This paper presents an in-depth analysis of the generation of tones in the output spectra of vector-quantizer (VQ) based multibit mismatch-shaped ΔΣ digital-to-analog converters (DACs). Building upon the analysis, a simple yet elegant method of adding dither to remove tones from the output spectra is presented. It achieves a better mismatch shaping performance with a low hardware cost compared to existing dithering techniques.