Escrow is a widely used legal concept where a third party holds assets or funding on the behalf of the two other parties according to a predetermined set of conditions. Escrow helps ensure that both parties deliver before the transaction is completed. The concept of escrow is popular in the traditional financial ecosystem, especially in the real estate industry.
However, Escrow Protocol aims to introduce the time-tested concept of escrow to the blockchain industry and optimize the crowdfunding process. Crowdfunding is an important part of project development as it connects the project with investors. However, the precedent standard of crowdfunding mechanisms such as ICO relies largely on trust which is often broken in the form of rug pulls.
In an ICO or other crowdfunding mechanisms, the start-up raises hundreds of millions of dollars from venture capitalists and investors. However, in the early development stage, they do not require 100% of the funds. This is where Escrow Protocol comes in as the escrow services to hold the funds and release them according to the milestone achieved by the projects. Escrow Protocol aims to secure blockchain and create a fair environment for investors by giving them control over their investments.
What is Escrow Protocol?
The Escrow Protocol is a decentralized Web3 accelerator and crowdfunding platform designed to give investors extended control over their invested funds. The project combines the best of blockchain and DeFi to develop an all-inclusive investment hub, a user-friendly platform that investors can use to support their favorite start-up projects with oversight, security, and peace of mind.
Escrow Protocol leverages financial security to manage DeFi funds, leveraging smart contracts and to-be respected agreements. The project holds investment funds and allocates them to yield farming protocols to maximize value appreciation and help projects gain interest while waiting for the pay-outs.
The features of Escrow Protocol includes:
- Escrow Protocol will be 100% DAO and community governed to ensure fairness and transparency.
- While the funds are held in Escrow, the projects allocate them to Yield-Farming Protocols and pay 80% to investors.
- Escrow Protocol has developed NFT ID-Badges that give access to the platform and host projects.
- The project is powered by a high-end, easy-to-use interface, allowing current non-crypto users to get involved.
- It offers community decision-making with investment relative voting power.
- A reputation-based scoring system allows the utilization of expert opinions within the community.
- White-Label Escrow service integration for existing real-world operations.
Escrow Protocol is making the blockchain technology and crowdfunding process simpler and safer for all investors. To learn more about Escrow Protocol, visit https://www.escrowprotocol.app/.