Step 6: Coin Issuance

Following each Periodic Validation and Challenge Period, the protocol issues coins to the project’s contract based on the realized impact of the project. Yet, contributors cannot withdraw these coins unless there is consensus on how funds will be distributed between contributors and influencing projects and sources.

Contributors and influencers can agree among themselves on the proper distribution of funds and post it in the project contract. If no one disputes the distribution, coins are unlocked at the end of the Challenge Period. If consensus cannot be reached, contributors can mediate the distribution of funds through a decentralized review process; each contributor can present their claimed contribution and back it up with supporting evidence. The decentralized review will work similarly to the validation process (except that no new coins are issued since the dispute is a private matter and not a public good). The dispute can be over the entire project funding or a portion of it, and the cost of the mediation will vary accordingly — it is therefore always preferable to reach a consensus internally.