If you have shareholders in your personal token, whenever you sell equity in a personal token or a company at a profit, the capital gains (the profit portion, not the entire proceeds) from that sale are distributed to those who hold equity in your personal token - proportional to how much equity they hold. For example, if you purchased personal token or company shares for 10,000 USD and later sold them for 15,000 USD, the 5,000 USD profit would be distributed to your personal token shareholders according to their ownership percentages. Capital gains distributions flow directly to the holders of the seller’s personal token, but do not cascade further up the network. For example, if Alice holds shares of Bob’s personal token, and Bob holds shares of Dan’s personal token, then when Dan sells equity and generates capital gains, these gains are distributed proportionally to Dan’s token holders (including Bob) but stop there - they do not automatically flow up to Bob’s token holders (like Alice). Alice can only benefit from Dan’s success indirectly if Bob’s token value increases due to his gains from Dan, and Alice then sells her equity in Bob’s token at this higher value. Dividends are immediately paid out when you sell equity in a personal token - since that capital and information lies within the network. On the other hand, when you sell equity in a company, it’s your responsibility to pay dividends for that to your shareholders through the network. You can do this on a yearly basis, by the US tax deadline. We’re building tooling to make this a very simple process for you. Any discrepancies / delays may affect your reputation in the network, which will be visible to your shareholders, future shareholders, and those you want to invest in.