Progress and submission

The taker checks in periodically for milestones agreed in the bounty terms, by publishing check-in Nostr events. If taker doesn't publish check-in events, maker can open a dispute to reclaim the funds. When the taker submits the completed work after checking in regularly, it's time for the payout.

Cooperative settlement

If the maker accepts the work, maker and taker co-sign escrow vTXO's Leaf A (happy path). The Ark Operator includes the spend in a batch settlement and the taker receives a new vTXO or can exit to on-chain Bitcoin.

Cancellation

Open bounties can be cancelled by the maker. However, if the bounty is already in progress, cancellation requires both parties. Without agreement, the protocol follows the dispute path.