> 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/getting-started/how-div.fun-works.md). # How div.fun works Every token on div.fun follows the same lifecycle, from launch to dividends. This page describes that lifecycle end to end. Each step has its own page in [Core concepts](/core-concepts/dividend-tokens.md). ### 1. A creator launches a token A creator opens the launch wizard, sets a name, symbol, total supply, image, description, and socials, then chooses a **reward asset** — the asset in which the token will pay dividends. This can be HYPE, a stablecoin, or a tokenized stock. The creator also chooses a **launch mode** (bonding curve or direct liquidity), a **dividend tax** (1–10% of each trade's volume, default 5%), and a **creator/holders split** that determines how the collected tax is divided between the creator and token holders (default 50/50). Launching costs a 0.5 HYPE launch fee plus gas. The token is a fee-on-transfer ERC-20. The reward asset, dividend tax, and split are fixed in the token contract at launch and cannot be changed afterward. ### 2. The token trades on a bonding curve Most tokens launch on a **bonding curve**. The curve is an automated market that prices the token from a formula: early buys are cheaper, later buys cost more. There is no order book and no counterparty — the curve always quotes a price. Buyers pay HYPE into the curve and receive tokens; sellers return tokens and receive HYPE. The dividend tax is active from the first curve trade — every buy and sell on the curve sets aside the token's configured share for distribution. A separate 0.5% protocol fee applies to bonding-curve trades. The curve accumulates HYPE as people buy. ### 3. The token graduates When the curve reaches its target, the token **graduates**. The HYPE collected by the curve, together with a matching amount of tokens, is deposited as liquidity into a [HyperSwap](https://hyperswap.exchange) V2 pool. The LP tokens are burned (sent to the dead address), permanently locking the liquidity. From this point the token trades on the open market like any other HyperEVM token. Graduation is automatic. It happens the moment the curve target is hit, on the trade that hits it. ### 4. Every trade pays dividends On every trade — whether on the bonding curve or on a HyperSwap pool — the token sets aside its configured dividend tax. That share is converted on-chain into the token's reward asset and split between two parties per the creator/holders split set at launch: * the **holders**, who receive the holders' portion as dividends; * the **creator**, who earns the creator's portion of their token's volume. ### 5. Dividends are pushed to holders div.fun uses a **push** model. Holders never click "claim". A keeper service continuously distributes the accumulated reward asset to every eligible holder, in proportion to their balance, by sending it directly to their wallets. Dividends in HYPE or a stablecoin arrive as a normal token transfer. Dividends in a tokenized stock settle through HyperCore and arrive as the stock's ERC-20. ### The result A trader watching the board sees, per token, how much has been paid, in what asset, and over what window. A holder sees the reward asset appear in their wallet without doing anything. A creator sees their token's volume turn into income for the people who hold it — and for themselves. The rest of these docs explain each piece in detail. If you are here to trade, continue to [the board](/for-traders/the-board.md). If you are here to launch, continue to [the launch overview](/for-creators/launching-a-token.md). Every token on div.fun follows the same lifecycle, from launch to dividends. This page describes that lifecycle end to end. Each step has its own page in [Core concepts](/core-concepts/dividend-tokens.md). ### 1. A creator launches a token A creator opens the launch wizard, sets a name, symbol, total supply, image, description, and socials, then chooses a **reward asset** — the asset in which the token will pay dividends. This can be HYPE, a stablecoin, or a tokenized stock. The creator also chooses a **launch mode** (bonding curve or direct liquidity), a **dividend tax** (1–10% of each trade's volume, default 5%), and a **creator/holders split** that determines how the collected tax is divided between the creator and token holders (default 50/50). Launching costs a 0.5 HYPE launch fee plus gas. The token is a fee-on-transfer ERC-20. The reward asset, dividend tax, and split are fixed in the token contract at launch and cannot be changed afterward. ### 2. The token trades on a bonding curve Most tokens launch on a **bonding curve**. The curve is an automated market that prices the token from a formula: early buys are cheaper, later buys cost more. There is no order book and no counterparty — the curve always quotes a price. Buyers pay HYPE into the curve and receive tokens; sellers return tokens and receive HYPE. The dividend tax is active from the first curve trade — every buy and sell on the curve sets aside the token's configured share for distribution. A separate 0.5% protocol fee applies to bonding-curve trades. The curve accumulates HYPE as people buy. ### 3. The token graduates When the curve reaches its target, the token **graduates**. The HYPE collected by the curve, together with a matching amount of tokens, is deposited as liquidity into a [HyperSwap](https://hyperswap.exchange) V2 pool. The LP tokens are burned (sent to the dead address), permanently locking the liquidity. From this point the token trades on the open market like any other HyperEVM token. Graduation is automatic. It happens the moment the curve target is hit, on the trade that hits it. ### 4. Every trade pays dividends On every trade — whether on the bonding curve or on a HyperSwap pool — the token sets aside its configured dividend tax. That share is converted on-chain into the token's reward asset and split between two parties per the creator/holders split set at launch: * the **holders**, who receive the holders' portion as dividends; * the **creator**, who earns the creator's portion of their token's volume. ### 5. Dividends are pushed to holders div.fun uses a **push** model. Holders never click "claim". A keeper service continuously distributes the accumulated reward asset to every eligible holder, in proportion to their balance, by sending it directly to their wallets. Dividends in HYPE or a stablecoin arrive as a normal token transfer. Dividends in a tokenized stock settle through HyperCore and arrive as the stock's ERC-20. ### The result A trader watching the board sees, per token, how much has been paid, in what asset, and over what window. A holder sees the reward asset appear in their wallet without doing anything. A creator sees their token's volume turn into income for the people who hold it — and for themselves. The rest of these docs explain each piece in detail. If you are here to trade, continue to [the board](/for-traders/the-board.md). If you are here to launch, continue to [the launch overview](/for-creators/launching-a-token.md). --- # 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/getting-started/how-div.fun-works.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.