# Dividends ## What is a dividend yield? Dividend yield refers to the ratio (dividend token amount / circulating supply) expressed as a percentage. This ratio shows the rate circulating supply will increase each time a dividend payout happens. This percentage can also be used to calculate the increase of tokens each holder will receive per dividend relative to their token balance. ## **How often are dividends paid?** Dividends are paid out based on a predetermined cycle referred to as the Dividend Frequency. This frequency is a hard-coded (immutable) value set at 24 hours. This means that every 24 hours dividends are paid out to the respective token holders automatically. ## What is the dividend reduction rate? The Dividend Reduction Rate (DDR) defines the percentage of the dividend amount that will decrease after a period of 30 days. The DDR is a fixed value set at 3%. This means that after every 30 days the dividend amount will decrease by 3%. ## Where are dividends paid to? Dividends are paid out directly to token holders' wallets in HYDRON. Your token amount will increase every day. --- # Agent Instructions: 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: ``` GET https://hydron.gitbook.io/home/dividends.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.