Milestone-Based Releases
Automated payment releases tied to verified completion of trade milestones
What are Milestone-Based Releases?
Milestone-based releases are automated escrow payments triggered when specific, verifiable events occur in the trade process. Instead of paying upfront or waiting until final delivery, payments are released incrementally as each milestone is achieved and verified.
This protects both buyers and sellers: buyers don't pay until services are completed, and sellers/service providers receive payment immediately upon milestone verification without delays.
How Milestone Releases Work on TAWDO
Escrow Funding
Buyer deposits full payment into blockchain-secured escrow at contract signing
Milestone Definition
Contract specifies milestones (e.g., 30% on FAT, 40% on PSI, 30% on delivery) and verification requirements
Verification Trigger
When milestone is achieved, verification partner submits digital certificate to TAWDO
Blockchain Verification
Certificate authenticity verified on blockchain, triggering smart contract execution
Automatic Release
Escrow automatically releases milestone payment to seller and verification partner
Transparent Tracking
All parties can track milestone progress and payment status in real-time
Common Milestones
- Contract signing (deposit/advance payment)
- Factory Acceptance Test (FAT) passed
- Pre-Shipment Inspection (PSI) cleared
- Delivery confirmed and accepted