Managing Distributions

Distributions allow DAOs to share rewards, revenue, and other assets with stakers and token holders. This guide covers setting up and managing distribution mechanisms.

Distribution Types

Reward Distributions

Regular rewards for staking participation:

Type: Staking Rewards
Frequency: Weekly
Source: Protocol Revenue
Recipients: All stakers
Calculation: Pro-rata by stake weight

Share protocol income with token holders:

Type: Revenue Share
Frequency: Monthly
Source: Fee collection
Recipients: veToken holders
Calculation: Pro-rata by voting power

One-Time Airdrops

Distribute tokens for specific events:

Type: Airdrop
Frequency: One-time
Source: Treasury allocation
Recipients: Snapshot of holders
Calculation: Custom criteria

Dividend Distributions

Periodic profit sharing:

Type: Dividend
Frequency: Quarterly
Source: Net protocol profit
Recipients: Token holders
Calculation: Per-token basis

Setting Up Distributions

Step 1: Create Distribution Pool

Navigate to DAO Settings > Distributions
Click Create Pool

┌─────────────────────────────────────────────────────────────┐
│ Create Distribution Pool                                     │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│  Name:         [Staking Rewards Pool        ]               │
│                                                              │
│  Token:        [LUX ▼]                                      │
│                                                              │
│  Recipients:   [○ All token holders                         │
│                 ● Stakers only                               │
│                 ○ veToken holders                            │
│                 ○ Custom list                       ]        │
│                                                              │
│  Distribution: [○ Pro-rata by balance                       │
│                 ● Pro-rata by stake weight                   │
│                 ○ Equal split                                │
│                 ○ Custom formula                    ]        │
│                                                              │
└─────────────────────────────────────────────────────────────┘

Step 2: Configure Distribution Schedule

Set up automatic distributions:

schedule:
  frequency: weekly
  day: Monday
  time: 00:00 UTC

  # Or use block-based
  block_interval: 50400  # ~weekly on ETH

  # Minimum distribution threshold
  min_amount: 1000 LUX

Step 3: Fund the Pool

Add tokens to the distribution pool:

Manual Funding:

Go to pool dashboard
Click Add Funds
Enter amount and confirm

Automatic Funding:

auto_fund:
  enabled: true
  source: protocol_fees
  percentage: 50%
  frequency: daily

Step 4: Configure Recipient Criteria

Define who receives distributions:

recipients:
  type: stakers

  filters:
    min_stake: 100 LUX
    min_lock_time: 7 days
    active_only: true

  exclusions:
    - treasury_address
    - team_vesting_contracts

  snapshot:
    type: block_based
    block: distribution_block - 1

Distribution Calculations

Pro-Rata by Balance

Standard distribution based on token balance:

User Share = (User Balance / Total Supply) × Distribution Amount

Example:

Total Distribution: 10,000 LUX
User Balance: 1,000 LUX
Total Supply: 100,000 LUX

User Share = (1,000 / 100,000) × 10,000 = 100 LUX

Pro-Rata by Stake Weight

Weighted by lock duration:

User Share = (User Stake × Lock Multiplier / Total Weighted Stake) × Distribution Amount

Example:

Total Distribution: 10,000 LUX
User Stake: 1,000 LUX (locked 180 days, 2x multiplier)
User Weight: 2,000 weighted LUX
Total Weighted Stake: 200,000 weighted LUX

User Share = (2,000 / 200,000) × 10,000 = 100 LUX

Time-Weighted Average

Rewards based on staking duration within period:

User Share = (User Days Staked / Total Stake-Days) × Distribution Amount

Custom Formulas

Create custom distribution logic:

function calculateShare(
    address user,
    uint256 totalDistribution
) external view returns (uint256) {
    uint256 stake = stakingContract.balanceOf(user);
    uint256 lockTime = stakingContract.lockTime(user);
    uint256 boost = nftContract.getBoost(user);

    uint256 weight = stake * lockTime * boost / 1e18;
    uint256 totalWeight = getTotalWeight();

    return (weight * totalDistribution) / totalWeight;
}

Managing Active Distributions

Distribution Dashboard

┌─────────────────────────────────────────────────────────────┐
│ Distribution Dashboard                                       │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│  Active Pools: 3                                            │
│  Total Distributed (30d): 125,000 LUX                       │
│  Unique Recipients: 2,456                                   │
│                                                              │
│  ┌─────────────────────────────────────────────────────┐   │
│  │ Pool Name          │ Balance    │ Next Dist │ APY   │   │
│  ├────────────────────┼────────────┼───────────┼───────┤   │
│  │ Staking Rewards    │ 50,000 LUX │ 3 days    │ 12.5% │   │
│  │ Revenue Share      │ 25,000 USDC│ 12 days   │ 5.2%  │   │
│  │ LP Incentives      │ 30,000 LUX │ 5 days    │ 45.0% │   │
│  └─────────────────────────────────────────────────────┘   │
│                                                              │
└─────────────────────────────────────────────────────────────┘

