How It Works

When we say the rules can't be changed without a member vote, we mean it — literally. Here's why.

The problem with promises

Promises can be broken. Our code can't.

Most platforms specify their rules in documents that can be rewritten without platform user input. A cooperative that runs on ordinary software is somewhat protected by its bylaws — but bylaws require lawyers and courts to enforce, and a motivated acquirer or board can find ways to change or subvert them without you knowing until it's too late.

CardPact runs its most critical rules as software that executes automatically. The fee rate goes into the software. The surplus distribution formula goes into the software. Changing either requires a member vote — not a backroom board decision, and not an unexpected terms-of-service update.

"It's like a vending machine. You put money in, and candy comes out. The vending machine is a physical device that executes the rules of agreement. By digitalizing the concept, cryptography makes these contracts far more secure and powerful." — Vitalik Buterin, Co-founder of Ethereum

If you've heard the term smart contract, the above "vending machine" concept is what that refers to: code that enforces inviolable rules without needing to trust a third party. The CardPact platform is sort of like that vending machine. You interact with it, and it autonomously follows its programming to execute some actions.

What this guarantees

What the code protects

Fees can't be raised in secret. Any change to the fee rate runs through a member vote, transparently and with some waiting period, before it takes effect.
The platform can't be sold without your consent. An acquirer can't buy CardPact out from under you, because any sale requires a membership vote.
Dividends go where the publicly visible formula says they go. Surplus distribution follows the rules in the code, not an opaque shareholder decision made at year-end.

Honesty about limits

What it doesn't protect

Not everything is automated... yet. Seller verification and dispute resolution involve humans — those processes are still governed by the cooperative's membership, but they're not as "trustless" as the financial rules.

We'll always be clear about which parts of the platform are software-enforced and which rely on governance. You should know exactly what you're trusting, and why.