Group Agreements
Most escrow platforms only handle two parties — a buyer and a seller. MyPact supports multi-party agreements where any number of people can participate, with a configurable approval threshold.
Example 1: DAO grant distribution
The situation
A DAO working group of 5 members is distributing a $5,000 USDC grant to a developer. They agree that any 3 of the 5 must approve before funds release — this prevents any single member from blocking or rushing the payment.
The setup
- Type: Escrow
- Amount: $5,000 USDC
- Parties: 5 wallet addresses (the working group members)
- Threshold: 3-of-5
- Recipient: The developer’s wallet
- Deadline: 60 days
How it plays out
- The group treasurer creates the agreement and deposits $5,000 USDC
- The developer completes the work and notifies the group
- Members review independently — when the 3rd member approves, the smart contract automatically releases $5,000 USDC to the developer
- The remaining 2 members don’t need to act — the threshold is met
Why this works
- Democratic — no single person controls the funds
- Efficient — you don’t need unanimous agreement, just the threshold
- Transparent — every approval is on-chain, visible to all members
- Automatic — release happens instantly when the threshold is met
Example 2: Co-founder terms
The situation
Three startup co-founders want to formalize their equity split agreement. No money is changing hands — they just need a permanent, tamper-proof record that all three agreed to the terms.
The setup
- Type: Terms-only
- Parties: 3 wallet addresses (the co-founders)
- Terms: Equity percentages, vesting schedules, roles and responsibilities
How it plays out
- One co-founder creates the terms-only agreement with the details
- Each co-founder reviews and signs — one wallet transaction each
- Once all 3 have signed, the agreement is complete — a permanent on-chain record
Why this works
- Immutable — nobody can change the terms after signing
- Timestamped — the blockchain records exactly when each person signed
- No middleman — no lawyer or notary needed for the record itself
- Always available — the record exists on-chain regardless of what happens to MyPact
Understanding N-of-M thresholds
The approval threshold is the number of approvals needed (N) out of the total parties (M):
| Threshold | Meaning | Best for |
|---|---|---|
| 1-of-1 | One person approves | Simple two-party deals |
| 2-of-3 | Any two out of three | Small committees, co-founder decisions |
| 3-of-5 | Any three out of five | Working groups, grant committees |
| 3-of-3 | All three must approve | When unanimous consent is required |
You set the threshold when creating the agreement. Once funded, it can’t be changed.
Ready to start? Follow our Pay Someone guide to create a multi-party agreement. Start with Test mode to practice with free tokens — invite your group members to try the full flow.