# Treasury Distribution

Source: https://docs.settlemint.com/docs/architects/flows/treasury-distribution
How DALP fixed treasury yield uses a configured treasury address to fund
holder-initiated claims for completed yield periods.




The asset token holds no internal yield reserve. Holders submit claims after eligible periods complete, and the configured treasury address pays out the denomination asset. DALP records each claim on chain and indexes the distribution state so you can reconcile payouts and satisfy auditors without reconstructing from raw chain reads.

## System context [#system-context]

<Mermaid
  chart="`
flowchart LR
  Holder[Token holder]
  Token[Token with fixed treasury yield]
  Feature[Fixed treasury yield feature]
  Treasury[Configured treasury address]
  Denomination[Denomination asset]
  Indexer[Indexed distribution view]

  Token --> Feature
  Feature --> Treasury
  Feature --> Denomination
  Holder -->|claim yield after completed periods| Feature
  Treasury -->|pays denomination asset| Holder
  Feature -->|claim and period evidence| Indexer

`"
/>

The asset token does not hold a separate treasury balance for fixed treasury yield. Payment capacity depends on the configured treasury address and denomination asset.

## Configuration model [#configuration-model]

A fixed treasury yield feature binds one token to a yield schedule and payout source.

| Configuration item                 | What it controls                                                       |
| ---------------------------------- | ---------------------------------------------------------------------- |
| Token                              | The asset whose holders can accrue yield.                              |
| Denomination asset                 | The payment asset used for yield claims.                               |
| Treasury                           | The address that funds payouts.                                        |
| Yield basis                        | The basis amount used to convert holder balances into claimable yield. |
| Rate                               | The yield rate applied by the feature.                                 |
| Start date, end date, and interval | The period schedule used to calculate completed yield periods.         |

The fixed treasury yield feature stores the treasury address that funds payments. Externally owned treasuries use ERC20 allowance. Vault-style treasuries use the supported payout interface. The asset contract does not hold a separate treasury balance for fixed treasury yield.

## Claim flow [#claim-flow]

Holders claim yield after eligible periods have completed. DALP does not automatically push each yield payment to every holder.

<Mermaid
  chart="`
sequenceDiagram
  participant Holder as Holder
  participant DAPI as DALP API
  participant Feature as Fixed treasury yield feature
  participant Balances as Historical balances
  participant Treasury as Treasury address
  participant Index as Indexed distribution view

  Holder->>DAPI: Request yield claim
  DAPI->>Feature: Submit claim transaction
  Feature->>Balances: Read period-end balances
  Feature->>Feature: Calculate net claimable yield
  Feature->>Treasury: Pull or request payout
  Treasury-->>Holder: Pay denomination asset
  Feature-->>Index: Record claimed amount and period evidence

`"
/>

DALP calculates period end timestamps from the start date, end date, and interval. Holder entitlement depends on balances at completed periods. The feature resolves a historical-balance provider when the feature is attached to the token.

A claim records the holder, the net claimed amount, the first and last claimed period, per-period holder amounts, per-period total yields, and the estimated total yield per period. The feature also tracks total claimed amount, consumed interest, and accrual closure state. Later claims draw against the remaining net entitlement.

## Treasury ownership and allowance [#treasury-ownership-and-allowance]

The treasury address is an operational funding source for payouts.

* An externally owned treasury must approve enough denomination asset allowance for the feature to pay claims.
* A vault-style treasury must support the payout interface expected by the feature.
* Governance can update the treasury address.
* A zero-address treasury update is rejected.
* Treasury updates emit an on-chain event for auditability.

A holder may have no claimable yield when no period has completed, when the holder had no eligible balance at completed periods, when the holder already claimed those periods, or when consumed interest offsets the available amount.

## Indexed distribution view [#indexed-distribution-view]

DALP exposes the fixed treasury yield state through indexed data so you do not need to reconstruct every claim from live chain reads.

The indexed view includes:

* the yield schedule and configured treasury address;
* the denomination asset;
* whether the treasury is classified as a contract when that information is available;
* claimed and unclaimed yield values;
* period-level distribution data.

Use the indexed view to monitor distribution progress, reconcile holder claims, and confirm the treasury configuration matches your intended payout source.

## Audit evidence [#audit-evidence]

Auditors have three evidence layers available for review:

1. Configuration evidence: token, denomination asset, treasury, rate, basis, and schedule.
2. Claim evidence: holder, claimed amount, claimed periods, and period-level yield data.
3. Treasury evidence: current treasury address and treasury update events.

These layers show how DALP calculated and recorded holder claims. They do not prove the economic source of funds before funds reach the configured treasury address.

## What DALP covers [#what-dalp-covers]

Coupon payments, maturity redemption, reserve verification, and external treasury-operator duties are outside the scope of fixed treasury yield.

For the broader compliance model, see [asset policy](/docs/architecture/concepts/asset-policy). To find related flows for your integration, see [architecture flows](/docs/architects/flows).