# 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 →](fees.md) - [Learn About Lending →](lending-borrowing.md) - [Explore Trading →](../trading/marketplace.md)