05InvestorsLock-up and dividends

Paid to the patient.

Tokens earn in the vault; only full periods are paid.

Dividends reward holders who stay. A company commits a share of its yearly net profit and pays it in USDC each period. The payout is split pro-rata among tokens that were locked in the vault for the whole period, so locking just before a payout earns nothing.

Portfolio: tokens earning in the vault, a lock-up date, unlocked tokens and tokens held by an open sell order.
Portfolio: tokens earning in the vault, a lock-up date, unlocked tokens and tokens held by an open sell order.

1. Lock

Tokens bought during a lock-up are already in the vault. Afterwards, holders choose how much to lock. Tokens locked now start earning from the next period, and can be unlocked at any time.

Recorded on Stellar testnet
Locking 250 KESTREL. They start earning when the next dividend period starts.

2. The company pays

At the end of a period the company enters its net profit; the page works out the committed share and pays it to the vault in one transaction, which also starts the next period.

Recorded on Stellar testnet
Kestrel Coffee Roasters reports 50 USD of profit for the period and pays 40% of it, 20 USDC, to its 250 locked tokens.

3. Holders claim

Recorded on Stellar testnet
The holder claims the 20 USDC. It lands in the wallet as Circle USDC.
On-chain
  • The vault keeps a reward-per-token accumulator per share token, plus active and pending totals.
  • lock adds pending tokens. distribute pays the period and turns pending into active. claim pays out what each holder is owed.
  • Every call costs the same however many holders there are. There is no loop over holders.
Legal
  • The obligation to pay is in the signed profit-share agreement, enforced off-chain. The chain records every payment.
  • Late payments are flagged on the listing.
  • Tokens in a lock-up can't move because the wallet's trustline is deauthorized. They still earn.