# Dividend Distribution Mechanism

The dividend mechanism incentivizes token holders to hold in order to earn dividends from the transactions (buys and sells).

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The dividends are not dependent on the price of BabyTether. They are based purely on the volume and proportional to the BabyTether amount you hold in your wallet.
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* All $USDT the contract gains are split proportionally between the token holders
* To receive dividends a minimum token balance of 200,000 BabyTether is required to be held in a wallet
* The contract keeps track of all the dividends due to each holder in a list
* Every transaction processes a certain number of users from the list
* The number of holders processed through each transaction is dynamic and based on transaction size
* Holders will receive dividends from the queue based on their position in the list
* It’s a fair system, fully automated