Blockchain Staking Pool Smart Contract Automation
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Solution Overview
Problem
Conventional crowdfunding protocols lack transparency, security, and efficiency, often involving high costs and undesirable platform fees, with rewards not including producer credit and principal token contributions being non-returnable.
Innovation Solution
A blockchain-based staking pool system that allows users to pledge cryptocurrency for a set period, generating annual percentage yield (APY) which funds smart projects, with smart contracts ensuring secure and transparent transactions, and the option to receive rewards without losing principal tokens.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional crowdfunding protocols are used, then fundraising can be performed, but transparency and security are lacking and high platform fees are charged
Solution Approach 1:
The patent introduces a blockchain-based staking pool system as an intermediary between funders and projects. Smart contracts deployed on the blockchain serve as automated mediators that transparently manage funds, calculate returns, and execute transactions without requiring traditional crowdfunding platforms, thereby eliminating platform fees while enhancing transparency and security through cryptographic verification and distributed ledger technology.
Solution Approach 2:
The system enables self-service through autonomous smart contracts that automatically handle fund management, APY calculation, distribution, and trigger condition monitoring without human intervention or platform mediation. Participants can independently verify transactions on the blockchain, manage their own staking positions, and receive automated payouts, eliminating the need for costly platform services while maintaining high transparency and security standards.
2Use of energy by moving object
If cryptocurrency is pledged for a set period, then APY can be earned, but liquidity is reduced
Solution Approach 1:
The patent implements dynamic liquidity mechanisms where the staking period and lock-up conditions are not fixed but can be adjusted based on trigger conditions monitored by smart contracts. These trigger conditions may include project milestones, market conditions, or time-based events that, when satisfied, automatically unlock funds or allow partial withdrawals. This dynamic approach enables participants to earn APY while maintaining flexibility and potential access to liquidity when predetermined conditions are met, rather than being locked for rigid fixed periods.
3Reliability
If smart contracts are deployed on blockchain, then transaction security is improved, but deployment and maintenance costs increase
Solution Approach 1:
The patent designs universal smart contracts that perform multiple functions within a single deployment: managing staking positions, calculating and distributing APY, monitoring trigger conditions, handling withdrawals, and verifying project milestones. This multi-functional approach consolidates what would otherwise require multiple separate contracts or systems, reducing overall complexity while maintaining high security standards through comprehensive automated logic embedded in the blockchain-deployed contracts.
Data Source
AI summary
In one embodiment, a computer-implemented method includes receiving, via a user interface, a selection of a smart project to join, wherein the smart project is controlled via a smart contract deployed on a blockchain. The method includes receiving an amount of cryptocurrency to pledge to the smart project for a set period of time based on the smart contract, transmitting, from a first digital wallet, the amount of cryptocurrency to an address associated with the smart project at a first block on the blockchain, receiving, based on the amount of cryptocurrency, an annual percentage yield, and transmitting, based on the smart contract, the annual percentage yield to a second block associated with a smart collateral digital wallet on the blockchain. The method includes determining when a trigger condition occurs, and responsive to the trigger condition occurring, returning the cryptocurrency to the first digital wallet.