> For the complete documentation index, see [llms.txt](https://docs.div.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.div.fun/core-concepts/dividend-tokens.md). # Dividend tokens A dividend token is the unit div.fun produces. It is a standard ERC-20 with one addition: a share of every trade is set aside and distributed to holders as dividends. ### Fee on transfer A div.fun token is a **fee-on-transfer** token. When the token changes hands on its market, a configured share of the amount is retained by the token contract instead of being delivered in full. That retained share is what funds dividends. The fee applies to all trades — on the [bonding curve](/core-concepts/the-bonding-curve.md) and on the token's HyperSwap pool. Ordinary wallet-to-wallet transfers and the protocol's own internal movements are not treated as taxable trades. The exact set of exempt movements is defined in the contract; the intent is that the fee captures trading, not custody. ### What the fee funds The retained share is converted on-chain into the token's [reward asset](/core-concepts/reward-assets.md) and split between two parties: * **Holders** receive their portion, distributed in proportion to their eligible balance. This is the dividend. * **The creator** receives their portion as ongoing income from their token's volume. The creator chooses the split at launch — from 0% to 100% to either side, with a default of 50/50. It is then fixed in the token contract and cannot be changed afterward. ### Fixed at launch Three things about a token are set when it is created and are then immutable: 1. The **reward asset** it pays in. 2. The **dividend share** taken from each trade and how that share is split. 3. The **total supply** and launch mode. This immutability is deliberate. A holder buying a token can read these properties on-chain and know they will not be changed out from under them. A creator cannot launch a token, attract holders, and then quietly redirect the dividends. ### What a dividend token is not * It is **not a staking position.** You do not lock or deposit anything. You hold the token in your own wallet and dividends arrive there. * It is **not a promise of yield.** A token pays from real trading volume. If a token is not traded, it pays nothing. The dividend rate is an outcome of activity, not a guarantee. * It is **not a security issued by div.fun.** Tokens are launched permissionlessly by their creators. div.fun is the launchpad and the distribution infrastructure, not the issuer. ### Reading a token's properties On any token's [page](/for-traders/the-token-page.md) you can see its reward asset, its dividend history, and its curve or market state. These are read from the chain, not asserted by the creator. The numbers are the product — read them before you buy. Continue to [reward assets](/core-concepts/reward-assets.md) to understand what a token can pay in. A dividend token is the unit div.fun produces. It is a standard ERC-20 with one addition: a share of every trade is set aside and distributed to holders as dividends. ### Fee on transfer A div.fun token is a **fee-on-transfer** token. When the token changes hands on its market, a configured share of the amount is retained by the token contract instead of being delivered in full. That retained share is what funds dividends. The fee applies to all trades — on the [bonding curve](/core-concepts/the-bonding-curve.md) and on the token's HyperSwap pool. Ordinary wallet-to-wallet transfers and the protocol's own internal movements are not treated as taxable trades. The exact set of exempt movements is defined in the contract; the intent is that the fee captures trading, not custody. ### What the fee funds The retained share is converted on-chain into the token's [reward asset](/core-concepts/reward-assets.md) and split between two parties: * **Holders** receive their portion, distributed in proportion to their eligible balance. This is the dividend. * **The creator** receives their portion as ongoing income from their token's volume. The creator chooses the split at launch — from 0% to 100% to either side, with a default of 50/50. It is then fixed in the token contract and cannot be changed afterward. ### Fixed at launch Three things about a token are set when it is created and are then immutable: 1. The **reward asset** it pays in. 2. The **dividend share** taken from each trade and how that share is split. 3. The **total supply** and launch mode. This immutability is deliberate. A holder buying a token can read these properties on-chain and know they will not be changed out from under them. A creator cannot launch a token, attract holders, and then quietly redirect the dividends. ### What a dividend token is not * It is **not a staking position.** You do not lock or deposit anything. You hold the token in your own wallet and dividends arrive there. * It is **not a promise of yield.** A token pays from real trading volume. If a token is not traded, it pays nothing. The dividend rate is an outcome of activity, not a guarantee. * It is **not a security issued by div.fun.** Tokens are launched permissionlessly by their creators. div.fun is the launchpad and the distribution infrastructure, not the issuer. ### Reading a token's properties On any token's [page](/for-traders/the-token-page.md) you can see its reward asset, its dividend history, and its curve or market state. These are read from the chain, not asserted by the creator. The numbers are the product — read them before you buy. Continue to [reward assets](/core-concepts/reward-assets.md) to understand what a token can pay in. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.div.fun/core-concepts/dividend-tokens.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.