# DAO Token-Type and Automated Distributions

**Internalized DAO Tokens**

Delnorte utilizes a unique token type that differs from the standard ERC-20 specification to meet the specific requirements of DAOs, including:

* **Automated Dividend Payouts**:
  * Internalized tokens enable automatic Ether distributions based on token ownership at any historical or future date.
  * Externalized tokens (e.g., ERC-20) stored on external exchanges would hinder the automated payout process.
* **Enhanced Ecosystem Control**:
  * By restricting DAO token trading to the **Delnorte Exchange**, Delnorte ensures that payout mechanisms remain efficient and transparent.
  * This design prevents governance and financial complications that may arise from token dispersion across multiple exchanges.


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