Split Distribution Function (SDF)

The Split Distribution Function determines the proportion of funds that flow to a receiver share when a Prism Offer receives an incoming payment.

  1. The relative SDF interprets each member's split field as a relative split determined by normalizing user-provided integers 1<x<1000 for a resulting precision of 99.99%.
  2. An SDF of discrete would instruct the plugin to interpret the member split field as discrete units. This would be useful in shopping cart scenarios. Upon checkout, the cart application would call createprism, setting each prism member to the BOLT12 offers representing bulk purchases (e.g., 144 items) from downstream suppliers. The split field in each member would be set to the quantity of that respective item.
  3. Mandatory payouts (i.e., liability): the standard SDF would be overridden to assign 100% of incoming bitcoin to a receiver share (user-defined, default FIFO). For mandatory payouts, BOLT12 member offer SHOULD have an amount specified, but can rely on the splits threshold value the offer amount is not specified. Once paid out, the mandatory receiver share is removed from the prism.
  4. An SDF could assign a larger weight to Prism Offers that were created more recently, allowing older prisms to receive less overall share as time progresses. This would incentivize active content creation.