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:

  1. Member-Percentage: Escrow funds are distributed according to a member-percentage list. The sum of percentages must always equal 100%.

  2. 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.

  3. 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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