Dividend Distribution

Share your film's revenue with token holders through RedCarpetHQ's dividend system.

Overview

The DividendDistributor contract allows producers to distribute USDC to token holders based on blockchain snapshots.

Key Features

  • Snapshot-Based: Fair distribution using ERC20 snapshots
  • Multi-Round: Create multiple dividend rounds over time
  • Pro-Rata: Each holder receives proportional to their balance
  • Claim-Based: Holders claim their dividends (gas-efficient)
  • Transparent: All distributions on-chain and verifiable

    • How Dividends Work

    Distribution Flow

    ``
    ┌─────────────────────────────────────────┐
    │ Step 1: Producer Creates Round │
    │ - Deposits USDC to contract │
    │ - Specifies total amount │
    │ - Round created (inactive) │
    └─────────────┬───────────────────────────┘
    │
    ▼
    ┌─────────────────────────────────────────┐
    │ Step 2: Take Snapshot │
    │ - Captures all token holders │
    │ - Records balances at block │
    │ - Includes vault depositors │
    └─────────────┬───────────────────────────┘
    │
    ▼
    ┌─────────────────────────────────────────┐
    │ Step 3: Activate Round │
    │ - Snapshot ID recorded │
    │ - Claims enabled │
    │ - Holders notified │
    └─────────────┬───────────────────────────┘
    │
    ▼
    ┌─────────────────────────────────────────┐
    │ Step 4: Holders Claim │
    │ - Calculate share │
    │ - Claim USDC │
    │ - Receive payment │
    └─────────────────────────────────────────┘
    `

    Calculation Formula

    `
    Holder Dividend = (Holder Balance / Total Supply) × Total Dividend

    Example:
    Total Supply: 1,000,000 tokens
    Holder Balance: 50,000 tokens (5%)
    Total Dividend: $10,000

    Holder Dividend = (50,000 / 1,000,000) × $10,000
    = 0.05 × $10,000
    = $500
    `

    Creating Dividend Rounds

    Prerequisites

    Authorization:

  • Must be campaign creator

  • Or whitelisted distributor

  • Graduated token only

    • Funds:

  • USDC for distribution

  • USDC for gas fees

  • Approve DividendDistributor contract

    • Step-by-Step Process

    1. Prepare USDC

    `
    Amount to distribute: $10,000 USDC
    Gas buffer: ~$10 USDC
    Total needed: $10,010 USDC

    Approve DividendDistributor:

  • Contract address: [from platform]

  • Amount: $10,000 USDC

    • `

    2. Create Round

    Via Platform:
    1. Navigate to campaign management
    2. Click "Dividend" tab
    3. Click "Create New Round"
    4. Enter amount: 10,000 USDC
    5. Review details
    6. Confirm transaction
    7. Wait for confirmation

    Transaction:
    `
    Function: createDividendRound(tokenAddress, amount)
    Gas: ~150,000 gas
    Result: Round ID assigned
    Status: Inactive (awaiting snapshot)
    `

    3. Take Snapshot

    Timing Considerations:

  • Announce snapshot in advance

  • Give holders time to prepare

  • Consider market conditions

  • Avoid surprise snapshots

    • Execute Snapshot:
    1. Campaign management dashboard
    2. Select dividend round
    3. Click "Take Snapshot"
    4. Confirm transaction
    5. Snapshot ID recorded

    What's Captured:

  • All token holder addresses

  • Balance of each holder

  • Total supply at that block

  • Timestamp

  • Block number

    • Includes:

  • Direct token holders

  • Vault depositors (via snapshot)

  • All addresses with balance > 0

    • 4. Activate Round

    After Snapshot:
    1. Review snapshot data
    2. Verify total supply
    3. Click "Activate Round"
    4. Confirm transaction
    5. Claims enabled

    Activation Effects:

