Escrow

Ensuring Fair and Transparent Fund Management

The escrow system is a cornerstone of Arena DAO's competition platform, ensuring fair and transparent management of funds and assets. Working in conjunction with the Payment Registry, it provides a secure and reliable way to handle participant contributions, prize distributions, and withdrawals.

Funding

• Multi-Token Support: Handles multiple token types, including:

  • CW20 tokens (fungible tokens)

  • Native tokens (e.g., ATOM, OSMO)

  • CW721 tokens (non-fungible tokens, or NFTs)

• Locking Mechanism: Secures funds once the competition is fully funded.

• Withdrawal: Allows fund withdrawal when in an unlocked state.

Fund Distribution

• Member-Percentage Distribution: Allocates funds based on predefined percentages.

• Remainder Address: Receives leftover funds and all NFTs.

Escrow States

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

2. Locked: Funds secured during the competition.

Workflow

1. Competition Setup

   • Organizers create the competition and set parameters.

   • Participants register and set their distribution preferences in the Payment Registry.

2. Funding Phase

   • Escrow is in the Unlocked state.

   • Participants send required contributions to the escrow.

   • Once fully funded, the escrow transitions to the Locked state.

   • The competition's activation height is recorded.

3. Competition Active

   • Escrow remains in the Locked state.

   • Payment Registry records are immutable for this competition.

4. Competition Conclusion

   • Arena Core determines the winners and prize allocations.

5. Distribution Process

   • Arena Core queries the Payment Registry for each winner's distribution preferences.

   • The query uses the winner's address and the recorded activation height.

   • Escrow system processes distributions based on: a. Competition-level allocations (e.g., 1st place, 2nd place) b. Individual winner's Payment Registry preferences

6. Withdrawal Phase

   • Escrow transitions back to the Unlocked state.

   • Winners (individuals or teams) can withdraw their allocated funds.

   • For team distributions:

     • Funds are automatically subdivided according to the Payment Registry records.

     • Team members can withdraw their individual allocations directly.