# Automatic Dividend Distribution

The functionality of distributing resources to TUP token holders was previously mentioned. Here, we provide more details on how it works.

Any event that involves sending the native cryptocurrency token to the smart contract address of the TUP token will reserve this value for distribution among investors and Employer contract. But instead of directly distributing the value in the native token, the contract mints new tokens for TUP holders, proportionally.

This approach incentivizes investors to hold TUP in their wallets to earn rewards in native tokens, since they can exchange at any time. Additionally, the Employer contract can use its received resources to reward investors who deposit TIME tokens regularly. This serves as an incentive for investors while helps maintain the health of the ecosystem, liquidity in the TUP contract, and stable growth and development of its economy.

The mechanism's sole limitation is that, despite its automatic operation, its activation relies on interacting with the contract through the execution of transactions. Consequently, the next distribution of resources will occur only after sending if a transaction is carried out.


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