Detailed functionalities

CP initial deposit

The initial deposit by a Certified Partner (CP) serves as a collateral to ensure the marketplace team's commitment and performance. This deposit:

• Acts as a guarantee against underperformance, safeguarding community members.

• Is required to be a minimum of 500 sBST, ensuring that CPs have a vested interest in the success of their marketplace.

• The higher the CP initial deposit, the higher the APY the marketplace pool will earn for the community.

• A marketplace pool must be maintained at 100,000 sBST at all times to qualify for BST rewards, emphasizing the importance of meeting community expectations.

Campaign configuration

The exclusive control over campaign configuration by Blocksquare is crucial for maintaining the quality and viability of marketplace proposals. This control ensures:

• Compliance with KYB and collaboration agreements, ensuring that only verified and committed partners can initiate marketplace pools.

• The community's ability to support new operators through informed decisions, reinforcing the ecosystem's integrity.

Maximum pledge

For each marketplace pool campaign, the maximum sBST amount you can pledge increases daily, starting from an initial limit. This continues until the campaign's midpoint is reached. This means that during an active marketplace pool campaign, individual wallets are capped to invest a limited amount of sBST. This maximum pledge limit linearly increases during the campaign and is completely lifted once the campaign is half way through. This mechanism encourages wider participation by:

• Allowing smaller investors to participate early in the campaign creating higher diversification of pool stakeholders.

• Gradually enabling larger investments, ensuring that pools have the opportunity to be fully funded while maintaining equitable access.

For example, in a 30-day campaign aiming to crowdfund 90,000 sBST with an initial maximum pledge of 9,000 sBST, the pledge limit grows by 5,400 sBST each day. So, by day 15, you could pledge up to 90,000 sBST.

This design encourages early participation while gradually allowing for larger contributions, ensuring broad and fair community engagement.

Post-campaign deposits

Allowing further sBST deposits after the campaign end date addresses the need to maintain the required sBST balance for earning rewards, offering flexibility by:

• Permitting CPs and community members to add funds to maintain and meet the 100,000 sBST requirement, ensuring the pool remains eligible for rewards.

• Introducing a safeguard mechanism where the community lock is lifted if the pool's balance drops below the threshold, encouraging prompt action to maintain pool health.

Withdrawal conditions

Withdrawal conditions for Certified Partners are designed to balance their ability to reclaim their collateral with the need to protect the interests of pool participants by:

• Allowing withdrawals under specific conditions such as unsuccessful campaigns or governance board evaluations, ensuring CP accountability.

• Providing a clear signal to the governance board through community withdrawals, allowing for responsive adjustments to pool operations.

• Community withdrawals: Marketplace pools implement a withdrawal lock period for community contributors, triggered when the pool reaches the 100,000 sBST cap. This lock ensures community investments remain committed to the pool's success for a predefined period, set at half the duration of the CP's lock period. If the pool's balance drops below 100,000 sBST for more than 10 days, this lock is lifted to encourage CP responsiveness.

• CP withdrawals: The CP's withdrawal lock period is set at twice the length of the community's, underscoring their higher level of commitment to the pool. This period begins once the pool hits the 100,000 sBST target, reinforcing the CP's responsibility to maintain pool health and success. This mechanism ensures the CP is incentivized to actively manage and support their marketplace.

Collateral liquidation

When launching a marketplace pool, Certified Partners define a set of KPIs they intend to achieve within a maximum of 24 months. These KPIs can be anything, from number of registered users, assets under tokenization, offerings completed, secondary market properties, revenues distributed, and so on. To ensure commitment, an amount of at least 500 sBST is deposited as collateral when activating a marketplace pool. At the end, an evaluation conducted by the governance board takes place to verify if the CP has achieved the KPIs set forth at the start.

The governance board's authority in deciding on collateral liquidation and lock extension underscores the role of centralized control in maintaining pool governance while transitioning towards a DAO model, ensuring:

• Decisions are made based on pre-defined KPIs and campaign outcomes, aligning with the ecosystem's goals.

• A pathway towards decentralized governance, reflecting the community's evolving role in ecosystem management.

Pools reward distribution

A fixed amount of BST is allocated to all active marketplace pools based on governance board vote. The reward distribution mechanism is tailored to address the unique aspects of our token model by calculating rewards based on the proportionate score of the pool, ensuring marketplace pools with a higher score offer a higher APY for the community of supporters.

Non-Transferability of Staked Tokens

The decision to make staked tokens non-transferable within the pool is critical for:

• Maintaining accurate reward calculations and distributions, preventing manipulation.

• Ensuring the integrity of the staking process, reinforcing the commitment of participants to their chosen marketplace pools.