Lets Talk Fees
Last updated
Last updated
The model enables staking user funds with an upfront reservation of service fees, ensuring that platform commissions are deducted only when the user earns a profit. The system centers around a multi-signature escrow account, where both the user and the platform must consent to all profit-related transactions.
Delegation: Users delegate their TAO tokens for staking through the platform.
Service Fee Reservation: At the start of the delegation, a portion of the user’s tokens is reserved in a multi-signature escrow account. This reserved amount will cover future commissions but is only deducted if profits are generated.
Escrow Setup: A multi-signature wallet is created between the platform, the user, and RoundTable21, a trusted third party. Both parties must sign off on any withdrawals from the escrow.
Profit Calculation: After a staking period, the platform calculates the profits earned by the user’s stake. This calculation includes all rewards minus any costs such as transaction fees.
Commission Deduction: If profits are made, a commission (e.g., a percentage of the profits) is automatically deducted from the reserved funds in the multi-signature escrow account.
Example: If the user earns 100 TAO and the platform's commission is 10%, the platform receives 10 TAO from the escrow, while the remaining 90 TAO is credited to the user.
Escrow Release: Both the user and platform must mutually agree on the profit calculation and sign off on releasing funds from the escrow. This ensures transparency and prevents any unilateral withdrawals.
Profit Credit: Once the commission is deducted, the remaining profit is credited to the user’s account. They can then choose to withdraw or reinvest their earnings in additional staking.
