Dividend Management

Overview

Dividend Right Management within the asset tokenization platform is designed to administer and automate the distribution of dividends from revenue-generating assets, such as tokenized Pokemon cards. This system is built on a role-based management approach, ensuring that dividends are distributed fairly and transparently to token holders according to their ownership stakes.

Role-Based Dividend Management

1. Roles and Responsibilities:

   • Dividend Provider: The asset owner or any designated party who commits to paying dividends. They hold the authority to deposit funds into the Earnings Pool Contract.

   • Dividend Recipient: Token holders who are entitled to receive dividends based on the percentage of tokens they own.

2. Smart Contract Roles:

   • Smart contracts assign and enforce roles, ensuring that only authorized users can perform specific actions related to dividend distribution.

Earnings Pool Contract

1. Functionality:

   • The Earnings Pool Contract is a smart contract designed to collect a portion of the earnings from the asset's economic activities.

   • It functions as a treasury, holding the funds allocated for dividend distribution.

2. Collection Mechanism:

   • The contract includes functions to allow the Dividend Provider to deposit funds.

   • It calculates the total dividend amount based on a predetermined percentage of the asset's revenue.

Dividend Distribution Mechanism

1. Automated Distribution:

   • The contract calculates each Dividend Recipient's share based on their token ownership percentage.

   • It automatically distributes dividends at set intervals (monthly, quarterly, yearly).

2. Dividend Calculation:

   • For each distribution event, the smart contract executes a function to calculate the exact dividend amount per token.

   • The calculation takes into account the total number of tokens and the total funds available in the Earnings Pool.

Example Scenario: Dividend Payments for a Tokenized Pokemon Card

1. Contractual Automation Setup:

   • A user who owns a tokenized Pokemon card signs a contract on the blockchain, stipulating the automated payment of dividends.

   • The contract specifies the frequency and amount of dividends to be paid into the Earnings Pool.

2. Function Implementation:

   • A smart function named distributeDividends is triggered as per the schedule defined in the contract.

   • The function reads the total funds in the Earnings Pool and the current number of tokens eligible for dividends.

3. Distribution Execution:

   • The function executes transfers from the Earnings Pool to each token holder's wallet, corresponding to their stake in the asset.

   • The transactions are recorded on the blockchain, providing a transparent ledger of all dividend payments.

Mathematical Foundation

• Let $PP$ be the periodic payment made by the Dividend Provider to the Earnings Pool.

• The total number of tokens is denoted by $TT$, and the number of tokens held by a recipient is $titi​$, where $ii$ is the token holder identifier.

• The dividend per token, $DD$, is calculated as $D=PTD=TP​$.

• Each token holder receives a dividend payout, $DiDi​$, which is computed as $Di=D⋅tiDi​=D⋅ti​$.

Considerations for Future Enhancements

• Introduce external oracles to verify revenue from other assets like stocks and automate dividend payments based on verified earnings.

• Explore decentralized finance (DeFi) protocols for potential reinvestment strategies for the Earnings Pool to generate additional income for token holders.

Conclusion

The Dividend Management system within the asset tokenization platform provides a structured and automated way to manage and distribute dividends to token holders. Through the integration of smart contracts, role-based management, and an Earnings Pool, the system ensures that dividends are paid accurately and fairly, reflecting the true ownership stakes of investors. This approach not only simplifies the dividend distribution process but also enforces the contractual commitments made by asset owners in a transparent and verifiable manner.