# Dividend Mechanism

LiquidRoyalty Protocol intercepts 10% of the merchant's revenue, convert to stablecoin and airdrop to royalty token holders:

<figure><picture><source srcset="https://467792424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fcsc5wbONKMuHeGeM8UqE%2Fuploads%2FXkuDhJEEkbGuCxTse11O%2Fdividend_mechanism2_dark.png?alt=media&#x26;token=cc2039ce-1d12-4611-b4e9-cb432e778e26" media="(prefers-color-scheme: dark)"><img src="https://467792424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fcsc5wbONKMuHeGeM8UqE%2Fuploads%2FFdflNgFUn5AJTGQ04Dpd%2Fdividend_mechanism2_light.png?alt=media&#x26;token=da407dd9-f6d4-4efc-b629-df03ceb5d0b6" alt=""></picture><figcaption></figcaption></figure>

<div data-full-width="true"><figure><picture><source srcset="https://467792424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fcsc5wbONKMuHeGeM8UqE%2Fuploads%2FgtnVYntERge7rrREBLEY%2Fdividend_mechanism1_dark.png?alt=media&#x26;token=60723ed4-f116-42ab-8671-2231affc6e80" media="(prefers-color-scheme: dark)"><img src="https://467792424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fcsc5wbONKMuHeGeM8UqE%2Fuploads%2FUMxcOSGYzb3oRryGlZdw%2Fdividend_mechanism1_light.png?alt=media&#x26;token=a32eb664-43e7-4322-b3e6-a303340e410c" alt=""></picture><figcaption><p>monthly fund flow</p></figcaption></figure></div>

LiquidRoyalty Protocol deploys an audited stablecoin aircontract that is published by Thirdweb, as contract owner LiquidRoyalty Protocol charges 0.1% of dividend distributed.