🔎How It Works

An Overview on How PledgePool Works

What is PledgePool?

PledgePool™ is a new type of fund raising platform that allows participants to support project without giving up their tokens. Unlike traditional funding raising platforms that simply transfer tokens to a project, Participants 'pledge' tokens to a pool for a specific length of time (staking period). Those tokens are then staked to a reward source to generate a staking reward (yield). At the end of the pools staking period, the accumulated yield is transferred to the beneficiary and the pledged token stakes are returned to the participants. A PledgePool™ consists of three components: reward source, staking terms, and a payout

1. Reward Source defines the source of yield/rewards. Reward Sources can be staking rewards, Defi reward, real world assets like US Treasury Bonds, NFTs, project tokens or any combination thereof.

2. Staking Terms Staking terms define the pool type, staking token, staking amount, staking period and the number of participants.

3. Payout defines how the rewards are distributed.

User Roles

There are three user roles within the PledgePool platform: Participant, Beneficiary and Pool Manager. Anyone you stakes the required amount of BENY tokens can level their Participant account to Beneficiary or Pool Manager.

Beneficiary

The Beneficiary is the recipient of staking rewards as per the pool payout configuration. Becoming a Beneficiary requires conviction, sincerity, honesty, integrity, perseverance, agreement to the Beneficiary’s Terms of Service, AND… sponsorship of a Pool Manager. Beneficiaries must complete a pool application. Pool applications are reviewed by Pool Managers who then propose pool terms. The Beneficiary then selects the terms that best meet their needs, and the pool is created.

Participant

The Participant is a token holder that pledges tokens to a pool for a specific period of time and may receives a reward or token distribution in return. After the staking period has expired, the pledged tokens are return to the Participant. A Participant must agree to the Terms of Service and the unique terms of the pools they are entering.

Pool Manager

A Pool Manager (PM) creates and executes pools. Pool Managers also form the voting members of the BennyFi DAO governance. Anyone can become a Pool Manager by acquiring a staking the required amount of BENY tokens and agreeing to the platform’s Terms of Service. BennyFi relies on Pool Managers to create content in the form of pools and to enforce the communities’ Terms of Service. PMs are compensated through commissions and the PledgePool System Reward Fund. Commission are paid from the pools yield. System Rewards are based on a Pool Managers performance. Performance is measured as the combination of the number of successful pools created and the reward those pools generated for Beneficiaries and Participants.

Example Funding Campaign

Turtle Rescue needs to fund its annual operations. Turtle Rescue stakes the required amount of BENY tokens to level up to a Beneficiary Account and completes their Beneficiary profile so their donors can find them. Turtle Rescue creates the TRTL token to represents a admission ticket to the annual Turtle hatching and other charity events. Turtle Rescue creates the 'Nest Inspector' project to raise funding to hire a full time turtle nest inspector. Turtle Rescue is now ready to apply for a pool. Pool Managers review the pool application and create pools to raise the necessary funding. Turtle Rescue reviews the terms of the created pools and funds the pool they like most by depositing TRTL tokens into the pool. Depositing TRTL token represents the Turtle Rescue's acceptance of the Pool Managers terms. Once the TRTL project tokens are deposited, the pool will open at its scheduled start time. Participants then find the pool, review the terms and stake tokens to the pool. Once the required number of participants enter the pool, the pool closes and the staking period begins. Once the staking period has expired, the resulting yield and project tokens are distributed as per the pools distribution configuration and the orginal staked tokens are returned to the pools participants. Participant now have TRTL tokens that they can use as tickets to watch the turtle eggs hatch. Turtle Rescue can use the yield generated by the pool to hire a 'Nest Inspector' . Participant can now re-use their staking tokens to fund another project.