Stake Account System

Innovation Category: Economic Infrastructure
Status: System Design Complete

Core Concept

A Stake Account is the portion of a member’s Joules that are RESERVED as collateral for:

• Bounty postings
• Contract commitments
• Service guarantees
• Reputation backing

Joules in the Stake Account can generate MARKS (be used as backing for reputation commitments) but cannot be spent until contracts are fulfilled.

Why “Stake” not “Bond”? The term “stake” clearly communicates “skin in the game” without any confusion with financial securities or bonds. You’re staking your Joules as a guarantee.

How It Works

1. Joule Allocation

Members can allocate Joules from their portfolio to their Stake Account:

Total Joules: 1,000
├── Available Joules: 700 (can spend freely)
└── Stake Account: 300 (reserved as collateral)
    ├── Bounty A: 100 Joules
    ├── Bounty B: 150 Joules
    └── Unallocated Reserve: 50 Joules

2. Posting a Joule-Backed Bounty

When posting a bounty with Joules:

1. Member specifies Joule amount
2. Joules move to Stake Account (reserved)
3. Contract terms are set (deliverables, timeline)
4. Joules released when both parties sign off

3. Mark Generation from Collateral

Stake Account Joules can be used to generate MARKS for reputation commitments:

This means: “I’ll give you 20 marks of my service” is BACKED by real Joule collateral.

Contract Fulfillment Flow

Standard Flow

1. POSTER creates bounty with Joule collateral
   └── Joules → Stake Account (locked)

2. CLAIMANT accepts bounty
   └── Contract terms recorded

3. CLAIMANT delivers work

4. POSTER reviews and approves
   └── Signs off on contract

5. CLAIMANT confirms satisfaction
   └── Signs off on contract

6. Joules RELEASED
   └── To Claimant (or converted to Credits/MARKS per contract)

Dispute Resolution

If parties disagree:

1. Harper Review — Neutral third party examines
2. Evidence Submission — Both parties submit
3. Resolution — Harper decides release terms
4. Appeal — Star Chamber if needed

Reputation Connection

All Stake Account transactions affect reputation:

Security Features

Cannot Be Spent While Reserved

Once Joules are in Stake Account and allocated to a contract:

• Cannot be transferred
• Cannot be spent
• Cannot be withdrawn
• Only released by contract completion or dispute resolution

Time-Lock Option

Members can add time-locks:

• “Release only after 30 days minimum”
• “Release only after both parties confirm”
• “Release in installments (25% at milestone)”

Overcollateralization

Members can over-collateralize for trust building:

• Bounty: 100 Credits
• Stake: 200 Joules (2x backing)
• Signal: “I’m serious about this commitment”

Use Cases

Custom Business Card Design

BOUNTY: Design my brand business cards
PAYMENT: 50 Credits + 20 MARKS of my consulting services
STAKE: 100 Joules (collateral backing the MARKS)
TERMS: Delivery within 2 weeks, 2 revisions included

Service Exchange

BOUNTY: Build my website
PAYMENT: 100 MARKS of my photography services
STAKE: 500 Joules (backing the MARKS value)
TERMS: Site live within 1 month, 90-day support included

Physical Fulfillment

BOUNTY: Print and ship 500 business cards
PAYMENT: 75 Credits (immediate)
STAKE: 0 Joules (not needed for direct Credit payment)
TERMS: Ship within 1 week of design approval

Integration Points

Key Terms

Economic Philosophy

The Stake Account system ensures that:

1. Commitments have real backing — MARKS aren’t just promises
2. Reputation has teeth — Bad actors lose real value
3. Trust is built systematically — History creates credibility
4. The system is self-enforcing — No central authority needed

“Put your money where your MARKS are.”