Work Package #3

Name

WP3 — Participation Signalling & Capital Distribution

High-Level Description

This work package implements the participation signalling layer — the mechanism by which hub-networks, hubs, and teams communicate their activity levels and relative contributions — and the capital distribution system that translates those signals into ADA transfers to team wallets. Participation signals are the internal currency of the system: they weight how pooled capital (from RCP sales) is allocated across teams within each hub, and across hubs within the network. This work package covers the on-chain and off-chain logic for signal aggregation, weight computation, and the automated transfer mechanism to team-controlled wallets on Cardano.

(max 10,000 characters)

Core Objectives

• Implement the participation signal ingestion and aggregation pipeline at team, hub, and hub-network levels.
• Implement the weighting and normalisation logic (w_h,i) that determines each team’s share of distributed capital.
• Build the capital distribution mechanism that executes ADA transfers to team wallets based on computed weights.
• Ensure signal data is verifiable and traceable on-chain or via cryptographic commitment to off-chain records.
• Integrate with the gateway (WP2) so that distributed capital is correctly drawn from the RCP funding pool.
• Provide hub-network administrators with visibility into signal states and pending distributions.

(max 10,000 characters)

Expected Value — Why does this matter to Cardano?

Participation signalling is the mechanism that keeps capital allocation aligned with real activity, rather than fixed schedules or top-down decisions. It embeds community-originated value assessment into the financial layer, ensuring capital flows to teams that are actively contributing. For Cardano, this demonstrates programmable, signal-driven treasury distribution at ecosystem scale — a capability with broad applicability beyond this protocol.

(max 4,000 characters)

Success Metrics

• Participation signals from at least 3 simulated teams in 2 simulated hubs correctly aggregated and weighted in testnet environment.
• Capital distribution transactions successfully executed to team wallets on testnet, with amounts matching computed weights.
• Full audit trail of signal inputs to distribution outputs available and verifiable.
• Distribution mechanism integrated with WP2 gateway funding pool without double-spend or accounting errors.

(max 4,000 characters)

Initiative Type

[x] New initiative

Primary Nature of Work

[x] Technical

Milestones

Milestone #1

Milestone #2

Milestone #3

Budget Breakdown — Work Package #3

Supporting Materials

[To be added]