified, the wallets associated with them would already be disconnected from them resulting in account privacy protection.
The remaining question is: How do we prevent people from buying/selling the keys to ‘governing wallets’? Those transactions could lead to the centralization of governing power in the Terra Classic ecosystem.