# Algoosh - non-custodial, escrow-based commerce protocol

**URL:** <https://forum.algorand.co/t/algoosh-non-custodial-escrow-based-commerce-protocol/15169>\
**Category:** xGov Proposals\
**Created:** [February 14, 2026, 10:15pm UTC](https://forum.algorand.co/t/algoosh-non-custodial-escrow-based-commerce-protocol/15169 "2026-02-14T22:15:42Z")\
**Posts on this page:** 1\
**Showing post:** 12

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**Author:** ![foxzard](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/foxzard/32/3947_2.png) [@foxzard](https://forum.algorand.co/u/foxzard)\
**Post date:** [February 26, 2026, 12:17pm UTC](https://forum.algorand.co/t/algoosh-non-custodial-escrow-based-commerce-protocol/15169/12 "2026-02-26T12:17:54Z")

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Hi Urtho,  
I just added some formatting to make it look better, it is not AI.

**Are there more pros to this solution compared to Shopify?**

Algoosh advantage is in **how commerce is executed in the real world** , especially for offline-first merchants.

**Where Algoosh is stronger:**

- **Very low entry barrier for offline sellers** : no storefront build-out required; sellers can operate from an offline catalog / promo materials and still accept digital orders.
- **Offline-to-online conversion** : QR-driven “offline shopping cart” makes it easy to turn flyers, posters, and in-store promos into orders.
- **Transparent settlement rules** : instead of platform-controlled holds, the flow is explicit - funds sit in escrow until the buyer confirms delivery.

**Where Shopify is stronger (and our current tradeoff):**

- **Shopify supports mainstream payments out of the box.** Algoosh currently requires both buyer and seller to use **Algorand + stablecoins**.

Many merchants selling on marketplaces are _already used to delayed or restricted payouts_, including:

- frozen balances / rolling reserves,
- multi-week settlement cycles,
- sudden account restrictions,
- chargeback losses,
- withdrawal fees.

In contrast, Algoosh offers a **clear shopping protocol** : funds are escrowed until delivery is confirmed - not held by a platform behind opaque risk rules.

* * *

## Are there any real merchants who think this delayed payment is something they can live with?

Our primary target is **small merchants and local offline shops** that want to add delivery to their promo catalogs and offline advertising.  
Many of them already operate on **cash-on-delivery** for local delivery - meaning “payment on delivery” is a familiar model. Escrow behaves similarly, except it’s digital and rule-based.

* * *

## Have you considered split payments (e.g., send delivery costs immediately)?

We plan to add more delivery options for sellers. We’re **not implementing split payments** , because partial direct payouts are easy to abuse (e.g., shipping charged but no real fulfillment).  
In our model, **escrow is mandatory** to preserve buyer trust and keep the protocol enforceable.

* * *

## Returns, post-delivery cancellations, refunds

What we have today:

- The buyer can **request a refund** , but it is handled as a **direct negotiation with the seller**.
- The protocol is optimized for **local delivery use cases** (food, groceries, small local orders), where buyers are expected to confirm delivery and release escrow promptly.
- In the current version, the seller can **refund 100%** of the payment back to the buyer.

In the roadmap:

- A more advanced **arbitration / dispute resolution** mechanism to handle contested deliveries, returns, and edge cases.
- independent third-party insurance + arbitration

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_[View the full topic](https://forum.algorand.co/t/algoosh-non-custodial-escrow-based-commerce-protocol/15169)._