jats:pDespite their proven ability to output DC currents of &gt;100 A, the physical mechanism which underpins the operation of a high-Tc superconducting (HTS) dynamo is still debated widely. Here, we show that the experimentally observed open-circuit DC output voltage, Vdc, is due to the action of overcritical eddy currents within the stator wire. We demonstrate close agreement between experimental results and numerical calculations, and show that large over-critical currents flow within the high-Tc stator during certain parts of the dynamo cycle. These overcritical currents experience a non-linear local resistivity which alters the output voltage waveform obtained in the superconducting state. As a result, the full-cycle integral of this altered waveform outputs a non-zero time-averaged DC voltage. We further show that the only necessary requirement for a non-zero Vdc output from any dynamo is that the stator must possess a non-linear local resistivity. Here, this is provided by the flux-flow regime of an HTS coated conductor wire, where conduction is described by the E–J power law. We also show that increased values of Vdc can be obtained by employing stator wires which exhibit a strong in-field dependence of the critical current Jc(B,θ). However, non-linear resistivity is the key requirement to realize a DC output, as linear magneto-resistance is not sufficient. Our results clarify this longstanding conundrum, and have direct implications for the optimization of future HTS dynamo devices.</jats:p>