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Technical Documentation

Fair Squares Technical Documentation

This documentation provides a technical overview and architectural diagrams for the Fair Squares decentralized housing protocol. It explains how capital flows into the Housing Fund, how proposals are evaluated through governance, and how approved assets are converted and recorded on-chain.

What you'll find here

  • Architecture overview: High‑level system design and component interactions
  • Housing Fund: Deposits, withdrawals, reserves, and allocation
  • Governance process: How proposals are reviewed and approved
  • Asset conversion: Tokenization steps and DAO ownership transfer

System Architecture

Fair Squares operates as a decentralized protocol with several key components working together to enable transparent, community-owned affordable housing. The following diagrams illustrate the current implementation processes and data flows within our system.

Housing Fund Management

The Housing Fund is the entry point for user contributions. It handles deposits and withdrawals, tracks available balances, and earmarks reserves for proposals approved by governance. When reserves are set aside, they remain locked until execution or release by the protocol.

Housing Fund Operations

Fund management features
  • KYC verification: Users complete identity checks before funding
  • Flexible deposits: Users can deposit in EURO and withdraw when funds are not reserved
  • Governance‑controlled allocation: Spending requires community approval
  • Reserves: Approved amounts are held until project execution or release
See also: Governance and Asset conversion.
Governance Process
Governance ensures that asset proposals undergo a transparent, multi‑stakeholder review before any funds are committed. The process includes expert evaluation and community voting according to protocol rules.
Asset proposal governance flow
Key governance principles
  • Expert review: Proposals receive technical and legal assessment
  • Community voting: Token holders vote on eligible proposals
  • Transparency: Decisions are recorded on‑chain and auditable
  • Iteration: Proposals can be refined and resubmitted based on feedback
Asset Conversion & Tokenization
After a project is approved and funded, the asset conversion process transfers ownership to the DAO and mints tokens that represent contributors' fractional ownership.
Asset conversion & DAO ownership process
Tokenization process
  • Atomic transactions: Steps execute together or revert together
  • Proportional ownership: Tokens reflect each contributor's share
  • FS Asset Pool Token (FSAPT): Represents fractional ownership of the asset pool
  • On‑chain records: Each asset receives a unique AssetID as source of truth
  • No inflation: Exact token amounts are minted to preserve value
Prerequisites: approved proposal and available reserves in the Housing Fund.