# ExtZy Help - Dividends

Dividends in ExtZy are calculated on a weekly basis according to the amount of "Activity" for each Entity. To calculate the Activity for a Entity, we count the number of hits on the associated website as well as the number of unique visitors and use the following formula:

This algorithm favours sites that combine depth of interest with wide appeal. Due to the huge resulting range of values obtained (Yahoo receives over 40,000,000,000 hits a day for example!) We then use a logarithmic scale to obtain the actual payment. We favour sites that have been tagged with our ExtZy token (for more information on tagged Entities click here) The payments for tagged and non-tagged Entities are as follows

Tagged: Total Dividend = 20 x log(Activity)

Non-tagged: Total Dividend = 10 x log(Activity)

Each player receives a portion of the total dividend for every Entity in which they hold shares. For example, if the total payout for the Entity 'Z/Yen' in one week was 200 points, and you held 100 out of 1000 available shares. Your payout for 'Z/Yen' would be 20 points.

# Dividends can be negative!

In order to enhance interest and predictive capability, not all shares will pay positive dividends. Within certain markets, shares whose P/E ratio is below the median for that market will instead pay negative dividends, i.e. it will cost to hold these shares. The same algorithm will be used to calculate the absolute values of the payments, but at the final stage of the process the algorithm will calculate the median P/E ratio for the market and dividend payments for those shares whose P/E ratio is less than this median will be multiplied by -1.