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The concept underpinning reflection in cryptocurrency is as building blocks for new and existing crypto projects around the globe. Reflections are a component of the ‘tax’ that we pay for using the token.
A reflection token is a cryptocurrency whose holders are rewarded by levying fees on transactions and then redistributing a percentage of the fees charged to them. A ‘reflective token’ distributes a percentage of every transaction back to its holders.
A reflection mechanism can be defined as a process in which tokens act as a self-generating mechanism for their holders. As every transaction is taxed you receive tokens automatically simply by holding the token.
● DeFi yield generation: the reflection mechanism automatically awards bonuses, allowing holders of reflection tokens to use their tokens for staking and other yield generation purposes. ● Fair distribution of earned tokens: because the distribution process is automated, it is based on the number of tokens held by each user at the time.
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