Revenue Distribution for Producers

How to Share Profits with Your Token Holders

One of the most powerful features of RedCarpetHQ is the ability to distribute real-world revenue directly to your token holders — transparently, automatically, and without intermediaries.

The Dividend System

How It Works

When your film or TV project generates revenue (streaming, box office, licensing), you can distribute a portion to token holders via the DividendDistributor smart contract.

``
Step 1: Producer deposits USDC into DividendDistributor
Step 2: Contract takes a snapshot of all token holders
Step 3: Activate the round — claims become available
Step 4: Holders claim their pro-rata share directly
`

Key Properties

  • No Expiration: Holders can claim anytime. No deadlines.
  • Pro-Rata Fair: Each holder receives exactly their ownership percentage
  • Includes Vault Depositors: Even lenders who deposited USDC (and received vault shares) are counted
  • Multi-Round: You can run multiple dividend rounds as revenue arrives

    • Step-by-Step Guide

    Step 1: Prepare Revenue

    Gather the USDC you want to distribute. This comes from:

  • Streaming platform payments (Netflix, Amazon, etc.)

  • Theatrical box office collections

  • Licensing deals (international, airline, hotel)

  • Merchandise and soundtrack revenue

    • Step 2: Create a Dividend Round

    `
    Action: Create Dividend Round
    Amount: 10,000 USDC
    Round Name: "Q1 2027 Streaming Revenue"
    `

    Step 3: Snapshot

    The contract records every address holding your token at the current block:

    `
    Snapshot taken at Block #12,345,678
    Total Supply: 500,000 tokens
    Unique Holders: 1,247 addresses
    `

    Step 4: Activate

    Once activated, holders can claim:

    `
    Example:

  • Total Dividend: 10,000 USDC

  • You hold: 5,000 tokens (1% of supply)

  • Your claim: 100 USDC

    • Claim anytime. No rush. No expiration.
    `

    Best Practices

    Communication

  • Announce before distributing: Tell your community a dividend round is coming
  • Explain the source: "This is from our Netflix licensing deal" builds trust
  • Set expectations: Not every round will be large. Be transparent about revenue timing.

    • Frequency

    | Model | When to Use |
    |---|---|
    | Milestone-based | Distribute when a specific revenue event occurs (streaming deal, festival sale) |
    | Quarterly | Regular, predictable distributions once revenue is steady |
    | Annual | Large, lump-sum distributions after a full fiscal year |

    Amount Guidance

    There is no requirement to distribute any specific percentage. However, transparent producers typically:

  • Share a portion of net revenue (after production costs recouped)

  • Communicate the formula upfront in campaign materials

  • Reserve treasury for marketing, festival submissions, and contingency

    • Producer Exit Strategy

    If you want to cash out some of your own tokens without dumping them on the market, use the Burn for Vault Shares mechanism:

    `
    1. Burn your tokens
    2. Receive the protocol's 10% vault allocation
    3. No market impact
    4. 25% exit fee applies (protects ecosystem)
    ``

    This lets you exit without crashing your token price.

    Community Engagement Beyond Dividends

    Project Updates

    Keep investors informed with regular updates:

  • Production milestones (casting, shooting, post-production)

  • Festival selections and awards

  • Distribution deals signed

  • Revenue forecasts

    • Surveys

    Use the survey system to gather community input:

  • Poster design voting

  • Title options

  • Distribution preference (theatrical vs. streaming)

    • Note: Surveys are non-binding advisory votes. You retain creative and business control.

    Tax Considerations

    For Producers:

  • Dividend distributions may be deductible business expenses

  • Keep records of all rounds, amounts, and snapshots

  • Consult a tax professional in your jurisdiction

    • For Investors:

  • Dividends are typically taxable as income

  • Investors should track claim amounts and dates

  • The blockchain provides an immutable record

    • Next: Producer Rights & Protection →