Crypto dividends are rewards distributed to token holders, similar to traditional stock dividends. Instead of cash, investors receive additional tokens or a share of profits, often paid in the same cryptocurrency they hold or in a stablecoin. These dividends are typically distributed by projects that generate revenue through fees, staking, or platform usage and choose to redistribute profits back to their community.

How Crypto Dividends Work
Revenue Sharing: Some DeFi platforms or blockchain services share a portion of their earnings with token holders.

Staking Rewards: Certain PoS (Proof-of-Stake) coins pay dividends simply for holding and staking them.

Buyback & Burn: Some projects use profits to buy back tokens, increasing scarcity and indirectly benefiting holders.

Tokens That Offer Dividends
KuCoin Shares (KCS) – KuCoin exchange distributes daily dividends from trading fees.

NEO (GAS) – Holding NEO generates GAS tokens as passive income.

VeChain (VTHO) – VET holders earn VTHO, used for transactions on VeChain’s network.

OmiseGO (OMG) – Historically shared transaction fee revenue with stakers.

PIVX (PIVX) – A privacy coin offering staking rewards.

Key Considerations
Sustainability: Not all "dividend" tokens maintain long-term payouts.

Tax Implications: Crypto dividends may be taxable as income.

Smart Contract Risks: Some rewards depend on DeFi protocols, which carry risks like hacks or rug pulls.

Crypto dividends provide a way to earn passive income, but investors should research each project’s reward model and reliability before committing funds.