> For the complete documentation index, see [llms.txt](https://hydron.gitbook.io/home/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hydron.gitbook.io/home/dividends.md).

# 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.