Distributions
Payments made to security token holders, including dividends, interest, rental income, or liquidation proceeds, automated via smart contracts.
Full Definition
Distributions are payments from issuers to token holders, representing their share of profits, income, or proceeds. On Sails.to, distributions are automated through smart contracts: when an issuer initiates a distribution, the system calculates each holder's share based on the real-time cap table and executes payments directly to their wallets (or traditional accounts for ISIN holders). This eliminates intermediaries and ensures instant, error-free dividend processing.
Why It Matters
Traditional dividend processing is a nightmare. Record dates, ex-dividend dates, payment delays, intermediary banks, currency conversions, tax withholding—every step adds cost and delay. A simple dividend can take weeks to reach international investors.
On Sails.to, distributions are instant and automatic. The smart contract reads the cap table, calculates each holder's pro-rata share, and sends funds directly to their wallet. For investors holding tokens via ISIN in Clearstream, distributions are converted and settled through traditional banking rails.