One of the most common questions we get is: what happens to the money once a DARE is funded?
The answer is escrow. It is the foundation for both Skill-Based competitions and Task-Based rewards.
What is escrow?
Escrow is a locked holding state for DARE funds. In Skill-Based DAREs, both participants' stakes are locked. In Task-Based DAREs, only the Darer's reward is locked because the Performer does not stake money.
Escrow is released only through settlement, refund, or void rules.
The escrow lifecycle on DARE
1. DARE created
The Darer writes the constitution, chooses Skill-Based or Task-Based, sets the stake or reward, and selects the resolution path.
2. Escrow funds
For Skill-Based DAREs, the Darer's stake locks at creation and the Challenger's matching stake locks on accept. For Task-Based DAREs, the Darer's reward locks at creation and the Performer accepts or claims the task without staking money.
3. Court or proof flow starts
While the DARE is live, escrow is frozen. Participants follow the constitution: live answers, witnessed performance, or evidence submission.
4. Proof is captured
Answer Key DAREs use committed answers. Witnessed DAREs use live presence and eligible witness signals. Evidence DAREs use approved proof such as clips, photos, screen recordings, metadata, and content hashes where supported.
5. Settlement
If all required parties accept the result, settlement can proceed. If there is disagreement, a blinded jury or admin review uses the constitution and proof packet. Skill-Based winners receive the eligible escrow pool. Task-Based performers receive the eligible reward after valid completion. Refunds follow the constitution and platform policy.
What protects escrow?
- Server-side transactions: escrow locks and releases happen through controlled settlement paths.
- Immutable ledger: wallet transactions are append-only.
- No unilateral staff release: DARE staff cannot redirect escrow outside settlement, refund, void, or fraud-review policy.
- Proof packet review: disputed outcomes use the constitution, evidence, answer events, witness signals, and participant claims.
Forfeit rules
If a participant fails to submit required proof before the deadline, abandons the DARE, or breaks the constitution, settlement follows the DARE's forfeit, refund, or review rules. Skill-Based forfeits can award the opponent. Task-Based failures can refund the Darer or pay the Performer when valid completion is already proven.
The result
Before escrow locks, everyone can see what is funded, what must be proven, and how settlement happens. That is the trust layer DARE provides.