Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.
In-Depth Explanation
Dividends (or 'real yield' distributions) pay protocol earnings directly to stakers or tokenholders. Examples include GMX's ETH distributions and SUSHI's fee sharing. Dividends provide tangible yield but may have tax implications and require active participation to claim.
Learn More
Related Terms
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.
Staking
Locking tokens in a protocol to earn rewards, secure a network, or gain governance rights.
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Vesting
A schedule that gradually releases tokens to recipients over time, preventing immediate selling.