Can anyone explain how dividends are made exactly?
Icojaka already wrote this few post back... i will coppy his post for you once mmre:
Regarding dividends... dividends are distribution of profits. In order to have profits, ICONOMI must first launch its products and generate revenue. By the end of this year we will launch two investment funds (ICONOMI.index and ICONOMI.performance)... This is where first fees will come from, but we expect profits to seriously ramp up later in 2017 when full OFM platform launches with many fund managers running their respective funds...
Regarding their distribution there should be no fear - we will announce the block height of distribution well in advance... So there will be plenty of time to move your ICN tokens to a wallet for which you control private key, or to an exchange that will support eth dividend redistribution... We are a long term business not pump and dump, so do not expect dividends on 1st of January or any time very soon...
Re "ICONOMI wallet"... as answered in our recent AMA (https://www.reddit.com/r/ICONOMI/comments/5ghrp5/askmeanything_icnx_and_iconomiindex_edition/) we will enable ICN deposits on our upcoming platform early next year. Investors will be able to securely store ICN tokens with us (multisig cold wallets)...
Okay so I mean the fees that are collected, do they market sell ICN then market buy ETH to distribute? Are the coins exchanges into ETH like DAO could therefore the coins are burned?
The first option would be awful for ICN traders.
Don't understand the question.
How are you obtaining the ETH that is going to pay out the dividends?