Escrow

The escrow system is a cornerstone of Arena DAO's competition platform, ensuring fair and transparent management of funds and assets.

Key Functions

1. Funding

  • Token Support: The escrow handles multiple token types:

    • CW20 tokens

    • Native tokens

    • CW721 (NFT) tokens

  • Locking Mechanism: Participants must send their dues to the escrow, locking them once completely funded for the duration of the competition.

  • Withdrawal: Users can withdraw funds when the escrow is unlocked.

2. Fund Distribution

The escrow employs a flexible distribution system to accommodate various competition structures:

a. Member-Percentage Distribution

  • Funds are allocated based on a predefined member-percentage list.

  • The sum of all percentages must equal 100%.

b. Remainder Address

  • A designated address receives any leftover funds after member share calculations.

  • All NFTs (CW721 tokens) are sent to the remainder address due to their indivisible nature.

c. Preset Distributions

  • Members can establish preset distribution rules for incoming funds.

  • Example: A DAO can specify an even distribution among its members, streamlining the process.

  • Note: Preset distributions cannot be modified when the escrow is locked.

3. Withdrawal Process

  • After fund distribution, users can withdraw their new balances from the escrow.

  • The withdrawal process is initiated by the user and executed by the smart contract.

Escrow States

The escrow has two primary states:

  1. Unlocked: Ready to receive funds and allow withdrawals.

  2. Locked: Funds are secured during the competition.

Important notes:

  • Preset distributions cannot be changed once the escrow is locked.

  • Funds cannot be withdrawn when the escrow is in a locked state.

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