A certain on-chain token has launched an interesting token holding dividend mechanism, specifically designed for long-term holders.

The mechanism is simple: a 5% fee is charged on each transaction, and all these fees are distributed to token holders with no team cut.

The calculation method for dividends is particularly thoughtful. It considers not only how many tokens you hold but also how long you have held them. The system uses a square root formula to calculate weight, so the longer you hold, the more your weight advantage increases.

For example: holding a 2% position for 24 hours compared to holding for just an hour results in a significant difference in dividend weight. This design logic is clear — it encourages users to participate long-term rather than engage in short-term speculation. This can be quite attractive for token holders seeking stable dividend income.