# Dividends To compensate governors who sacrifice their [KTON](/getting-started/tokens/kton.md) liquidity and participation in the governance process. Revenues in the Governor Pool is paid to these governors based on their staked KTON proportionally against the overall pool. Dividends are paid through the state channel on a per transaction basis. That means every time a spending transaction takes place. Dividends are cleared and sent to the governor's credits in the state channel on-chain. Governors will need to actively send a claim transaction to the smart contract to collect their dividends (RING) to their wallet address. The dividends are not distributed as regular transactions because each spending transaction might distribute to thousands of beneficiaries with micro amounts. The gas cost will be significant compared to the amount sent. However, using the state channel, dividends can be accumulated and collected once. From the DeFi perspective, this governance model looks like a DeFi yield farming pool. You stake your KTON in the pool. In return, you receive RING tokens as rewards. The difference is in a regular pool, the reward you mint is the project's base token released at speed set by a fixed algorithm, whose value is driven mostly by speculation; While here, the reward you receive is the revenue from the game. Your financial reward is actually linked with the success of the business. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.evolution.land/advanced/evolution-land-dao/dividends.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.