🤔🤔🤔What happens to your dividend when a stock becomes a token?

➡️This is one of the details about bStocks I find much more interesting than 24/7 trading.

With a traditional stock, you usually think of a dividend as money arriving in your account.

bStocks work differently.

🟢According to Binance, when the underlying company pays a dividend, the net dividend is automatically reinvested into the underlying stock.

👀No cash payment.

🔥Instead, your bStock balance is adjusted through an on-chain mechanism called the Multiplier.

And here's the part worth paying attention to:

The dividend is not simply “lost” because you're holding a token. It is reflected in your position through automatic reinvestment.

There is also a tax layer.

👀Binance currently states that a 30% U.S. withholding tax applies to dividends before the net amount is reinvested.

So imagine a company pays a $1 dividend on the underlying share.

You don't simply receive $1 in cash.

👑After applicable withholding, the net amount is reinvested into the underlying stock, and the Multiplier adjusts your bStock position accordingly.

That may sound like a small technical detail.

...I don't think it is.

Because once traditional corporate actions — dividends, stock splits and potentially other events — start being processed through blockchain infrastructure automatically, tokenization becomes more than just putting a stock price on a blockchain.

It starts changing how the entire lifecycle of an investment can work.

🤔➡️Would you prefer your stock dividend as cash, or automatic reinvestment?

@BinanceCIS

#bStocksCİS

🔥🔥🔥How would you prefer to receive dividends?