Escrow Lifecycle

The escrow lifecycle is the structured flow of actions and responsibilities that secure a transaction. At Trustless Work, we break this into clear phases, ensuring transparency, adaptability, and cons

Core Phases:

1. Initiation Phase:

The foundation of the escrow:

• Roles and responsibilities are defined

• Transaction terms (amount, milestones, fees, trustline) are set

• The escrow contract is created on-chain

Learn More

2. Funding Phase:

• Anyone can deposit funds

• Once funded, the escrow is live and ready for milestone tracking

. Learn More

3. Milestone Updates Phase:

• Marked as completed

• Optional evidence or proof can be added

• Provides visibility for review

Learn More

4. Approval

Milestones are reviewed by the Approver.

• Can approve if conditions are met

• Can raise a dispute if unsatisfied

Approval moves the escrow closer to payout.

Learn More

5. Release

The Release Signer authorizes payout.

• Single-Release → all milestones must be approved before one payout

• Multi-Release → funds are released milestone by milestone

Funds are transferred to the Receiver, minus any platform fee.

Lean More

---

⚠️ Alternative Phase: Dispute Resolution

If any party raises a dispute, the lifecycle takes a detour:

Dispute Resolution

• Dispute Resolver steps in to resolve the conflict

• Can redirect funds, adjust milestones, or cancel the escrow

• Outcomes can be:

  • Full refund to client

  • Partial refund

  • No refund (funds go to provider)

Learn more