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Program Settlement

Settlement is the final step: converting escrow (chXXX) balances into the actual distributed token allocation for a points program. For projects launching on a chain we do not natively settle the tokens on, Checkpoint uses LayerZero v2 to coordinate distribution across chains seamlessly.

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What is Settlement?

Settlement is the process that happens after TGE (Token Generation Event) where:
  1. The project token launches on one or more blockchains
  2. Sellers settle filled offers, or overdue offers are pushed into default handling
  3. Checkpoint snapshots a program-wide distribution
  4. Escrow holders claim their pro-rata share of tokens, plus any pooled USDC from overdue offers
Escrow tokens conversion is only one way and CANNOT be reversed.

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The Timeline

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Settlement

Settlement is global per points program, not a direct 1:1 or per-offer redemption flow. Settlement tracks a shared distribution snapshot for each pointsId containing:
  • total token amount deposited for the program
  • total USDC accumulated from overdue/defaulted offers
  • total escrow supply at distribution time
  • token ratio used for claims
Once the distribution is settled, claims are calculated pro-rata from that shared snapshot.

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Same-chain settlement

For programs launching on the same chain as Settlement, users claim through claimDistribution(pointsId). On claim:
  1. The claimant transfers their escrow tokens into Settlement
  2. The contract calculates their token share from the program’s tokenRatio
  3. The contract also calculates their share of the pooled USDC from overdue/defaulted offers
  4. Both amounts are sent to the claimant
Users can either claim directly or wait for any announced distribution process by Checkpoint.
Claims are based on your escrow balance relative to the full settlement snapshot for that program.

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Settlement on another chain

For projects launching on a different chain, users must interact with the RemoteSettlement contract on that relevant chain. Checkpoint stores the program distribution snapshot on Settlement. Anyone can then relay the settlement data to the remote settlement contract with sendSettlementMessage(). Just like with the same chain settlement, users can either claim the distribution directly via claimDistribution() or they can wait for an airdrop to their wallet which will be announced by Checkpoint well in advance if done so.
You will need to bridge the escrow tokens to the relevant chain before claiming.

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Defaulted and overdue offers

If a seller misses the settlement deadline, the market calls depositCollateral() with: filledAmount+collateralAmount\text{filledAmount} + \text{collateralAmount} Where:
  • filledAmount is the purchase amount of the offer
  • collateralAmount is the collateral amount in USDC provided by the seller, if applicable
That amount is added to the USDC pool for the entire points program. It is later redistributed pro-rata to escrow holders during claims.