Budget Allocation
Once funds are deposited into escrow, the operator assigns a portion of the budget to each approved streamer. This is the allocation step — it commits a specific amount to a specific streamer under defined terms.
What Happens During Allocation
The operator selects a deposit and specifies:
- Which streamer receives the allocation (identified by wallet address)
- How much of the deposit to allocate
- How many streaming slots the allocation covers (e.g. 4 weekly streams)
- Per-slot amounts — either equal (e.g. 250 USDC per slot) or variable
- Deadline — the date after which unclaimed slots become refundable
The contract verifies the operator has sufficient unallocated funds and records the allocation on-chain
A unique Allocation ID is generated as the permanent reference
Custody Implications
| Question | Answer |
|---|---|
| Can the operator redirect allocated funds? | No. Once allocated, funds are committed to the specified streamer's payout schedule |
| Can the operator cancel an allocation? | Not directly. The operator must wait for the deadline, then reclaim only the unclaimed portion |
| Can the streamer access funds before completing work? | No. Funds are released only upon valid proof of fulfillment per slot |
| What happens if the operator allocates to the wrong streamer? | The allocation is permanent until the deadline. Funds cannot be reassigned before then |
| Is the allocation publicly visible? | Yes. The commitment is recorded as a blockchain transaction |
Payout Schedules
Equal Payouts
All slots pay the same amount. For a 1,000 USDC allocation across 4 slots:
| Slot | Amount |
|---|---|
| Week 1 | 250 USDC |
| Week 2 | 250 USDC |
| Week 3 | 250 USDC |
| Week 4 | 250 USDC |
Variable Payouts
Each slot can have a different amount, allowing for performance-based or tiered structures:
| Slot | Amount |
|---|---|
| Week 1 | 100 USDC |
| Week 2 | 300 USDC |
| Week 3 | 200 USDC |
| Week 4 | 400 USDC |
The sum of all slot amounts always equals the total allocation. This is enforced at the time the allocation is created.
The Deadline (Timelock)
Every allocation includes a deadline. This serves two purposes:
- Before the deadline: The streamer can claim payouts for completed slots. The operator cannot reclaim any allocated funds.
- After the deadline: The operator can reclaim any unclaimed slot amounts. The streamer can no longer claim those slots.
The deadline is set by the operator at allocation time and is recorded immutably on-chain. Neither party can extend or shorten it after the fact.
How Payout Commitments Are Secured
Per-slot payout amounts are committed using a cryptographic structure (Merkle tree) where:
- The full schedule is computed off-chain and a single compact fingerprint (the Merkle root) is stored on-chain
- When a streamer claims a slot, the contract mathematically verifies that the claimed amount matches the original commitment
- This means the operator cannot retroactively change what was promised for any slot
This provides the streamer with a cryptographic guarantee that the terms of the deal — amount per slot — cannot be altered after the allocation is created.