# ve4REX and Dividend distribution

<figure><img src="https://2630918718-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7x0z0t7tk4blphMgXGP7%2Fuploads%2FcCgo3afLz8dEvgKap2BV%2Fimage.png?alt=media&#x26;token=8b30d475-0faa-4fe4-9688-0508b8df46a9" alt=""><figcaption><p>simplified representation of 4REX locking</p></figcaption></figure>

Any 4REX holder has the option to lock their 4REX with the protocol to convert 4REX into ve4REX. All ve4REX holders receive dividends from the protocol.&#x20;

The protocol generates revenue via transaction fees, foreign exchange rate profit through EMC price depreciation (against the USD), and external yields with reserved assets. A portion of the total revenue earned by the protocol is distributed to all ve4REX holders. The protocol will execute the revenue dividend process periodically (e.g., weekly, monthly, etc).&#x20;

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