Service: Smart Dividends

The Smart Dividends Service is the platform's comprehensive engine for managing and executing all post-closing financial returns and value accrual for tokenized assets. It bridges the gap between an RWA's financial performance and the on-platform investor, ensuring returns are calculated accurately, distributed compliantly, and recorded immutably.

This service provides three distinct models for issuers, addressing the full spectrum of RWA return types:

1. Capability A: Periodic Distribution (Batch Model)

   • An administrator-driven process for assets with periodic payouts (e.t., quarterly rent, monthly loan interest). An admin initiates a Distribution event, and the service executes a batch of payout transfers (fiat, crypto, or in-kind) to all investors.

2. Capability B: Continuous Distribution (Streaming Model)

   • A smart-contract-driven process for assets with continuous yield (e.g., T-bills, MMFs). The smart contract itself is the distribution mechanism, automatically "streaming" new tokens to holders in real-time as yield is generated.

3. Capability C: Price Appreciation (Growth Model)

   • A smart-contract-driven model where all yield is retained and reinvested within the asset pool. There are no payouts. Instead, the smart contract's internal logic (e.g., an exchangeRate) increases, making each token permanently more valuable.

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This engine is built on key pillars:

• Automation: Replaces manual spreadsheet calculations with a systematic workflow for calculating and executing pro-rata distributions.

• Distribution Flexibility: Provides multiple payout mechanisms, allowing issuers to distribute returns as traditional fiat currency (USD), on-chain stablecoins (USDC), or "in-kind" as additional RWA tokens (the "Dividend-Paying Model").

• Transparency & Auditability: Creates a verifiable, immutable record for every financial return.

  • (Batch): Generates Payout Line Item records for reporting.

  • (Streaming): Relies on immutable on-chain transactions, visible on any block explorer.

  • (Growth): Relies on a verifiable on-chain exchangeRate or Net Asset Value (NAV) reported by the contract.

• Seamless Integration: Connects directly to the Integrated Wallet Solution and evm-api to deliver funds (A, B) or display accurate value (C).

• Compliance by Design: Ensures all payouts, whether batched by an admin or streamed by a contract, automatically respect the token's built-in KYC/AML, jurisdictional, and investor-type rules.

Core Technical Components & APIs

This engine is triggered by administrators and orchestrates payouts by reading from core models and calling execution APIs.

Components for Capability A (Periodic / Batch)

• Primary Models:

  • Distribution Model : The central record for a single payout event (e.g., "Q4 2025 Dividend for Offer X").

  • Payout Line Item : A child record of a Distribution, representing a single investor's calculated share.

  • Offer Model: Read to identify investors and asset terms.

  • Investment Model: Read to determine each investor's pro-rata ownership percentage.

  • Transaction Model: Created by this service (via wallet-api) to log fiat payouts.

  • EVM Transfer Model: Created by this service (via evm-api) to log on-chain crypto payouts.

• Governing Logic:

  • Distribution Status Lifecycle : Manages the state of a payout event.

  • Pro-rata calculation logic.

• APIs:

  • distribution-api: Exposed to the Issuer Portal for administrators to create, review, and execute distribution events.

  • investment-api: To fetch the final list of investors and their holdings.

  • wallet-api: To execute fiat payouts to investors' internal Wallets.

  • evm-api: To execute batch on-chain distributions (Stablecoin or In-Kind).

  • notification-api: To send payout alerts to investors.

Components for Capability B (Continuous / Streaming)

• Primary Models:

  • EVM Contract Model: The streaming contract is the service.

• Governing Logic:

  • On-Chain Smart Contract Logic: The distribution logic is embedded in the contract.

• APIs:

  • evm-api: Used by the Investor Portal to read an investor's evm-wallet balance, which grows in real-time.

  • notification-api: To send payout alerts to investors.

Components for Capability C (Price Appreciation / Growth)

• Primary Models:

  • EVM Contract Model: The accrual contract is the service.

• Governing Logic:

  • On-Chain Smart Contract Logic: The yield-reinvestment logic is embedded in the contract.

• APIs:

  • evm-api: Used by the Investor Portal to query the contract's current exchangeRate or pricePerShare to display the value of an investor's holdings (e.g., Value = token_balance * exchange_rate).

The Process Lifecycle & Key Capabilities

The service's operation is best described by its three distinct process lifecycles.

Capability A: Periodic Distribution (Batch Model) Lifecycle

This is an administrator-driven process, perfect for traditional income assets.

