Milestone Payment Contract

 

Overview & Purpose

The Milestone Payment Contract is a smart contract module used in Kambria DAOs to manage structured, milestone-based payments to DAO partners (e.g. Dev or Organizer Partner).

It ensures that:

• Payments are released only after milestone completion
• DAO funds are disbursed progressively, not upfront
• Approval and execution follow DAO-defined rules
• All payment actions are transparent and verifiable on-chain

This contract is designed for DAOs executing projects that require multiple delivery phases and accountability over time.

 

When the Milestone Payment Contract Is Used

The milestone payment contract is used when:

• A DAO engages a Dev Partner / Organizer Partner
• Work is divided into clearly defined milestones
• Payments must be tied to delivery and approval
• The DAO treasury should not release funds in a single lump sum

Each milestone payment contract typically corresponds to one project or service agreement.

 

High-Level Milestone Payment Logic

At a conceptual level, the contract enforces the following logic:

1. Total milestones and total payment amount are defined upfront
2. Each milestone is assigned a specific payment amount
3. DAO Partner delivers work milestone by milestone
4. Milestones are reviewed and approved
5. Approved milestones trigger payment execution via smart contract

The contract ensures that:

• Milestones are completed in order
• Total payments cannot exceed the predefined amount
• No payment is released without completion approval

 

Payment Composition (KAT & USDT)

Milestone payments may include both KAT and USDT, depending on:

• The DAO treasury composition
• The agreed payment structure
• The exchange rate defined at milestone completion time

The exchange rate mechanism (e.g. KAT per USDT) is:

• Defined in advance
• Applied consistently
• Recorded on-chain during milestone completion

This avoids discretionary or off-chain price decisions.

 

Roles in the Milestone Payment Process

DAO Organizer

The DAO Organizer coordinates the milestone payment process at the DAO level.

Key responsibilities include:

• Defining the total number of milestones
• Setting the total payment amount
• Assigning payment amounts per milestone
• Managing milestone completion records

The DAO Organizer cannot bypass milestones or release funds arbitrarily.

 

DAO Council / Reviewers

Milestone completion requires DAO-level approval, which may involve:

• DAO Council members
• A designated review role
• Multi-signature confirmation via DAO treasury

This ensures payments reflect actual delivery and DAO consensus.

DAO Partner (Dev / Service Partner)

The DAO Partner:

• Delivers work according to milestone definitions
• Receives payment only after milestone completion
• Has no control over treasury execution logic

Milestone Setup (DAO Organizer Perspective)

After the contract is connected to the DAO:

• The total number of milestones is set
• The total payment amount is defined
• Individual milestones are configured with payment amounts
• The sum of all milestone amounts must equal the total payment

Once configured, milestone structure cannot be exceeded or reordered.

 

Milestone Completion & Payment Execution

When a milestone is completed:

1. DAO Organizer marks the milestone as completed
2. Payment parameters (USDT + KAT rate) are submitted
3. The contract validates milestone order and limits
4. Treasury execution is triggered via DAO permissions
5. Funds are transferred to the DAO Partner

Treasury execution may require multi-signature confirmation depending on DAO settings.

 

Treasury Interaction & Multi-Sig Execution

Milestone payments interact with the DAO treasury (e.g. Safe multisig):

• Payment execution may require signer approvals
• DAO participants receive notification to confirm transactions
• Execution status can be verified on-chain

 

Transparency and Verification

The Milestone Payment Contract provides:

• On-chain records of milestone completion
• Verifiable payment transactions
• Clear linkage between milestones and treasury transfers
• Compatibility with standard blockchain explorers

Any DAO member can independently verify:

• Which milestones were completed
• When payments were released
• How much was paid in KAT and USDT

Relationship to Kambria DAOs Framework

The Milestone Payment Contract is part of the Smart Contracts & Workflows layer of the Kambria DAOs Framework.

It supports:

• Accountable use of DAO funds
• Trust-minimized partner collaboration
• Long-term project execution
• Integration with DAO governance and treasury controls

Important Notes

• Milestone approval does not imply performance guarantees
• Payment timing depends on DAO review and treasury confirmation
• Exchange rates are defined per milestone
• Legal and contractual obligations remain off-chain

Summary

The Milestone Payment Contract enables Kambria DAOs to execute projects with clear accountability, structured delivery, and transparent payments.

By encoding milestone logic and payment conditions into smart contracts, DAOs can collaborate with partners while maintaining strong governance over their treasury and execution process.