  • Holders can claim

  • Snapshot locked

  • Distribution begins

  • Notifications sent

    • Round Information

    Stored Data:
    `
    Round ID: 1
    Token: 0x123...
    Total Amount: 10,000 USDC
    Snapshot ID: 42
    Snapshot Time: 2025-02-15 12:00:00 UTC
    Total Supply: 1,000,000 tokens
    Status: Active
    Total Claimed: 2,500 USDC (25%)
    Remaining: 7,500 USDC (75%)
    `

    Claiming Dividends

    For Token Holders

    Check Eligibility

    Requirements:

  • Held tokens at snapshot time

  • Balance > 0

  • Round is active

  • Haven't claimed yet

    • Check Your Share:
    `
    Your Balance: 50,000 tokens
    Total Supply: 1,000,000 tokens
    Your Share: 5%

    Total Dividend: $10,000
    Your Dividend: $500
    `

    Claim Process

    Via Platform:
    1. Visit campaign page
    2. Navigate to "Dividends" section
    3. See available rounds
    4. Click "Claim" on eligible round
    5. Review amount
    6. Confirm transaction
    7. Receive USDC

    Transaction:
    `
    Function: claimDividend(tokenAddress, roundId)
    Gas: ~80,000 gas
    Result: USDC transferred to wallet
    Status: Claimed (cannot claim again)
    `

    Claim Timing

    No Deadline:

  • Claim anytime after activation

  • No expiration

  • Funds held indefinitely

  • Your USDC is safe

    • Best Practices:

  • Claim when gas is low

  • Batch with other transactions

  • No rush if gas is high

    • Claim Status

    Check If Claimed:
    `
    Round ID: 1
    Your Address: 0x456...
    Status: Claimed ✅
    Amount Received: $500
    Claim Time: 2025-02-16 08:30:00 UTC
    Transaction: 0x789...
    `

    If Not Claimed:
    `
    Round ID: 1
    Your Address: 0x456...
    Status: Unclaimed ⏳
    Amount Available: $500
    Action: Click "Claim" button
    `

    Multiple Rounds

    Creating Multiple Distributions

    Use Cases:

  • Quarterly revenue sharing

  • Milestone payments

  • Box office distributions

  • Streaming revenue

  • Merchandise sales

    • Example Timeline:
    `
    Round 1: Initial Box Office (Month 1)

  • $10,000 distributed

    • Round 2: Streaming Rights (Month 6)

  • $25,000 distributed

    • Round 3: International Sales (Month 12)

  • $15,000 distributed

    • Round 4: Merchandise (Month 18)

  • $5,000 distributed

    • Total: $55,000 distributed over 18 months
    `

    Round Management

    Tracking:

  • Round IDs sequential (1, 2, 3...)

  • Each round independent

  • Separate snapshots

  • Individual claim status

    • Historical Data:
    `
    Token: FRONTIER
    Total Rounds: 4
    Total Distributed: $55,000
    Total Claimed: $52,000 (94.5%)
    Unclaimed: $3,000 (5.5%)
    Unique Claimers: 847 addresses
    `

    Advanced Features

    Whitelisted Distributors

    Purpose:

  • Delegate distribution rights

  • Production company

  • Financial manager

  • Trusted partner

    • Setup:
    1. Creator calls     whitelistDistributor()
    2. Specifies address
    3. Confirms transaction
    4. Address can create rounds

    Use Case:
    `
    Producer: 0x111...
    Production Company: 0x222...
    Financial Manager: 0x333...

    Whitelist both:

  • Production company handles distributions

  • Financial manager creates rounds

  • Producer maintains oversight

    • `

    Emergency Withdrawal

    When Needed:

  • Round created by mistake

  • Wrong amount deposited

  • Need to cancel distribution

  • Emergency situations

    • Requirements:

  • Must be creator

  • Round not yet activated

  • No claims processed

    • Process:
    1. Contact support
    2. Verify ownership
    3. Emergency withdrawal function
    4. USDC returned to creator

    Snapshot Strategies

    Announced Snapshots:
    `
    Announcement: "Snapshot in 7 days"
    Benefits:

