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Token Distribution

Understanding how tokens are distributed when trading is enabled.

Distribution Breakdown​

When a creator enables trading:

RecipientTokensPercentagePurpose
Creator80,00080%Retain majority ownership
Uniswap Pool20,00020%Initial liquidity
Total100,000100%Fixed supply

Why 80/20 Split?​

Creator Benefits (80%)​

  • Maintain controlling stake
  • Benefit from price appreciation
  • Sell gradually over time

Pool Benefits (20%)​

  • Enable immediate trading
  • Provide liquidity depth
  • Establish price discovery

Distribution Flow​

1. Creator clicks "Enable Trading"
2. NFT transferred to SongVault (permanent)
3. SongToken contract deployed
4. 100,000 tokens minted
5. 80,000 tokens → Creator wallet
6. 20,000 tokens → Uniswap V4 pool

Smart Contract Code​

function enableTrading(uint256 tokenId) external {
    // Lock NFT
    songNFT.transferFrom(msg.sender, address(this), tokenId);

    // Deploy token
    SongToken token = new SongToken(tokenId);

    // Distribute
    token.transfer(msg.sender, 80_000 * 10**18);
    token.transfer(pool, 20_000 * 10**18);
}

Initial Pool State​

The Uniswap pool starts with:

ETH: 0
Tokens: 20,000

First buyer sets the initial price.