On-chain dividend token Ethereum systems replace the traditional off‑chain claim portal with transparent, self‑executing logic inside a smart contract. Immute implements exactly this model: every buy or sell on the IMT curve triggers a 10 % fee that is instantly allocated to all current IMT holders via the contract’s dividend accounting. The system lives on Sepolia testnet today, with a mainnet launch coming soon.
The profitPerShare accounting model
At the core of Immute’s dividend engine is a profitPerShare accumulator. When a trade occurs, the contract adds the fee to a global dividend pool and then updates a profitPerShare value:
profitPerShare = totalDividendPool / tokenTotalSupply
Each holder’s unclaimed dividend is simply:
holderDividend = holderBalance × profitPerShare - alreadyClaimed
This formula is deterministic and gas‑efficient, allowing the contract to compute payouts for thousands of holders without iterating over a list. The approach mirrors the CMTAT standard’s on‑chain dividend calculations described in recent literature [1], and it aligns with the snapshot‑based distribution methods highlighted by RWA.io to eliminate timing manipulation [2].
Because the accounting is performed on‑chain, any wallet that holds IMT can query getDividendRemuneration() to see its exact entitlement. No server, no KYC portal, no trusted intermediary—just a view call.
Withdraw vs. Reinvest: two paths for holders
Immute exposes two contract functions that give holders flexibility over their dividend distributions.
withdraw() – Allows a holder to transfer the accumulated IMT dividend directly to their wallet. The call triggers an internal transfer of the calculated amount from the contract’s balance to the sender. This mirrors the opt‑in ETH dividend model pioneered by BTCS, where participants can claim payouts as they accrue [3]. In Immute’s case, the payout is in IMT, reinforcing the token’s utility rather than a speculative claim.
reinvest() – Automatically converts the holder’s unclaimed dividend into additional IMT by purchasing on‑curve. The function calls the curve’s buy() method using the dividend amount as the input, then updates the holder’s balance and profitPerShare references accordingly. This is analogous to the compounding mechanisms seen in modern dividend contracts, enabling holders to increase their exposure without manually claiming and re‑buying [1].
Both functions are permissionless: any external account can invoke them at any time. This design removes the need for a centralized “claim now” button and ensures dividends are always accessible, even if a holder forgets to interact for months.
Trustless distribution: why on‑chain logic eliminates centralized claim portals
Traditional dividend schemes often require a trusted party to compute eligibility, withhold taxes, and distribute payouts through a web portal. On‑chain dividend token Ethereum implementations replace that workflow with code that runs identically on every node.
Because the contract’s state is public and immutable, participants can verify the dividend calculation at any block height. The profitPerShare updates are emitted as events, allowing off‑chain dashboards to track accruals without ever needing to trust a third‑party server. This mirrors the real‑time distribution model for tokenized real‑estate rental income described by RWA.io, where rent is transferred to holders immediately upon collection [2].
The removal of an off‑chain portal also mitigates single points of failure. If a company’s website goes offline, shareholders still receive dividends through the contract. Immute inherits this resilience: as long as the Ethereum node stays synced, the dividend flow never stops.
How Immute implements the model on Sepolia
Immute is currently live on Sepolia testnet (chainId 11155111). The IMT V8 contract (0xB575A8760c66F09a26A03bc215D612EA2486373C) manages the token supply, the profitPerShare accumulator, and the two withdrawal pathways. The FeederV9 contract (0xa87e7c25c2f754C7D6bFc9b4472E0c36096E4bF6) acts as the entry point for external integrations, routing 1 % of every payment onto the curve (which pays the 10 % fee to all IMT holders) while forwarding the remaining 99 % to the product treasury.
To start experimenting:
- Grab free Sepolia ETH from a faucet such as https://sepolia-faucet.pk910.de/ or https://www.alchemy.com/faucets/ethereum-sepolia.
- Connect your wallet (MetaMask, Rainbow, etc.) to Sepolia and navigate to https://immute.io.
- Purchase IMT, trigger the fee, and watch the on‑curve dividend accumulate.
- Use
withdraw()to claim your IMT, or callreinvest()to compound your position.
Testing these functions on testnet lets you verify the exact arithmetic without risking real funds. All transactions are visible on Sepolia Etherscan, providing full transparency over the accrual and claim process.
Planned integrations and the Feeder primitive
Upcoming platforms—Neptime.io, Valiep.com, Discovire.com, ByteOdyssey—will route payments through the Feeder contract. Each payment will automatically split: 1 % hits the curve, feeding the dividend pool, while 99 % goes to the platform’s treasury. This creates a product‑powered reward token where the dividend flow is tied directly to real usage rather than speculation.
Because the Feeder uses the same on‑chain dividend token Ethereum architecture, the 10 % fee is distributed pro‑rata to every IMT holder at the moment of each transaction. There is no lag, no off‑chain ledger, and no manual claim step. Holders simply watch their balance grow as the ecosystem expands.
Conclusion
Immute demonstrates that on‑chain dividend token Ethereum design can replace centralized claim portals with transparent, self‑executing contract logic. By using a profitPerShare accumulator, exposing withdraw() and reinvest() functions, and routing all fee flows through the Feeder primitive, Immute delivers a trustless dividend mechanism that scales with usage. The system is live on Sepolia testnet today, inviting developers and builders to test the mechanics, validate the economics, and prepare for mainnet launch.
References
[1] “Equity Tokenization: How to Pay Dividend On‑Chain Using CMTAT.” Taurus HQ. https://www.taurushq.com/blog/equity-tokenization-how-to-pay-dividend-on-chain-using-cmtat/
[2] “On‑Chain Dividends Distribution Methods.” RWA.io. https://www.rwa.io/post/on-chain-dividends-distribution-methods
[3] “Blockchain Dividends ETH On‑Chain Rewards.” OKX Learn. https://www.okx.com/learn/blockchain-dividends-eth-on-chain-rewards
[4] “Profits.” InvestorConnectUS. https://investorconnectus.com/profits/
[5] Schmiste et al., 2023. “Optimizing Gas Consumption for On‑Chain Dividend Transfers.” https://schmiste.github.io/digfin23.pdf
[6] “Revenue‑Sharing Tokens Explained.” Blockchain App Factory. https://www.blockchainappfactory.com/blog/revenue-sharing-tokens-explained/
[7] “Dividend Tokens.” Unblock. https://unblock.net/dividend-tokens/
[8] “Crypto Dividends.” HyroTrader. https://www.hyrotrader.com/blog/crypto-dividends/
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