Treasury Distribution
How DALP's treasury payment architecture enables digital assets to act as their own payment source for automated lifecycle distributions to investors.
Overview
DALP's treasury payment capability integrates settlement currency management directly into the digital asset. Rather than relying on external treasury contracts or manual payment processes, the asset holds settlement currency and distributes it to investors automatically when lifecycle events trigger a payment.
This design makes treasury operations a first-class component of the digital asset lifecycle --- not a separate system bolted on after issuance.
Architectural model
The key design elements are:
- Asset-integrated treasury --- The asset contract holds settlement currency directly. There is no external treasury contract to deploy or manage.
- Feature-gated payment authorization --- Only registered lifecycle features can request payment from the treasury. Unauthorized payment requests are rejected.
- Per-investor distribution --- The distribution engine calculates each investor's share based on their current holding and dispatches currency to their custody account.
- On-chain record --- Every distribution event is recorded immutably, providing a complete audit trail.
Payment authorization
The treasury does not accept payment requests from arbitrary sources. Authorization works through a registered feature list:
This authorization model ensures that only approved lifecycle operations can trigger distributions, protecting treasury funds from unauthorized depletion.
Lifecycle features as payment triggers
Payment features are registered on the asset at configuration time. Each feature type encodes the business logic for when and how payments are calculated:
| Feature type | Trigger | Amount calculation |
|---|---|---|
| Yield distribution | Scheduled interval (daily, monthly, quarterly) | Rate x investor holding x elapsed period |
| Maturity redemption | Asset maturity date | Principal amount per unit x investor holding |
| Coupon payment | Scheduled coupon date | Fixed coupon rate x face value x investor holding |
Features are not activated globally --- each must be explicitly registered on the specific asset where it will operate. This prevents features from being applied to assets they were not designed for.
Settlement currency model
The asset treasury holds settlement currency --- a specific payment currency designated at asset configuration time. This is distinct from the digital security itself:
- Digital security --- The tokenized instrument (bond, equity, fund unit) that investors hold
- Settlement currency --- The payment medium (typically a regulated stablecoin or fiat-linked currency) used for distributions
The treasury balance must be funded by the issuer before distribution events occur. If the treasury balance is insufficient at payment time, the distribution does not execute --- partial payments are not made. This protects investors from receiving only a fraction of their entitled distribution.
Auto-detection of treasury capability
DALP automatically detects whether an asset has treasury payment capability or relies on an external custody account for payments. This detection happens at the time of payment initiation, allowing assets to be deployed without treasury capability and upgraded later if needed.
On-chain auditability
Every payment event is recorded on-chain, capturing:
- Timestamp of distribution
- Total amount distributed
- Number of recipients
- Per-recipient amounts
- The lifecycle feature that triggered the payment
This record is immutable and cannot be altered after the fact. It serves as the authoritative source for investor reporting, regulatory submissions, and audit inquiries.
Integration with DALP lifecycle
Treasury payment capability is one component of DALP's broader asset lifecycle:
- Before distributions: Asset issuance, investor onboarding, compliance verification (handled by issuance and compliance modules)
- At distribution: Eligibility checked against current compliance rules; treasury distributes to eligible holders
- After maturity: Final redemption distribution triggered; asset moves to retired status
The compliance layer that governs transfers also governs distribution eligibility --- the same investor identity and rule framework applies throughout the lifecycle.
Airdrop Distribution Flow
How the DALP airdrop distribution flow operates -- from Merkle root deployment through proof verification, claim tracking, and token transfer across all three airdrop strategies.
XvP Settlement Flow
How the DALP XvP settlement flow executes atomic multi-party token exchanges -- from settlement creation through approval collection, optional hashlock coordination for cross-chain legs, to all-or-nothing execution.