Escrow
In the Arena DAO, the escrow plays a crucial role in competitions. Its main function is to ensure that the funds or assets contributed by the participants or hosts are protected and distributed in a fair and transparent manner according to the result of the competition.
Funding:
At the start of a competition, participants are required to send their dues to the escrow to lock it. The escrow is designed to handle most types of tokens: CW20, native, and CW721. Users can withdraw funds whenever the escrow is unlocked.
For more information on the escrow state, view the link below for a visual explanation! Competitions
Fund Distribution:
Member-Percentage: Escrow funds are distributed according to a member-percentage list. The sum of percentages must always equal 100%.
Remainder Address: The remainder address is a designated address that receives any leftover funds after member shares are calculated. NFT's will always be sent to the remainder address, because they are not divisible into percentages.
Preset Distributions: Members can set preset distributions to flow incoming funds to other members. For example, a DAO can specify an even distribution to its members to avoid a lengthy proposal process. The preset distribution cannot be updated when the escrow is locked.
Withdrawal:
After the distribution of funds is processed, users can withdraw their new balances from the escrow.
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