# Distribution

Tokens are distributed from the issuer treasury to KYC-verified investors on their preferred live chain (Plume, Base, or Canton). Only wallets registered in the ERC-3643 Identity Registry — verified via SumSub and synchronized from the ICP KYC Registry — can receive tokens.

# Distribution Flow

sequenceDiagram
    participant INV as Investor
    participant KYC as ICP KYC Registry
    participant II as Issuer Interface
    participant ML as Master Ledger
    participant CF as Chain Fusion
    participant EVM as EVM Chain (Plume / Base / Canton)

    INV->>KYC: Complete KYC via SumSub
    KYC-->>INV: Verified

    INV->>II: Purchase Request (USDC)
    II->>KYC: Verify Status
    KYC-->>II: Verified

    INV->>II: Select Target Chain
    II->>ML: distribute(investor, amount, chain)

    ML->>ML: Reserve from Treasury
    ML->>CF: request_mint(investor, amount, chain)
    CF->>EVM: Mint ERC-3643 Tokens
    EVM-->>CF: Confirmed
    CF->>ML: confirm_distribution
    ML-->>INV: Tokens on selected chain

# Investor Onboarding

# KYC Verification

Before receiving tokens, investors must complete KYC/AML verification through SumSub:

flowchart TB
    START[Start Onboarding] --> SUMSUB[SumSub Verification]

    subgraph SumSub
        DOC[Document Upload]
        FACE[Liveness Check]
        SOF[Source of Funds]
        AML[Sanctions Screening]
    end

    SUMSUB --> DOC --> FACE --> SOF --> AML

    AML --> RESULT{Approved?}
    RESULT -->|Yes| BACKEND[Issuer Backend]
    RESULT -->|No| REJECT[Rejected]

    BACKEND --> KYC[ICP KYC Registry]
    KYC --> CF[Chain Fusion]
    CF --> ERC[ERC-3643 Identity Registry on EVM]

# Investor Requirements

Requirement	Standard
Identity verification	KYC/AML via SumSub (photo ID, liveness check, source of funds)
Qualification status	Accredited or qualified investor per applicable regime
Wallet whitelisting	Verified wallet registered in ERC-3643 Identity Registry
Minimum ticket size	EUR/USD 100,000 per issuance (varies by compartment)
Jurisdiction	Non-US persons; select non-US accredited investors by arrangement

# Chain Selection

Investors choose their preferred live chain for receiving tokens:

flowchart TB
    INV[Investor] --> SELECT{Select Chain}

    SELECT --> PLUME[Plume]
    SELECT --> BASE[Base]
    SELECT --> CANTON[Canton]

# Chain Requirements

Chain	Address Format	Example
Plume	0x + 40 hex	`0x742d35Cc6634C0532925a3b844Bc9...`
Base	0x + 40 hex	`0x742d35Cc6634C0532925a3b844Bc9...`
Canton	0x + 40 hex	`0x742d35Cc6634C0532925a3b844Bc9...`

All chains use EVM-compatible addresses. The wallet must be registered in the ERC-3643 Identity Registry on the target chain before tokens can be received.

# Distribution Process

Distribution involves Chain Fusion for cross-chain minting from the ICP Master Ledger:

sequenceDiagram
    participant II as Issuer Interface
    participant ML as Master Ledger
    participant CF as Chain Fusion
    participant EVM as EVM Chain

    II->>ML: distribute(token, investor, amount, chain)
    ML->>ML: Reserve tokens from treasury
    ML->>CF: request_mint(...)

    CF->>CF: Build ERC-3643 mint transaction
    CF->>CF: Request threshold signature
    CF->>EVM: Submit signed mint TX

    EVM-->>CF: TX Hash
    CF->>CF: Wait for finality
    EVM-->>CF: Confirmed

    CF->>ML: confirm_mint(request_id, tx_hash)
    ML->>ML: Complete distribution
    ML-->>II: Success

# Distribution Types

# Primary Distribution

Initial distribution to investors during the offering period. Subscription in USDC; ERC-3643 tokens delivered to verified wallet.

type PrimaryDistribution = record {
    token_id : TokenId;
    investor : Principal;
    amount : nat;
    target_chain : Chain;
    target_address : Text;
    purchase_price : nat;           // In USDC
    subscription_date : Timestamp;
};

# Secondary Distribution

Issuer distributing from treasury after initial offering:

type SecondaryDistribution = record {
    token_id : TokenId;
    recipient : Principal;
    amount : nat;
    target_chain : Chain;
    target_address : Text;
    reason : DistributionReason;
};

type DistributionReason = variant {
    AdditionalPurchase;
    Replacement;            // Lost wallet recovery
    Transfer;               // Internal transfer
};

# Batch Distribution

For efficiency, multiple distributions can be batched per chain:

flowchart LR
    BATCH[Batch Request] --> VALIDATE[Validate All]
    VALIDATE --> GROUP[Group by Chain]

    GROUP --> PLUME_BATCH[Plume Batch]
    GROUP --> BASE_BATCH[Base Batch]
    GROUP --> CANTON_BATCH[Canton Batch]

    PLUME_BATCH --> EXEC1[Execute]
    BASE_BATCH --> EXEC2[Execute]
    CANTON_BATCH --> EXEC3[Execute]

# Batch Request

type BatchDistributeArgs = record {
    token_id : TokenId;
    distributions : vec DistributionEntry;
};

type DistributionEntry = record {
    recipient : Principal;
    amount : nat;
    target_chain : Chain;
    target_address : Text;
};

# Address Verification

Before distribution, addresses are verified against the ERC-3643 Identity Registry:

flowchart TB
    ADDR[Recipient Address] --> CHECK1{Valid Format?}
    CHECK1 -->|No| E1[Error: Invalid Format]
    CHECK1 -->|Yes| CHECK2{Registered in Identity Registry?}

    CHECK2 -->|No| E2[Error: Not Whitelisted]
    CHECK2 -->|Yes| CHECK3{Matches KYC Principal?}

    CHECK3 -->|No| E3[Error: Address Mismatch]
    CHECK3 -->|Yes| OK[Proceed with Distribution]

# Error Handling

# Distribution Errors

type DistributionError = variant {
    NotAuthorized;
    TokenNotFound;
    TokenNotActive;
    InsufficientTreasury;
    RecipientNotKyc;
    InvalidAddress : Text;
    ChainNotSupported;
    AddressNotWhitelisted;
    AmountTooLow;
    AmountTooHigh;
    ChainFusionError : Text;
    InternalError : Text;
};

# Retry Logic

flowchart TB
    DIST[Distribution] --> SUBMIT[Submit to Chain]
    SUBMIT --> RESULT{Success?}

    RESULT -->|Yes| DONE[Complete]
    RESULT -->|No| CHECK{Retryable?}

    CHECK -->|Yes| RETRY[Retry with Backoff]
    RETRY --> SUBMIT

    CHECK -->|No| FAIL[Mark Failed]
    FAIL --> REFUND[Refund Treasury]

Failed distributions automatically refund the treasury reserve.