What is a Milestone?
Understand how work is divided into smaller parts with clear payments and deadlines.
What is a Milestone?
A milestone is a clearly defined stage in a project that marks the completion of a significant task or deliverable. In business and project management, milestones help break down complex work into manageable parts, each with its own deadline and payment.
Why Use Milestones?
Milestones provide structure and clarity for both clients and service providers. By agreeing on milestones upfront, everyone knows what is expected, when it is due, and how much will be paid. This reduces misunderstandings and helps keep projects on track.
On w3.company, milestones are enforced by smart contracts. Payments are held in escrow and only released when a milestone is completed and approved. This protects both parties and ensures fair compensation for work delivered.
How to Set Effective Milestones
To set effective milestones, define clear deliverables, deadlines, and payment amounts for each stage. Communicate expectations and review progress regularly. If a milestone is missed or disputed, the smart contract can trigger a review by a neutral governor.
Example: Web Design Project
Suppose you hire a designer to build a website. You might set milestones for the wireframe, homepage, and final launch. Each milestone is paid separately, and the project only moves forward when both sides are satisfied.
- Milestone 1: Wireframe approved
- Milestone 2: Homepage completed
- Milestone 3: Final site launch