We are thrilled to announce a groundbreaking new feature for DAOs registered on our platform: Dividends for DAOs. This innovative function enables the distribution of any token or Ether among the token holders of your DAO, leveraging the power of balance snapshots to calculate each holder’s share of the dividend amount. Dividends can be sourced directly from the DAO’s treasury or managed by a designated officer.
How Does It Work?
Utilizing a sophisticated smart contract system, the Dividends for DAOs feature captures snapshots of token balances at specific block numbers. When dividends are deposited — either from the DAO’s treasury or directly by a manager’s address (e.g., via MetaMask) — the contract calculates the amount each token holder is entitled to, based on their holding proportion at the time of the snapshot.
- Snapshot-Based Distribution: Ensures a fair and transparent allocation of dividends, reflecting the token distribution at the time of the snapshot.
- Flexible Dividend Sources: Dividends can come directly from the DAO’s treasury or any address authorized by the DAO, providing flexibility in fund management.
- Support for Ether and ERC20 Tokens: Whether distributing native Ether or any ERC20 token, the system seamlessly handles the process.
- Non-Reentrant for Security: The deposit and claim functions are non-reentrant, preventing potential vulnerabilities such as re-entrancy attacks.
- Failed Transfer Handling: If a dividend transfer fails, the system records it, allowing for a retry without losing the rightful claim to the dividends.
- Compliance Checks: Incorporates compliance checks, ensuring only whitelisted addresses can participate, aligning with regulatory requirements and internal DAO policies.
Why Use Dividends for DAOs?
Rewarding token holders is a vital aspect of nurturing a thriving DAO ecosystem. Dividends for DAOs not only incentivizes long-term holding but also fosters a sense of community and shared success among members. With this feature, DAOs can effectively manage and distribute earnings, reflecting their commitment to their supporters.
How to Get Started?
If you’re a DAO registered on our platform, integrating the Dividends for DAOs feature is straightforward. You can start by proposing a Dividend Deposit via our governance module, specifying the amount and the token or Ether to distribute. Once the proposal is approved, the dividends are deposited and ready for token holders to claim based on their eligible balance at the snapshot block number.