Stellar Community Fund

By SoroSplits

SoroSplits

SCF #19

$59.7K

Legacy v4.0 Award

Awarded

Develop an open-source smart contract that enables the Stellar community to split on-chain payments in a trustless manner.

Products & Services

Product: SoroSplits is a set of smart contracts & interfaces to enable split transactions and revenue sharing across multiple parties in the Stellar ecosystem. The core functionality of the smart contract would allow any assets (tokens) that exist on Stellar to be split in a trustless, automated, & transparent way across addresses and the user interface would enable all Stellar community members & projects to leverage the technology as a public good. This functionality is a fundamental component to move the ecosystem away from off-chain counterparties and “trusted” middlemen to a truly decentralized contracting & payment structure, a critical building block for the continued growth of the Stellar ecosystem.

Problem: A fundamental aspect of Web3 is the ability for users to collaborate in a joint venture in a decentralized manner. While this has enabled incredible technology to be built, the resulting creation & capture of value is often not directly aligned with those users. This allocation problem is inherent in many decentralized endeavors. While this problem manifests itself throughout Web3, specific examples that exist today include: DAOs. Rewarding members & contributors their share of treasury rewards and/or earned revenue with a single payment, rather than constantly managing a list of addresses, reducing the administrative burden to manage payments. Web3 platforms. Lacking a trusted solution to distribute payment, on-chain, to groups of users who provide services. Creatives. Distributing share of the economics, in a transparent way that is verifiable prior to execution, to backers of projects & fans. NFT projects. Providing a mechanism to distribute a portion of royalty fees to holders, in a trustless manner.

How it works: Initialization - The contract is set up with a list of recipients and their respective percentage shares. These recipients will receive native tokens based on these shares. An administrator is assigned who can manage the contract. Updating Shares - If the contract is marked as "mutable," the administrator can update the list of recipients and their shares. Shares represent how much of the total tokens recipients receive. The administrator can adjust the percentages assigned to each recipient, as long as the total percentages remain 100%. Locking the Contract - The administrator has the option to lock the contract, preventing any further changes to the recipient shares and other settings. Once locked, the contract becomes immutable. Distributing Native Tokens - The administrator initiates the distribution of native tokens to recipients based on their assigned percentage shares. The contract calculates the amount of tokens each recipient should receive and distributes them accordingly. Querying the Contract - Users can query the contract to retrieve information about its configuration, individual shares, and recipients. This helps anyone interested in verifying the contract's state & distribution of tokens.