  • Holders can prepare

  • Buy tokens before snapshot

  • Fair warning

  • Transparent process

    • Risks:

  • Price manipulation

  • Temporary buying pressure

  • Snapshot gaming

    • `

    Surprise Snapshots:
    `
    Announcement: "Snapshot taken yesterday"
    Benefits:

  • No manipulation

  • True holder distribution

  • Fair to long-term holders

    • Risks:

  • Some holders miss out

  • Less transparent

  • Potential complaints

    • `

    Best Practice: Hybrid
    `
    Announcement: "Snapshot within next 30 days"

  • Gives general timeframe

  • Reduces manipulation

  • Fair warning

  • Maintains flexibility

    • ``

    Tax Considerations

    For Producers

    Distributions as Expenses:

  • May be deductible

  • Consult tax advisor

  • Keep records

  • Document purpose

    • Reporting:

  • Track all distributions

  • Recipient addresses

  • Amounts and dates

  • Tax forms (if required)

    • For Token Holders

    Dividend Income:

  • May be taxable

  • Depends on jurisdiction

  • Consult tax advisor

  • Keep claim records

    • Record Keeping:

  • Claim transactions

  • Amounts received

  • Dates and times

  • Tax documentation

    • Best Practices

    For Producers

    Planning:

  • ✅ Announce distributions in advance

  • ✅ Set clear expectations

  • ✅ Communicate revenue sources

  • ✅ Be transparent about amounts

    • Timing:

  • ✅ Regular schedule (if possible)

  • ✅ After revenue received

  • ✅ Consider market conditions

  • ✅ Coordinate with updates

    • Communication:

  • ✅ Explain distribution source

  • ✅ Share financial updates

  • ✅ Thank supporters

  • ✅ Build community trust

    • Legal:

  • ✅ Consult legal advisor

  • ✅ Comply with regulations

  • ✅ Avoid securities issues

  • ✅ Document everything

    • For Token Holders

    Preparation:

  • ✅ Hold tokens in wallet (not exchange)

  • ✅ Monitor announcements

  • ✅ Understand snapshot timing

  • ✅ Keep gas funds ready

    • Claiming:

  • ✅ Claim when gas is low

  • ✅ Verify amounts

  • ✅ Keep records

  • ✅ Report for taxes

    • Security:

  • ✅ Verify contract addresses

  • ✅ Use official platform

  • ✅ Beware of scams

  • ✅ Never share private keys

    • Common Questions

    Q: Do I need to claim immediately?
    A: No, claims never expire. Claim when convenient.

    Q: What if I sell tokens after snapshot?
    A: You still receive dividends. Snapshot is permanent.

    Q: Can I claim for someone else?
    A: No, only the holder at snapshot can claim.

    Q: What if I held tokens in vault?
    A: Vault depositors are included in snapshots.

    Q: How often are dividends distributed?
    A: Depends on producer. No fixed schedule.

    Q: Are dividends guaranteed?
    A: No, depends on film revenue. Not guaranteed.

    Q: What if round is never activated?
    A: Creator can withdraw funds via emergency function.

    Q: Can I see who claimed?
    A: Yes, all claims are on-chain and public.

    Q: What if I lose access to wallet?
    A: Funds lost. Always secure your wallet.

    Q: Are there fees to claim?
    A: Only gas fees. No platform fees.

    Troubleshooting

    "Not Eligible" Error:

  • Check if you held tokens at snapshot

  • Verify snapshot time

  • Confirm token address

  • Check if already claimed

    • "Round Not Active" Error:

  • Round not yet activated

  • Wait for producer to activate

  • Check round status

    • Transaction Failed:

  • Insufficient gas

  • Already claimed

  • Round ended

  • Contract paused

    • Wrong Amount Displayed:

  • Verify snapshot balance

  • Check total supply

  • Recalculate manually

  • Contact support if error

    • Next Steps:

  • Understand Fee Structure →

  • Learn About Lending →

  • Explore Trading →