> For the complete documentation index, see [llms.txt](https://docs.liquidroyalty.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquidroyalty.com/token/dividend-mechanism.md).

# Dividend Mechanism

Dividend Mechanism: Liquid Royalty Protocol - Automated, Transparent, and Investor-Centric Distribution

LiquidRoyalty Protocol intercepts 10% of the merchant's revenue, converts it to stablecoin, and airdrops to royalty token holders. **Royalties are captured at the point of sale, settled weekly, and streamed to holders daily.**

<figure><picture><source srcset="/files/DmRxDXdx9gUBsXRol0Zs" 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&amp;token=da407dd9-f6d4-4efc-b629-df03ceb5d0b6" alt=""></picture><figcaption></figcaption></figure>

<div data-full-width="true"><figure><picture><source srcset="/files/nxsuaOpbAbNdjWbxIago" 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&amp;token=a32eb664-43e7-4322-b3e6-a303340e410c" alt=""></picture><figcaption><p>Weekly settlement · daily stream</p></figcaption></figure></div>

LiquidRoyalty Protocol deploys an audited stablecoin airdrop contract published by Thirdweb; as contract owner, LiquidRoyalty Protocol charges 0.1% of dividends distributed.