#bstockscis @BinanceCIS
What happens to bStocks when the underlying share undergoes a corporate action?
No need to manually monitor every split or other change.
When a corporate action occurs with respect to the underlying share, the corresponding changes to bStock are processed automatically via the Multiplier mechanism.
For example, during a split, the number of bStocks changes and the price per token is adjusted proportionally.
Dividends work differently: after withholding 30% US tax, the net amount is automatically reinvested into the underlying share, and the bStock balance increases through Multiplier. There is no separate receipt of dividends in USDT.
So the user does not need to make these adjustments themselves.
The corporate action is applied to the underlying asset—bStock automatically reflects the result.
This is one of those tokenization details that’s easy to miss until a corporate action occurs.
What mechanism should we break down next: a split, dividends, or a 1:1 conversion?
What happens to bStocks when the underlying share undergoes a corporate action?
No need to manually monitor every split or other change.
When a corporate action occurs with respect to the underlying share, the corresponding changes to bStock are processed automatically via the Multiplier mechanism.
For example, during a split, the number of bStocks changes and the price per token is adjusted proportionally.
Dividends work differently: after withholding 30% US tax, the net amount is automatically reinvested into the underlying share, and the bStock balance increases through Multiplier. There is no separate receipt of dividends in USDT.
So the user does not need to make these adjustments themselves.
The corporate action is applied to the underlying asset—bStock automatically reflects the result.
This is one of those tokenization details that’s easy to miss until a corporate action occurs.
What mechanism should we break down next: a split, dividends, or a 1:1 conversion?
