Lifecycle Overview

The tokenized private credit flow built on top of Trustless Work consists of six sequential stages, each representing a clear handoff of responsibility and capital state.

The entire lifecycle consists of:

1. Project Configuration -> Contracts deployment

2. Token Sale → Fundraising

3. Escrow Funding → Capital enters milestone-controlled escrow

4. Project Execution → Milestones & releases via Trustless Work

5. ROI Deposit → Vault setup for investor payout

6. Investor Claims → Token burn + payout

The diagram below illustrates this end-to-end flow.

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1. Project Configuration → Contract Deployment

Objective: The project creator sets up the full structure of the investment round.

Key Actions:

• Configure the project in the Backoffice

• Deploy:

  • Escrow Contract (milestones + roles)

  • Participation Token (via Token Factory)

  • Token Sale Contract (price, cap, deadlines)

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2. Token Sale → Fundraising

Objective: Investors swap USDC for participation tokens representing their share of the investment.

Key Actions:

• Investor uses the Investor Portal

• Calls buy() on the Token Sale Contract

• Token Sale Contract:

  • Receives USDC

  • Mints Participation Tokens (PT)

  • Sends PT to investor

Outcome: Investors hold PT, and the Token Sale Contract holds all contributed USDC.

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3. Escrow Funding → Capital Enters Controlled Escrow

Objective: Swap proceeds are automatically deposited into a milestone-based escrow for transparency and control.

Key Actions:

• Token Sale Contract deposits accumulated USDC into the Escrow Contract

• Trustless Work:

  • Locks funds

  • Records deposits

  • Exposes full transparency through the Escrow Viewer and API

Outcome: Capital is secured in a programmable, auditable escrow governed by milestones.

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4. Project Execution → Milestones & Releases

Objective: Real-world work progresses while fund releases remain tied to on-chain verifications.

Key Actions:

• Project Manager updates milestones (evidence, status)

• Approver signs milestone verification

• Release Signer executes release

• Escrow releases milestone amounts to the Project Owner

Outcome: Funds are released progressively as the project advances, with full transparency for investors.

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5. ROI Deposit → Vault Setup

Objective: When the project completes, the project creator deposits principal + yield into a redemption vault.

Key Actions:

• Deploy Vault Contract

• Deposit USDC (ROI pool)

• Set price_per_token

• Open the Vault for claims

Outcome: A fixed redemption rate is defined and the ROI pool becomes claimable.

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6. Investor Claims → Token Burn + Payout

Objective: Investors redeem their participation tokens for USDC.

Key Actions:

• Investor connects wallet to Claim Portal

• Calls claim()

• Vault Contract:

  • Burns PT

  • Sends balance × price_per_token in USDC

  • Tracks redemption progress

Outcome: Tokens are burned, investors receive payouts, and the vault settles until empty.