# 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 monthly distributions.

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**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         |
| **Overcollateralization** | 5x by Strategy's Bitcoin holdings   |

## How Yield Flows to You

```
STRC (Strategy's Preferred Stock)
         │
         │  Pays annual dividends (quarterly)
         ▼
Buck Protocol Treasury
         │
         │  Passes yield through to holders
         ▼
Eligibility Snapshot (15th of each month)
         │
         │  Protocol measures holder balances during snapshot window
         ▼
Payout (4th business day of following month)
         │
         │  New BUCK minted and distributed to eligible holders
         ▼
Your Wallet (BUCK)
```

### The Monthly Cycle

1. **STRC pays dividends** — Strategy pays quarterly dividends on STRC
2. **Buck Protocol receives funds** — Dividends flow into the protocol treasury
3. **Eligibility snapshot** — On the 15th of each month (9:00 AM – 4:00 PM ET), the protocol snapshots holder balances to determine who is eligible. This is when your balance is measured, not when you get paid.
4. **Distribution calculated** — Your share is based on your BUCK balance during the snapshot window
5. **Yield distributed** — New BUCK tokens are minted and distributed automatically on the 4th business day of the following month

[Learn about the eligibility window →](https://buck-3.gitbook.io/buck-docs/how-yield-works/distribution)

## 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*

For a full comparison with other yield-bearing tokens, see [How Buck Compares](https://buck-3.gitbook.io/buck-docs/getting-started/why-buck#how-buck-compares).

***

*Next:* [*Monthly Distribution →*](https://buck-3.gitbook.io/buck-docs/how-yield-works/distribution)