• Phase 1: Event Creation: Admin selects a CLOSED_SUCCESSFULLY Offer and initiates a new Distribution event and defines parameters (Total Amount, Payout Type):

  • FIAT (Cash Dividend): To be paid in cash (USD) to investors' Wallets.

  • CRYPTO (Stablecoin Dividend): To be paid in a stablecoin (e.g., USDC) to investors' EVM Wallets.

  • TOKEN (In-Kind Dividend): To be paid in more of the Offer's own RWA token (as in the "Dividend-Paying Model").

• Phase 2: Calculation: The service fetches all SUCCESSFULLY_CLOSED Investments for that Offer and their exact number of shares/tokens. The engine calculates each investor's pro-rata share of the total distribution amount and generates Payout Line Items for admin review.

• Phase 3: Execution: Admin approves. The service loops and calls wallet-api or evm-api to execute each payout:

  • If FIAT: It calls the wallet-api to create a Transaction, moving the payout_amount from the Offer's treasury wallet to the investor's Wallet.

  • If CRYPTO (Stablecoin): It calls the evm-api to execute a stablecoin transfer from the treasury wallet to the investor's EVM Wallet.

  • If TOKEN (In-Kind): It calls the evm-api to execute a transfer of the Offer's own RWA token from the offer treasury wallet to the investor's EVM Wallet.

• Phase 4: Confirmation: The Distribution is marked COMPLETED. The engine calls the notification-api to send an automated in-app notification and email to all investors confirming they have received a distribution. The new data is made available via API for the Investor Portal's "Distributions" tab.

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Capability B: Continuous Distribution (Streaming Model) Lifecycle

This is a smart-contract-driven process, configured once at asset creation.

• Phase 1: Configuration: The RWA Tokenization Engine deploys a specialized "streaming" smart contract.

• Phase 2: Ongoing Execution: Yield is streamed into the contract treasury. The contract's own logic automatically mints/distributes new tokens to holders in real-time (e.g., "every 10 seconds"). The token price remains stable (e.g., $1.00).

• Phase 3: Confirmation: Confirmation is simply observing the on-chain state. The Investor Portal calls the evm-api to read the investor's token balance, which visibly increases.

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Capability C: Price Appreciation (Growth Model) Lifecycle

This is a smart-contract-driven "non-payout" model, configured once at asset creation.

• Phase 1: Configuration: The RWA Tokenization Engine deploys a specialized "accrual" smart contract.

• Phase 2: Ongoing Execution: Yield is streamed into the contract treasury. The contract's own logic automatically reinvests this yield. No payouts occur. Instead, the contract's internal exchangeRate or pricePerShare continuously rises. The investor's token balance remains the same.

• Phase 3: Confirmation: Confirmation is observing the on-chain state. The Investor Portal calls the evm-api to read the contract's current exchange rate.

  • Displayed Value = token_balance * exchange_rate

  • This shows the investor's value growing, even though their token quantity is static.

Advanced Scenarios & Model Selection

• The platform supports all three core economic models, which are configured by the RWA Tokenization Engine.

Feature	Capability B: Continuous Income	Capability A: Periodic Income	Capability C: Price Appreciation
Goal	Real-time, predictable income	Regular, periodic income	Long-term capital appreciation
Token Price	Pegged (e.g., $1.00)	Pegged (e.g., $1.00)	Increases over time
How You Earn	Receive new tokens (streaming)	Receive new tokens (in batches)	Same tokens become more valuable
On-Chain Activity	Continuous micro-distributions	Periodic, admin-triggered transfers	No distributions; price math handles accrual
Managed By	The Smart Contract itself	Distribution & Payout Service	The Smart Contract itself
Typical Asset	T-Bills, MMFs, Liquid Yield	Real Estate, Private Credit, Funds	Venture Capital, Art, Accrual Funds

• Capital Repayments: The Periodic Distribution (Batch Model) can also be used to manage capital repayment events (e.g., a loan matures, an asset is sold), where the "distribution" represents a return of capital, not just a return on capital.

• Partial Failures: If a single payout fails (e.g., an on-chain transaction runs out of gas), the engine must mark that Payout Line Item as FAILED but continue processing the batch. The main Distribution record will be marked PARTIALLY_COMPLETED, and an alert will be created for an administrator to resolve.

• Tax Reporting Support: All distribution records and transactions are structured to support the generation of tax documents based on the payout type.

• Capital Repayments: This engine can also be used to manage capital repayment events (e.g., a loan matures, an asset is sold), where the "distribution" represents a return of capital, not just a return on capital.