Version: 1.0
Date: February 2025
Prepared by: Brookschurch Crypto Fund
1. Abstract
This document outlines the NFT-based staking and profit distribution system for the Brookschurch Crypto Fund. By leveraging Ethereum-based NFTs, this system enables passive earnings for NFT holders through automated staking and USDC profit distribution.
The model allows users to:
• Mint an NFT, which automatically gets staked.
• Earn fund profits proportional to NFT ownership.
• Claim profits anytime or let them compound.
• Unstake the NFT anytime, forfeiting future earnings.
• Monitor fund performance via a transparent dashboard.
This approach blends decentralized finance (DeFi) with NFTs, offering a secure, automated, and fair profit-sharing system.
2. Introduction
2.1 The Problem
Traditional investment funds require extensive paperwork, centralized control, and trust in intermediaries. Investors often have limited transparency, slow profit distribution, and high barriers to entry.
2.2 The Solution
Brookschurch Crypto Fund introduces an NFT-based staking model that automates profit-sharing through smart contracts. NFT holders gain direct, on-chain access to fund profits, ensuring:
• Immediate ownership verification
• Decentralized profit distribution
• Flexible, real-time profit claims
By eliminating middlemen and slow bureaucratic processes, NFT staking allows users to participate in fund profits with full transparency and control.
3. The NFT Staking Model
3.1 Automatic Staking
• NFTs are auto-staked upon minting, requiring no user action.
• Users receive proportional profits based on the number of NFTs held.
• Staking is managed entirely on-chain for full transparency.
3.2 Unstaking Process
• Users may unstake their NFT anytime.
• Unstaking forfeits future earnings, but the NFT remains tradable.
• Once unstaked, previously accumulated profits remain available for withdrawal.
3.3 Passive Income Model
• Profits accumulate continuously as long as the NFT remains staked.
• Users can claim their earnings anytime (not just quarterly).
• Unclaimed profits remain compounding in the fund for future withdrawal.
4. Profit Distribution Mechanism
4.1 How Earnings Are Calculated
• Smart contracts calculate profit share per NFT based on fund performance.
• Earnings are distributed in USDC (ERC-20 token).
• Profit per NFT = (Fund Profits / Total Staked NFTs).
4.2 Claiming Profits
• Users can withdraw profits anytime or let them accumulate.
• Withdrawals require no approvals, ensuring instant access.
• Profit-sharing is fully automated, tamper-proof, and transparent.
4.3 Admin Profit Controls
• Admins can adjust staking parameters and manage profit distributions.
• A multi-signature system ensures no single entity controls fund withdrawals.
5. Smart Contract Architecture
5.1 Staking Smart Contract (ERC-721)
• Automatically stakes NFTs upon purchase.
• Manages staking status (staked/unstaked).
• Ensures eligibility for profit-sharing.
5.2 Profit Distribution Smart Contract (ERC-20, USDC Payouts)
• Tracks staked NFT balances.
• Calculates and distributes profits proportionally.
• Enables on-demand profit withdrawals.
• Implements admin access controls.
5.3 Security & Auditing Features
• Multi-signature admin wallets for security.
• Reentrancy protection to prevent smart contract exploits.
• On-chain governance features for parameter adjustments.
6. User & Admin Dashboards
6.1 User Dashboard
• View NFT holdings and staking status.
• Monitor fund performance and personal earnings.
• Claim profits anytime or allow them to grow.
• Unstake NFTs if desired.
6.2 Admin Dashboard
• Manage staking parameters and eligibility rules.
• Adjust profit distribution settings.
• Monitor fund performance, user activity, and claim history.
• Enable/disable profit withdrawals (if needed for security updates).
7. Public Transparency Features
7.1 Live Fund Performance Ticker
• Displays real-time fund performance metrics on the main website.
• Pulls data directly from smart contracts for accuracy.
• Ensures full transparency for NFT holders and the public.
7.2 On-Chain Verification
• Users can verify fund profits and earnings calculations on Etherscan.
• Open-source contract logic ensures tamper-proof transparency.
8. Tokenomics & Fees
8.1 Revenue Model
• NFT Minting Fees – Initial fund entry via NFT purchases.
• Secondary Sales Royalties – A percentage of NFT resales funds the platform.
• Fund Performance Fees – A small % of profits may be allocated for maintenance.
8.2 Gas Optimization
• Batch transactions minimize gas fees for staking and profit claims.
• L2 & Rollups compatibility (Polygon, Arbitrum, etc.) planned for future updates.
9. Security & Compliance
9.1 Smart Contract Audits
• Third-party security audits before deployment.
• Bug bounty program to identify vulnerabilities.
9.2 Risk Management
• Multi-signature admin controls for fund withdrawals.
• Anti-bot mechanisms for NFT minting and staking.
• User protection measures (withdrawal limits, fraud detection).
10. Roadmap
Phase 1: Smart Contract Development
• Develop staking contract & profit distribution contract.
• Implement NFT minting & auto-staking.
Phase 2: Web3 & Dashboard Integration
• Build user & admin dashboards.
• Integrate MetaMask, WalletConnect, and Coinbase Wallet.
Phase 3: Security Testing & Audit
• Smart contract audit by third-party security firm.
• Testnet deployment & bug fixes.
Phase 4: Mainnet Launch & Marketing
• Deploy on Ethereum Mainnet.
• Onboard early adopters & NFT holders.
• Launch public performance tracker for transparency.
11. Conclusion
The Brookschurch Crypto Fund NFT Staking System provides a decentralized, automated, and transparent way for NFT holders to participate in crypto fund profits.