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

# Dividend Distribution Mechanism



* All $BUSD the contract gains are split proportionally between the token holders
* To receive dividends a minimum token balance of 100 CATBSC 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
