Distributions Authority (DAL) — Marketplace Payout Logic (Phase 0 — High-Level)

Document Version: 1.0 Date: August 7, 2025 Author: CrownThrive, LLC — [email protected] Project: CHLOM™ — Compliance Hybrid Licensing & Ownership Model

1. Objective

Define the high-level payout logic for DAL’s marketplace operations, detailing the rules, triggers, and scheduling mechanisms that govern how funds are distributed to stakeholders. In Phase 0, the focus is on logical framework design and rule hierarchy definition before implementation.

2. Payout Trigger Sources

  • LEX (TLaaS) Events
    • License sales, sublicenses, renewals, and transfer transactions.
  • Performance Milestones
    • Usage thresholds, delivery completions, or contractual fulfillment events.
  • Recurring Schedules
    • Subscription-based payouts at daily, weekly, monthly, or annual intervals.
  • Manual DAO-Approved Releases
    • Governance-driven distributions for exceptional cases.

3. Payout Rules & Conditions

  • Rule Hierarchy
    • Contract terms override default distribution settings.
    • DAO governance rules override non-contractual defaults.
  • Royalty Calculations
    • Percentage-based splits for creators, distributors, and partners.
    • Multi-tier royalties for sublicensing and sub-distributions.
  • Hold & Release Conditions
    • Escrow holds until compliance checks are passed.
    • Time-based releases or milestone completions.
  • Identity Binding
    • All payouts tied to verified Fingerprint ID and DID records.

4. Scheduling & Execution

  • Batch Processing
    • Grouping payouts for efficiency and reduced transaction costs.
  • Real-Time Processing
    • Immediate disbursement for high-priority or milestone-based payouts.
  • Dynamic Scheduling
    • AI-adjusted timing based on market activity and transaction volume.

5. Security & Dispute Handling

  • All payouts verified against compliance and fraud prevention layers before release.
  • DAO-governed dispute resolution triggers hold-and-review processes.
  • Automated rollback in case of failed or reversed transactions.

6. Phase Allocation

Phase 0 — Define payout event triggers, rules hierarchy, and scheduling logic.

Phase 1 — Implement basic payout smart contracts with event listening. Phase 2 — Integrate compliance and identity binding.

Phase 3 — Optimize batch and real-time payout handling.

Phase 4 — Connect DAO dispute resolution.

Phase 5 — Enable advanced AI-driven payout scheduling and scaling.

Next Step: Proceed to Security & Audit Framework for DAL to outline the protective measures, audit processes, and monitoring systems that will safeguard payout operations.

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