How does the Funding Process Work?

It starts with a small time fishermen wanting to expand his business, and ends with a floating city in the sea...

1. Party A approaches Stead, wanting funding to build a seastead / boat / fish farm / house / etc.

In this stage, the Stead company will reach out to, or receive contact from, a party that is interested in becoming an Operator. A discussion can happen on where the asset will be located, how it will be used, and whether it should receive funding from the Stead platform.

2. Stead negotiates with Party A / Operator, agrees on item to be built, and funding is approved

Once an agreement has been reached, either with Stead or with a future DAO, then the Operator’s request for funding can start the approval process

3. Stead or Operator create market listing on Stead.Builders, minimum monthly burn is calculated here

At this stage, either Stead, a governing DAO, or the Operator themselves will put the details of the property to be funded into the dapp, and a listing can be created. This is the sale that will be displayed on the marketplace page of Stead.Builders

4. Listing is approved by Stead.

After the information has been input into the dapp, the governing authority, in this case the Stead company, will approve the sale to be listed in the marketplace. Simultaneously an NFT will be generated, and designated to be given to the Operator once they have burned their designated amount of tokens. The NFT in this case is being used similarly to a title of ownership.

5. Sale is funded via USDT

At this stage, the sale is now listed on the marketplace, and anyone can access the free and permissionless dapp ecosystem in which Stead exists. People will be able to see the formal agreements between the Operator and Stead, and also see images of the asset to be purchased, or artwork of the asset to be constructed.

6. Everytime money is put in via stables, Stead tokens are given to the funder, funders are 'buying' Stead.

From here money will be raised to fund the construction or purchase of the property via the purchase of Stead tokens in exchange for a stable. Once the total requested amount has been raised in dollar valuation, the listing will close.

7. Sale is fully funded, Operator can withdraw funds, 5% fee granted to Stead platform

Once the listing has closed, the Operator can withdraw funds pending approval from Stead. For each withdrawal, the amount must be approved by Stead, and the central Stead company or future DAO will followup with the Operator to make sure they are spending the funds appropriately between withdrawals. At this stage a 5% fee for using the platform is also granted to the Stead company or DAO.

8. Operator is obligated to burn required minimum amount of Stead every 30 days

Now that the money has been raised, after a designated 'Grace Period' between 2 and 4 months, the Operator will be obligated to begin the process of purchasing Stead and burning them to meet their monthly obligation, this is the leasing cost of using the floating asset.

9. Operator buys Stead Tokens on DeFi every month, burns tokens accordingly

The burned tokens will decrease circulating supply and drive the value of the remaining tokens up. An initial LP farming pool will also be provided by Stead to maintain sufficient liquidity on Arbitrum. Operators can deposit USDT directly into a Smart Contract that will automatically swap it for Stead tokens and burn the tokens, this pumps buy volume directly into the existing Uniswap pool.

10. Funders who buy now, pay less for their Stead tokens, but minimum burn amount is denoted in USD

This means that if the price of Stead suddenly goes down relative to the dollar, Operators will be required to burn a larger amount of Stead, and if the price of Stead increases dramatically, they will be required to burn less. This will keep the price of Stead stable, in parity with an imagined version of the dollar, that increases every year by 11.35% compared with the real dollar. In addition, Stead tokens issued the following month will be 0.9% more expensive in dollar terms, meaning that the price floor on the tokens has been raised while the circulating supply will now start shrinking.