> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vibetoken.cn/llms.txt
> Use this file to discover all available pages before exploring further.

# Vibe Token Revenue Share: How Distributions Are Paid

> Every time the software generates revenue, Vibe Token automatically splits the founder's designated share proportionally across all token holders.

Holding tokens means receiving a share of every revenue event the business records. You don't need to claim distributions, submit invoices, or log in on the right day. Every time a customer pays the founder, the system automatically calculates your share and sends it to you based on how many tokens you hold relative to total circulating supply.

## The Distribution Formula

Each revenue event `dR` generates a distribution pool `D`, which is split across all token holders proportionally.

**Step 1 — Calculate the distribution pool:**

```
D = α × dR
```

**Step 2 — Calculate your payout:**

```
your payout = (your tokens ÷ S) × D
```

Or equivalently, find the per-token rate first:

```
payout per token = D ÷ S
your payout = your tokens × (D ÷ S)
```

| Variable | Meaning                                                                 |
| -------- | ----------------------------------------------------------------------- |
| `α`      | Revenue share — set permanently by the founder at launch                |
| `dR`     | The revenue event that triggered this distribution                      |
| `S`      | Total circulating supply of issued tokens at the moment of distribution |

## Worked Example

* You hold **200 tokens**
* Total circulating supply S = **5,000 tokens**
* α = 0.20, revenue event dR = **\$1,000**

**Distribution pool:** D = 0.20 × $1,000 = **$200\*\*

**Per-token rate:** $200 ÷ 5,000 = **$0.04 per token\*\*

**Your payout:** 200 × $0.04 = **$8.00\*\*

The other 4,800 token holders collectively receive the remaining \$192.00, each in proportion to their own holdings.

## When Your Share Changes

Your per-token payout is not fixed — it moves with circulating supply S.

**Supply grows** when new tokens are minted (because more referrals are generating revenue and earning tokens). As S increases, the per-token payout `D ÷ S` shrinks. You hold the same number of tokens, but each token represents a smaller fraction of the total.

**Supply shrinks** when tokens are burned during exits. As S decreases, the per-token payout `D ÷ S` grows. Holders who stay while others exit receive a larger share of each future distribution.

Your share is always proportional to total issued supply at the moment of each distribution — it is never locked in or guaranteed at a fixed rate.

## Treasury Tokens and Distributions

Treasury tokens held by the founder do **not** participate in distributions. Only tokens that have been issued — earned through referrals or granted to contributors — receive a share of revenue events. This means the founder's unallocated treasury does not dilute distributions to contributors.

## Exit Queue Priority

When token holders are queued for exit, they receive their exit value **first** from each distribution, before remaining holders receive their pro-rata share. The exit queue is funded directly by the same distribution pool. This means active exits slightly reduce the distribution available to continuing holders during the period the queue is being cleared — but no separate reserve pool is required to fund exits.

## Distribution Frequency

Distributions happen automatically with every recorded revenue event. There is no batching, no monthly schedule, and no manual claim process. If the business records five revenue events in a single day, five distributions flow to token holders that day.

<Info>
  The more revenue the business generates, the more distributions flow to holders. Distributions are not capped. A business that grows from $10,000 MRR to $100,000 MRR sends ten times as much distribution value per event (assuming the same α and token supply). Your tokens are a direct claim on the ongoing productive output of the business.
</Info>