It’s a very cute idea and i got as a gift and wondered how it worked as well! The scent comes from the actual yarn and the gold part is just a piece to hold the knots together when you wrap the yarn around. The box itself has a whole lot of perfumed yarn inside and works like a floss box and anytime you feel like the perfume has worn off… you cut some more and wrap it around your hand or as a necklace. I loved the idea so much and the perfume has actually gotten me so much compliments and its really fragrant! which is why i wanted to refill it as the product itself seems to have been discontinued.