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How escrow, milestone voting and the secondary market work, and what can go wrong. If a claim is explained anywhere else in fewer words than this, that explanation is incomplete.
A claim is an ERC-1155 token unit minted against committed capital. If you commit at a claim price of 5 USDG, 1,000 units cost 5,000 USDG and you hold 1,000 units.
A claim is not equity. It carries no ownership, dividend or governance rights in any company. What it represents is a position in the project's escrow: a proportional right to vote on milestone releases, and a proportional right to any refund if the project is cancelled or defaults.
Into MilestoneEscrow, not to the founder. The registry forwards committed value to escrow at the moment of commitment.
The founder can only receive funds when a specific tranche is released. Tranche amounts are fixed when the project is registered and must sum exactly to the funding target, so every unit of committed capital has an assigned release condition before funding opens.
The sequence is fixed in the contract:
Vote weight is snapshotted at submission, so claims bought after evidence is posted cannot influence that milestone's outcome.
Without a snapshot, a holder could borrow or buy claims, vote, and immediately sell, while genuinely long-term holders had no protection. The snapshot fixes each voter's influence to the moment the review opened, which is also what makes a secondary-market transfer safe to execute during an open vote.
If milestones are rejected, the tranches attached to them stay in escrow. A protocol oracle can escalate a disputed milestone and resolve it, either releasing or rejecting.
If a project is marked CANCELLED (target not met) or DEFAULTED, holders can claim a pro-rata refund from the remaining escrow balance and their claims are burned.
Escrow reduces counterparty risk — the founder cannot simply walk off with the money — but it does not remove production risk. Hardware can still be late, over cost, or fail to ship.
A holder lists claims by transferring them into SecondaryMarket at an ask price. Escrowing the units on list means a listing can never turn out to be unfillable because the seller moved the tokens.
The seller may cancel at any time and reclaim unsold units. A protocol fee of 1% applies on settlement, fixed at listing time so a later fee change cannot alter an open order.
The material risks include, at minimum:
The protocol takes 1% on secondary-market settlement only. There is no fee on commitment, on milestone release, or on refunds. Network gas is your own cost on every transaction.
No. This site describes a mechanism. It does not evaluate whether any particular project is a sound use of your capital, and it does not recommend any position. Do your own diligence on the hardware, the founder and the production plan before committing anything.
The mechanism is described in more depth on the How It Works page, and the rules above are enforced in the contracts themselves.