# Yield Overview

## The Yield Engine: STRC

BUCK's yield comes from its holdings of **STRC** — Strategy's perpetual preferred stock traded on NASDAQ. STRC pays contractual quarterly dividends to the Buck Treasury, and Buck Protocol passes this yield through to BUCK holders via continuous yield streaming directly into the token price.

{% hint style="success" %}
**Real Yield from Real Assets**

BUCK delivers \~10% APY from STRC's contractual dividends — not token emissions, funding rates, or trading strategies. This yield is backed by Strategy's $60B+ Bitcoin treasury and $2.25B in cash reserves.
{% endhint %}

## What is STRC?

| Property              | Details                             |
| --------------------- | ----------------------------------- |
| **Issuer**            | Strategy (NASDAQ: MSTR)             |
| **Type**              | Series A Perpetual Preferred Stock  |
| **Ticker**            | STRC (NASDAQ)                       |
| **Dividend Rate**     | Paid quarterly                      |
| **Backing**           | Strategy's Bitcoin treasury ($60B+) |
| **Cash Reserves**     | $2.25B                              |
| **Dividend Coverage** | 77.4 years at current rates         |

## How Yield Flows to You

```
STRC (Strategy's Preferred Stock)
         │
         │  Pays annual dividends (quarterly)
         ▼
Buck Protocol Treasury
         │
         │  Passes yield through to holders
         ▼
Yield Stream Set (protocol sets rate + vesting period)
         │
         │  Yield multiplier increases linearly, every second
         ▼
Your BUCK Price Appreciates Continuously
```

### The Yield Streaming Model

1. **STRC pays dividends** — Strategy pays quarterly dividends on STRC
2. **Buck Protocol receives funds** — Dividends flow into the protocol treasury
3. **Yield stream set** — The protocol sets a yield rate (\~10% APY) and vesting period
4. **Price appreciates** — The BUCK price increases continuously as the yield multiplier grows
5. **Compounding** — At each vesting period end, accrued yield compounds into the base

No snapshots, no claiming, no eligibility windows. Every second you hold BUCK, yield accrues into its price.

[Learn about yield streaming mechanics →](/buck-docs/how-yield-works/distribution.md)

## Why STRC Dividends?

| Yield Type         | Source                     | Dependency        |
| ------------------ | -------------------------- | ----------------- |
| **STRC Dividends** | Corporate preferred equity | Strategy solvency |
| Funding Rates      | Perpetual futures          | Market sentiment  |
| Staking Yield      | Proof of stake             | Network activity  |
| Lending Yield      | Borrower interest          | Credit demand     |
| T-Bill Yield       | Government bonds           | Fed rates         |

STRC dividends are:

* **Contractually obligated** — Preferred equity has senior legal claim to dividends
* **Paid regardless of market** — Not dependent on crypto market conditions
* **Long-term sustainable** — 77+ years of coverage at current reserves

## Growth Projections

| Period   | Growth | BUCK Value (from $1,000) |
| -------- | ------ | ------------------------ |
| 1 month  | +0.83% | $1,008                   |
| 3 months | +2.5%  | $1,025                   |
| 6 months | +5.0%  | $1,050                   |
| 1 year   | +10.0% | $1,100                   |
| 2 years  | +21.0% | $1,210                   |
| 5 years  | +61.1% | $1,611                   |

*Compound growth at 10% annually. Assumes flat STRC price. Actual returns will vary with STRC price movement.*

For a full comparison with other yield-bearing tokens, see [How Buck Compares](/buck-docs/getting-started/why-buck.md#how-buck-compares).

***

*Next:* [*Yield Streaming →*](/buck-docs/how-yield-works/distribution.md)


---

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