## 3 System Design Overview
### Token-Based Incentives
#### 3.5.1 Reward Tokens  
SparkCoins serve as the main monetary incentive for experts. These tokens hold tangible value and can be used for transactions within the platform or exchanged externally (e.g., converted to stablecoins using an exchange). The reward token system employs blockchain-based escrow accounts, smart contracts, and tokenomics principles to ensure secure and dispute-resilient transactions.  
Innovators submit their proposals through the platform, specifying the mentorship requirements. As part of this submission process, they lock a predetermined amount of SparkCoins into a blockchain-based escrow account. This locking mechanism pro vides a guarantee of payment for the expert's services, creating trust and accountability between participants.  
Upon mutual agreement, the expert commences the mentoring process. During this period, the following is true:  
* The locked SparkCoins remain in escrow, accessible only under the conditions explicitly defined within the associated smart contract.
* The release of tokens to the expert is contingent upon one of the following:  
1. **Approval by the innovator (manual release):** The innovator manually triggers the release of funds upon satisfactory completion of the mentorship process.
2. **Automatic release:** Tokens are automatically disbursed to the expert upon the conclusion of the collaboration period, provided no disputes have been raised.  
In the event of a dispute, the platform retains the locked SparkCoins in escrow until the conflict is resolved. Although dispute resolution mechanisms are beyond the scope of the current implementation, future versions could integrate transparent processes to address such issues effectively.  
SparkCoins are implemented as wrapped USDT tokens on the platform's permissioned blockchain. The process of obtaining these coins involves the following steps:  
1. A smart contract deployed on the Ethereum blockchain locks the specified amount of USDT when a user initiates a swap. The user sends the amount of USDT to this contract.
2. Upon successfully locking the tokens, the smart contract emits an event that records the amount of USDT locked and specifies the recipient address on the permissioned blockchain.
3. An off-chain service, referred to as the bridge component, monitors the Ethereum network for these lock events. The service validates the event to ensure the correct amount of USDT is locked and that the transaction is legitimate.
4. Once the lock event is validated, the bridge component transmits a message to the permissioned blockchain, relaying the details of the locked USDT.
5. A corresponding smart contract on the permissioned blockchain mints an equivalent amount of SparkCoins upon receiving the validated message from the bridge component. This contract implements the ERC20 standard and manages the SparkCoins, facilitating their minting or transfer based on user actions, such as compensating experts for completed services.  
This mechanism ensures the secure and transparent exchange of value between the Ethereum network and the platform's permissioned blockchain, providing liquidity and maintaining a 1:1 backing ratio between USDT and SparkCoins.