Introduction

The Funding Distribution Model allows you to structure how collected funds are allocated throughout your Core Sale process. It includes defining your funding recipients, setting a sales threshold for fund releases, and configuring distribution percentages by sale phase. 

This ensures controlled fund management and builds trust through transparent, automated disbursement while protecting buyers through automatic refunds if funding goals aren’t met.

Prior Knowledge

Before configuring your Funding Distribution, it's important to be familiar with:

  • What is a Core?
    Explore the different types of cores, their roles in validating transactions, and how they contribute to the security and operation of blockchain ecosystems.
  • LFG Core Sales Program
    Learn how the LFG Core Sale Program helps projects achieve sustainable funding, build decentralized infrastructure, and engage their communities.
  • Referral System
    Be aware of how referral rewards impact fund flows, as they are deducted before distributions.

Having this context will help you design an effective and sustainable funding distribution plan.

Funding Distribution Model Configuration

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Funding Recipients

Define where funds are allocated.

List the wallet addresses and corresponding percentages for each recipient. For example:

  • Your Project: 90%
  • Partner 1: 10%

This ensures that once funds are released, they are automatically distributed to the correct addresses.

Full Release Threshold

Set the minimum sales target required to trigger full fund release.

Sales Threshold: Define the minimum amount your project must raise to ensure sufficient runway for development and operations.

  • Example: If set to $100,000, funds will only be released once your sale hits this amount.

Timeframe: Set the duration of the fundraising window (1–180 days).

  • If your project does not meet the defined sales threshold within this timeframe, all Core Sale purchasers will be automatically refunded.
  • This ensures buyer protection and prevents incomplete funding from moving forward.

This mechanism safeguards both the project and its community, ensuring funds are only released when your minimum capital requirement is secured.

Funding Distribution by Phase

Structure how funds are distributed progressively.

Break down fund releases into multiple phases aligned with your project milestones.

Configure a phase manually using Add Phase.

  • Each phase requires:
  • Phase Name
  • Threshold Amount
  • Percentage Allocation

This phased approach lets you release funds progressively as you hit sales targets, keeping your fund distribution aligned with development milestones.
 

Why It Matters

A well-designed funding distribution model:

  • Enables transparent and automated fund flow
  • Protects both the project and its contributors with automatic refunds if minimum funding is not reached
  • Aligns financial releases with project milestones and builds community and investor trust

By planning your funding structure, you ensure operational flexibility and clear financial accountability while safeguarding your community.

Need Help?

If you need assistance designing your funding distribution strategy, setting sales thresholds, or understanding phased releases, connect with us on LFG Discord. Our team and community are ready to support you.


 

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