# Royalty Distribution

Royalties are collected off-chain in fiat by Rosentica from the original distributors and collection societies.

Royalties collected in fiat are converted into USD1 via on-ramp channels. These USD1 proceeds are then used through the Freya Protocol to repurchase **$DRAGON** tokens on decentralized exchanges.

 Purchased tokens are partially burned, while the remaining portion is transferred to the **royalty distribution contract**, where holders can claim their share of the royalty-powered buyback on a daily basis — forming a sustainable, yield-generating flywheel backed by real-world IP royalties.