🏦 Payout Provider
A Payout Provider is a key role in GrantFox. It refers to the entity that distributes the funds, meaning funding the escrow and initiating milestone-based payouts.
In GrantFox, the Payout Provider is always the source of funding, but without ever needing to manually process payments - everything is automated via smart escrows on Stellar.
🔍 What is a Payout Provider?
In practical terms, a Payout Provider:
Creates the engagement with the grantee or recipient.
Funds the escrow with the total payout amount.
Defines the milestones that unlock payments.
Approves each milestone.
Triggers the payout for each completed milestone.
✅ In GrantFox, this is a wallet that holds the funds and signs payouts directly.
🔐 Why Is This Role Important?
GrantFox is built to be non-custodial and trust-minimized. The Payout Provider never gives control of the funds to a third party, instead, funds are locked in escrow and only released after clear approval signals, recorded on-chain.
Benefits:
Clear ownership and accountability.
Immutable funding agreements.
Verifiable fund flows.
Zero risk of unilateral fund access.
The Payout Provider defines the funding relationship and lets smart contracts enforce it - securely and transparently.
🧪 Real Example: SCF Build Award
Let’s say the Stellar Community Fund (SCF) selects a winning project for a $150,000 Build Award.
Here’s how SCF acts as a Payout Provider:
Wallet Setup: SCF configures a Stellar wallet to fund the award.
Engagement Creation: They create a GrantFox engagement with 3 milestones:
MVP delivery – $30,000
Testnet release – $50,000
Mainnet deployment – $70,000
Escrow Funding: The full $150,000 is locked into a GrantFox smart escrow.
Reviewer Assignment: SCF designates internal team members as reviewers for milestone evidence.
Milestone Flow: As each deliverable is submitted and approved, funds are released instantly - with no spreadsheets, no delay.
👥 Who Can Be a Payout Provider?
Foundations like Stellar and grant programs.
DAOs.
Hackathon organizers.
Individual funders or core teams.
Community treasuries.
If you're funding contributors and want control, verification + automation, you are the Payout Provider.
🧩 Summary
The Payout Provider is the funder - the wallet that owns the grant or payout capital.
It configures the engagement and funds escrow.
It approves milestones directly.
It brings transparency and automation to every transaction.
GrantFox empowers Payout Providers to streamline funding - securely, scalably, and without intermediaries.
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