> For the complete documentation index, see [llms.txt](https://blueprint.builtbydao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blueprint.builtbydao.com/invest/proof-gate.md).

# The Proof Gate

{% hint style="warning" %}
Round 1 only unlocks Round 2 if the lead hub proves the single claim the whole model rests on — in measurable dollars, on a real address, against a real comparable.
{% endhint %}

## The three-metric scorecard

| Metric (vs a conventional rehab) |   Modeled  | Target |        |
| -------------------------------- | :--------: | :----: | :----: |
| % below market build cost        |  **14.5%** |  ≥ 12% | ✅ PASS |
| $ saved per build                | **$46.5K** | ≥ $40K | ✅ PASS |
| Non-cash share of cost           |  **26.9%** |  ≥ 26% | ✅ PASS |

For context, BBD also comes in **\~47% below new construction** — the cities' own figures. The cost advantage is real but modest on a rehab-vs-rehab basis; the bigger levers are cash-off-the-ledger + stacked subsidy + community ownership.

## The bet

> **One hub. One scorecard. Audited dollars.**

Round 1 doesn't fund a thesis — it funds the proof. Stand up one Foundry hub, build the first homes with trained member labor + recovered materials, and demonstrate that cost reduction + stacked subsidy = community-owned development. Clear the gate and the next raise is de-risked; miss it and capital learns cheaply in **one hub, not five.**

## What Year One must prove (falsifiable)

1. **Recruitment works** — a committed co-lead cohort forms.
2. **Capital + subsidy assemble** at the gate.
3. **A hub stands up** — 7 zones commissioned, first material throughput.
4. **The labor engine turns** — contributors trained, EQTBLT logged for real work.
5. **Cost reduction is measurable** — the three-metric scorecard on a first build.
6. **The token holds** — in-network redemption dominates; cash-out stays near \~10%.

{% hint style="success" %}
Hit these and the model is de-risked for parallel scale. Miss them and the lead/co-lead design means you learn cheaply before replicating.
{% endhint %}

{% content-ref url="/pages/koICf9531jjlIT5PMEYS" %}
[The Financial Model](/invest/financial-model.md)
{% endcontent-ref %}


---

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