Monitoring Distributions

Track distribution health:

metrics:
  - pool_balance
  - distribution_rate
  - recipient_count
  - average_claim_size
  - unclaimed_amount
  - runway_days

Adjusting Parameters

Modify distribution settings via governance:

Create parameter change proposal
Specify new values:

proposal:
  type: parameter_change
  target: staking_rewards_pool
  changes:
    - param: distribution_rate
      old: 10000 LUX/week
      new: 15000 LUX/week
    - param: min_stake
      old: 100 LUX
      new: 50 LUX

Claiming Distributions

Automatic Claims

Enable auto-claim for users:

auto_claim:
  enabled: true
  threshold: 10 LUX  # Min amount to trigger
  gas_limit: 100000
  gas_price_cap: 50 gwei

Manual Claims

Users claim through dashboard:

Go to My Staking > Rewards
View pending rewards
Click Claim or Compound

Batch Claims

Claim from multiple pools:

┌─────────────────────────────────────────────────────────────┐
│ Claim Rewards                                                │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│  ☑ Staking Rewards       125.50 LUX                         │
│  ☑ Revenue Share          45.20 USDC                        │
│  ☑ LP Incentives          89.00 LUX                         │
│  ☐ Governance Rewards      0.00 LUX                         │
│                                                              │
│  ────────────────────────────────────                       │
│  Total:  214.50 LUX + 45.20 USDC                           │
│                                                              │
│  [Claim All]  [Claim Selected]  [Compound LUX]             │
│                                                              │
└─────────────────────────────────────────────────────────────┘

Distribution History

View Past Distributions

Access historical data:

history:
  period: last_90_days

  distributions:
    - date: 2026-01-20
      pool: staking_rewards
      amount: 10,000 LUX
      recipients: 1,234
      avg_reward: 8.1 LUX

    - date: 2026-01-13
      pool: staking_rewards
      amount: 10,000 LUX
      recipients: 1,198
      avg_reward: 8.3 LUX

Export Data

Export distribution records:

CSV format for accounting
JSON for integrations
On-chain verification links

Advanced Distribution Patterns

Merkle Distributions

Efficient distribution for large recipient lists:

merkle_distribution:
  root: 0xabc123...
  total_amount: 1,000,000 LUX
  recipients: 50,000
  proof_url: ipfs://Qm...

  # Users claim with Merkle proof
  claim_window: 90 days
  unclaimed_return: treasury

Streaming Distributions

Continuous reward streaming:

stream:
  type: sablier
  total: 100,000 LUX
  duration: 365 days
  cliff: 0
  recipients:
    - address: 0x123...
      share: 50%
    - address: 0x456...
      share: 50%

Conditional Distributions

Distribute based on conditions:

conditional:
  trigger: tvl > 10_000_000 USD

  distribution:
    pool: milestone_rewards
    amount: 50,000 LUX
    recipients: stakers

Troubleshooting

Common Issues

Issue	Cause	Solution
No rewards shown	Below minimum stake	Increase stake amount
Distribution delayed	Low gas prices	Increase gas budget
Wrong amount	Snapshot timing	Check snapshot block
Failed claim	Insufficient gas	Increase gas limit

Emergency Actions

If distribution issues occur:

Pause distributions - Stop automatic payouts
Investigate - Review logs and calculations
Fix - Correct any configuration errors
Resume - Re-enable after verification

emergency:
  pause_distributions: true
  notify_admins: true
  snapshot_state: true

Best Practices

Do

Set sustainable reward rates
Monitor pool balances
Communicate distribution schedules
Test distributions on testnet
Maintain adequate runway

Don't

Promise unsustainable APYs
Change schedules without notice
Exclude legitimate participants
Let pools run empty
Ignore unclaimed token buildup

Next Steps

lock

Using Staking

Token holder staking guide

vault

Treasury

Manage distribution funding

Managing Distributions

Using Staking

Treasury

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