The way it "used to work" was that Brave gave users BAT for using the Browser and Brave Payments (now Brave Rewards). The user could then visit a site/channel,

The way it "used to work" was that Brave gave users BAT for using the Browser and Brave Payments (now Brave Rewards). The user could then visit a site/channel, and Brave would communicate if the property was verified or not (e.g. a verified property had a check-mark, and an unverified property did not). If you tipped a verified property, the BAT (as gift from Brave) would go to the creator's associated wallet. If the property was not verified, the BAT would go into a settlement wallet, awaiting the creator's registration. Again, this was Brave's BAT effectively being earmarked for a creator who had not yet verified. The feedback at the time from the community was that the UI/UX was confusing; indeed it was. We quickly modified the model, and today it is substantially better as a result. Unverified properties are now as explicitly identified as verified ones, and tips to the former are held on-device for up to 90 days.