> For the complete documentation index, see [llms.txt](https://delnorte-terra-vision.gitbook.io/delnorte-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://delnorte-terra-vision.gitbook.io/delnorte-docs/dao-token-type-and-automated-distributions.md).

# 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.