Milestone Agreements

Milestones let you break a payment into stages. Instead of holding the full amount until the entire job is done, each milestone has its own token amount (USDC or DAI) and is approved independently.

When to use milestones

• Multi-phase projects — design, development, launch
• Ongoing work — monthly deliverables with separate payouts
• High-value deals — reduce risk by paying in increments
• Trust-building — a new working relationship where both sides want checkpoints

How it works

Creating a milestone agreement

1. Start creating a new Escrow agreement as usual
2. Toggle Use milestones in the creation form
3. Add milestones — each one needs a title and amount
4. The total of all milestones equals the total escrow amount
5. Fund the agreement — the full amount is deposited upfront into escrow

Approving milestones

Each milestone is approved separately. When the approval threshold is met for a specific milestone:

• That milestone’s funds are released to the recipient immediately
• Remaining milestones stay in escrow, untouched
• The agreement stays Active until all milestones are complete

Example

A $3,000 web design project split into three milestones:

The payer deposits the full $3,000 USDC upfront. As each deliverable is completed and approved, that milestone’s funds release automatically.

Cancellation with milestones

If a milestone agreement is cancelled:

• Approved milestones — already paid out, those funds stay with the recipient
• Remaining milestones — refunded to the payer

This protects both parties: the recipient keeps what they’ve earned, and the payer gets back what hasn’t been delivered.

Plan limits

Tips

• Name your milestones clearly — “Phase 1” is vague; “Homepage wireframe with responsive mockup” is specific
• Front-load smaller amounts — build trust with a smaller first milestone before larger payouts
• Match milestones to deliverables — each milestone should correspond to something concrete the recipient can deliver and the payer can verify