[Feature]: On-Chain Dispute Resolution and Settlement Verification

[akargi]

Problem / motivation

Failed trades, execution errors, and disagreements between parties require fair, transparent resolution. Without on-chain dispute mechanisms, the platform relies on manual arbitration, reducing trust and scalability for institutional users.

Proposed solution

Implement a decentralized dispute resolution system:

1. Dispute Initiation Module:

   • Filed claims with evidence (transaction hash, order details, prices)
   • Automated validation of claim legitimacy
   • Dispute categorization (settlement error, execution failure, slippage)

2. Evidence Collection and Verification:

   • On-chain settlement verification via Stellar
   • Price feed snapshots at transaction time
   • Event log extraction from blockchain
   • Cryptographic proof of transaction state

3. Arbitration Mechanism:

   • Jury pool selection from community validators
   • Weighted voting by reputation/stake
   • Jury incentives (tokens for participation)
   • Appeal processes with higher jury tiers

4. Automated Resolution Logic:

   • Clear resolution rules for common dispute types
   • Escrow mechanisms for settlement funds
   • Automatic compensation calculation

5. Settlement Execution:

   • On-chain settlement contracts
   • Atomic fund transfers post-resolution
   • Partial settlement support
   • Appeal bond mechanisms

6. Dispute Analytics:

   • Track dispute trends
   • Identify systemic issues
   • Measure arbitrator effectiveness
   • Appeal rate monitoring

7. Audit Trail and Transparency:

   • Complete dispute history immutably recorded
   • Public resolution data (anonymized)
   • Reasoning transparency for decisions

Acceptance Criteria:

• Resolve 95%+ of disputes within 7 days
• Maintain <5% appeal rate
• Support multiple dispute types
• Maintain 99%+ settlement execution success

Related area

Dispute resolution

Alternatives considered

1. Centralized arbitration - contradicts decentralization principles
2. No dispute mechanism - unacceptable for institutional adoption

Contribution

• I am willing to help implement this feature.

[Peculiarr7]

Hi! I’m a full-stack developer with a strong blockchain background, and I’m confident I can resolve this issue quickly and effectively. I’ll deliver a clean, reliable solution with immediate attention to detail, ensuring it’s completed as soon as possible. Please assign it to me—I’m ready to get started right away.

[Viccodes11]

I am confident that I can implement this having worked on something similar in the past

[estebanbq07]

I’d like to take ownership of this issue and help implement the decentralized dispute resolution system. I understand that this requires more than just a dispute form: it involves claim validation, on-chain evidence verification, arbitration and jury selection, weighted voting, appeals, automated resolution and settlement execution, as well as a transparent audit trail and dispute analytics. I’d approach the implementation incrementally, starting with the core dispute lifecycle and evidence verification, then building the arbitration, resolution, settlement, and appeal mechanisms around it. I’ll also make sure the implementation is covered by tests and that the design remains consistent with the platform’s decentralization and on-chain settlement principles.

[grantfox-oss]

🦊 GrantFox — @estebanbq07 has been assigned to this issue as part of the Third Campaign campaign!

Next steps:

1. Open a Pull Request referencing this issue (e.g., Closes #41)
2. Your PR will be reviewed by the Chulilee maintainers

Good luck! Track your progress on GrantFox.