Who Sets the Terms? Sponsorship Deal Governance
The Deal Creator Sets the Terms
Every sponsorship deal on Boss Tag is created by the entity seeking funding — the athlete, content creator, event organizer, or podcast host. They are the deal creator. The deal creator sets every parameter: revenue share percentage, token supply, price per token, funding deadline, perk structure, distribution frequency, and lock-up period. Boss Tag does not set, modify, or override these terms. The platform provides the infrastructure and smart contract framework; the deal creator defines what the deal looks like.
How Terms Are Published
When a deal creator builds their sponsorship listing, they complete a structured term sheet that covers five areas. First, financials: total funding target, token price, revenue share percentage, and which revenue streams are included (ad revenue, prize money, ticket sales, merchandise, licensing). Second, distribution: how often revenue is paid out (monthly, quarterly, per-event) and the minimum distribution threshold. Third, perks: what token holders receive beyond revenue share — content access, voting rights, merchandise, event passes. Fourth, duration: whether the deal covers a season, a calendar year, a single event, or is ongoing. Fifth, governance: what decisions token holders can vote on, the voting threshold required, and what happens if the deal underperforms.
Smart Contract Enforcement
Once a deal is published and funding begins, the terms are encoded into an ERC-3643 compliant smart contract on Polygon. This is the critical mechanism: the revenue share percentage, distribution schedule, and token supply become immutable on-chain. The deal creator cannot unilaterally change the revenue split from 10% to 5% after investors have committed. The smart contract automatically calculates each token holder's share and distributes funds on the specified schedule. If revenue comes in, it flows through the contract — no manual intervention, no discretion, no delays.
What Can Be Changed After Launch
Certain non-financial terms can be updated by the deal creator without a vote — things like adding additional perks, extending content access, or providing bonuses above the committed terms. However, any change that affects financials requires a token holder vote. Reducing the revenue share percentage, extending the lock-up period, changing the distribution frequency, or increasing the platform fee all require approval from holders representing at least 66% of the token supply. This threshold is enforced by the smart contract.
What Happens When a Deal Underperforms
If a team loses every game, a creator's channel stagnates, or an event sells fewer tickets than projected, the revenue share still works — it just produces less income. Token holders receive their contractual percentage of actual revenue, not projected revenue. The smart contract does not guarantee returns; it guarantees the percentage split. If total revenue is $10,000 and the share is 8%, holders receive $800 regardless of whether the projection was $50,000.
Dispute Resolution and Platform Role
Boss Tag serves as a neutral infrastructure provider, not a party to the deal. If a dispute arises, it is governed by the terms encoded in the smart contract and the operating agreement of the Series LLC. Boss Tag provides a dispute escalation process: on-platform mediation, then independent arbitration through a designated provider specified in the LLC agreement. The platform does not adjudicate disputes but ensures the infrastructure for resolution exists.
The Series LLC Layer
Every sponsorship deal is wrapped in a Series LLC (typically Wyoming). The deal creator is the managing member with operational authority, and token holders are passive members with economic and governance rights. This provides liability isolation, clear ownership rights, and regulatory compliance. The operating agreement mirrors the smart contract terms, creating dual enforcement — legal and technical.
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