Smart Escrow Contracts in ArcusX
A deep dive into how trustless payments are enforced on-chain.
ArcusX uses blockchain-powered smart escrows to automate and secure payments between task creators and contributors. This mechanism ensures funds are only released when both parties agree or when a dispute is resolved fairly by a moderator.
🔎 What is a Smart Escrow?
A Smart Escrow is a self-executing smart contract that holds funds securely while work is being completed. It only releases the payment once predefined conditions are met.
In ArcusX, this enables:
🔒 Non-custodial payment holding (no one controls the funds manually)
✅ Trustless task validation
⚖️ On-chain dispute resolution
🧩 Flexible milestone design (future-ready)
⚙️ How It Works (Step-by-Step)
Task Creation
Task Creator defines the work scope, deadline, and payout.
The reward is locked in the smart contract using ARCX token (and soon USDC too!).
Proposal Phase
Contributors submit proposals.
The Task Creator selects one. No work can start until someone is officially selected.
Work Completion
The selected Contributor completes the task and marks it as submitted.
Dual Confirmation
Task Creator confirms the work is acceptable.
Contributor confirms they delivered.
When both confirmations are on-chain, funds are released.
Dispute Mode (if needed)
If one party rejects the confirmation, the contract freezes the funds and flags a dispute.
The Moderator steps in, reviews both sides, and decides.
The decision is final and enforced by the smart contract.
Payout
The funds are sent directly to the Contributor or refunded to the Task Creator depending on the outcome.
🧠 Smart Contract Roles
Task Creator
Funds the task and confirms delivery.
Contributor
Completes the task and requests payment.
Moderator
Resolves disputes if needed.
Smart Contract
Enforces the logic, holds funds, and automates payouts.
ArcusX Platform
(Optional) Collects protocol fees or logs metrics.
🛡️ Why It’s Trustless
✅ No third party ever holds funds manually
💡 No action happens without dual confirmation or verified dispute resolution
⛓️ All logic is transparent and auditable on-chain
🌍 Accessible to anyone with an internet connection and wallet
DISCLAIMER: We're not a bank!
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