How does the multiplier work?

The multiplier determines how the tokenized stock price is mapped to the underlying stock. When a listed company takes actions such as dividend payments or stock splits, the token issuer updates the multiplier.

For example, when the company pays dividends, the corresponding token's issuer reinvests it by acquiring more of the underlying asset. They then update the multiplier so that your tokenized stock holdings reflect the increased equity.

This means your tokenized stock value may increase while the Onchain token quantity stays the same. As a result, the Onchain quantity and price may differ slightly from what you see in the app, but the total value remains the same.

Example:

1. You buy 1 NVDAon with a multiplier of 1.0 → equivalent to buying 1 share of NVDA stock.

2. A dividend equivalent to 0.1 shares is paid, so the multiplier is updated to 1.1.

3. Your NVDAon holding is still 1 share, but if you sell it, the value of this holding has become 1.1 NVDA—this is how you will profit from dividends.