diff --git a/src/escrow/escrow_contract.cairo b/src/escrow/escrow_contract.cairo
index 0a86256..e1a2e7a 100644
--- a/src/escrow/escrow_contract.cairo
+++ b/src/escrow/escrow_contract.cairo
@@ -1,5 +1,7 @@
 #[starknet::contract]
 mod EscrowContract {
+    use starknet::event::EventEmitter;
+    use crate::interface::ierc20::{IERC20Dispatcher, IERC20DispatcherTrait};
     use core::num::traits::Zero;
     use starknet::{ContractAddress, storage::Map, contract_address_const};
     use starknet::storage::{StoragePointerReadAccess, StoragePointerWriteAccess, StoragePathEntry};
@@ -11,19 +13,17 @@ mod EscrowContract {
 
     #[storage]
     struct Storage {
+        escrow_id: u64,
         depositor: ContractAddress,
         beneficiary: ContractAddress,
         arbiter: ContractAddress,
+        token_address: ContractAddress,
         time_frame: u64,
         worth_of_asset: u256,
-        client_address: ContractAddress,
-        provider_address: ContractAddress,
         balance: u256,
         depositor_approve: Map::<ContractAddress, bool>,
         arbiter_approve: Map::<ContractAddress, bool>,
-        // Track whether an escrow ID has been used
         escrow_exists: Map::<u64, bool>,
-        // Store escrow amounts
         escrow_amounts: Map::<u64, u256>,
         deposit_time: Map::<u64, u64>,
         // Track the funded escrows. Start as false and is setted to true when successfully funds.
@@ -33,8 +33,11 @@ mod EscrowContract {
     #[event]
     #[derive(Drop, starknet::Event)]
     pub enum Event {
+        ApproveTransaction: ApproveTransaction,
+        EscrowEarningsDistributed: EscrowEarningsDistributed,
         DepositorApproved: DepositorApproved,
         ArbiterApproved: ArbiterApproved,
+
         EscrowInitialized: EscrowInitialized,
         EscrowFunded: EscrowFunded,
         EscrowRefunded: EscrowRefunded,
@@ -49,6 +52,13 @@ mod EscrowContract {
     }
 
     #[derive(Drop, starknet::Event)]
+    struct EscrowEarningsDistributed {
+        escrow_id: u64,
+        release_address: ContractAddress,
+        amount: u256
+    }
+
+    // New event for escrow initialization
     pub struct ArbiterApproved {
         arbiter: ContractAddress,
         escrow_id: u64,
@@ -65,6 +75,7 @@ mod EscrowContract {
         timestamp: u64,
     }
 
+
     #[derive(Drop, starknet::Event)]
     pub struct EscrowRefunded {
         escrow_id: u64,
@@ -109,6 +120,7 @@ mod EscrowContract {
 
     #[abi(embed_v0)]
     impl EscrowImpl of IEscrow<ContractState> {
+    
         fn get_escrow_details(ref self: ContractState, escrow_id: u64) -> Escrow {
             // Validate if the escrow exists
             let exists = self.escrow_exists.read(escrow_id);
@@ -117,6 +129,7 @@ mod EscrowContract {
             let client_address = self.client_address.read();
             let provider_address = self.provider_address.read();
             let amount = self.escrow_amounts.read(escrow_id);
+
             let balance = self.balance.read();
 
             let escrow = Escrow {
@@ -300,6 +313,7 @@ mod EscrowContract {
             // Check that the correct amount was sent.
             assert(amount >= expected_amount, 'Amount is less than expected');
 
+
             // First modify in-contract state to avoid reentrancy attacks
             // Set escrow to funded
             self.escrow_funded.write(escrow_id, true);
@@ -310,6 +324,7 @@ mod EscrowContract {
 
             // Use the OpenZeppelin ERC20 contract to transfer the funds from the caller address to
             // the escrow contract.
+
             let token = IERC20Dispatcher { contract_address: token_address };
             token.transfer_from(caller_address, contract_address, amount);
 
@@ -362,6 +377,7 @@ mod EscrowContract {
             self.depositor.read()
         }
 
+
         fn get_beneficiary(self: @ContractState) -> ContractAddress {
             self.beneficiary.read()
         }
@@ -382,4 +398,43 @@ mod EscrowContract {
             (depositor_approved, arbiter_approved)
         }
     }
+
+    #[external(v0)]
+    fn distribute_escrow_earnings(
+        ref self: ContractState, escrow_id: u64, release_address: ContractAddress
+    ) {
+        assert(self.escrow_id.read() == escrow_id, 'Escrow Contract is not valid');
+
+        let depositor_approved = self.depositor_approve.entry(self.depositor.read()).read();
+        let arbiter_approved = self.arbiter_approve.entry(self.arbiter.read()).read();
+        // Verify both approvals
+        assert(depositor_approved && arbiter_approved, 'Escrow not approved');
+
+        //Verify token validity
+        let token_address = self.token_address.read();
+        assert(!token_address.is_zero(), 'Invalid token address');
+
+        //Verify if funds were already distributed or there is enough balance
+        assert(self.balance.read() > 0, 'Funds already distributed');
+        assert(self.balance.read() >= self.worth_of_asset.read(), 'Insufficient funds');
+
+        // Create token dispatcher
+        let token_contract = IERC20Dispatcher { contract_address: token_address };
+        let depositor = self.depositor.read();
+
+        // Transfer tokens
+        let transfer_result = token_contract
+            .transfer_from(depositor, release_address, self.worth_of_asset.read());
+        assert(transfer_result, 'Token transfer failed');
+
+        // Update balance after successful transfer
+        self.balance.write(0);
+
+        self
+            .emit(
+                EscrowEarningsDistributed {
+                    escrow_id, release_address, amount: self.worth_of_asset.read()
+                }
+            );
+    }
 }
diff --git a/src/interface.cairo b/src/interface.cairo
index 1f03bf5..a4b675d 100644
--- a/src/interface.cairo
+++ b/src/interface.cairo
@@ -1,2 +1,3 @@
+pub mod ierc20;
 pub mod iescrow;
 pub mod ierc20;
diff --git a/src/interface/iescrow.cairo b/src/interface/iescrow.cairo
index c33abe5..32fa951 100644
--- a/src/interface/iescrow.cairo
+++ b/src/interface/iescrow.cairo
@@ -10,7 +10,10 @@ pub trait IEscrow<TContractState> {
         provider_address: ContractAddress,
         amount: u256,
     );
+
+    fn approve(ref self: TContractState, benefeciary: ContractAddress);
     fn get_escrow_details(ref self: TContractState, escrow_id: u64) -> Escrow;
+
     fn get_depositor(self: @TContractState) -> ContractAddress;
     fn get_beneficiary(self: @TContractState) -> ContractAddress;
     fn refundTimer(ref self: TContractState, escrow_id: u64, refund_period: u64);