Making Money, or in other words, creating assets has become quite easy with the rising popularity of cryptocurrency but with a risky proportion. And now that you are in the right place now, you will get a step-by-step guide on how to start buying and trading cryptos.
So, Let’s deep dive in the world of cryptocurrency and get the answers to the most common questions – What Is Reflection In Crypto
What are reflection tokens in crypto?
Reflection tokens are fast attracting experienced crypto traders, but also allow crypto newcomers to join without learning about yield farming, staking, and liquidity mining. So what are reflection tokens in crypto and how do they work?
What is the reflection concept?
The reflection concept is volume-dependent. This mechanism alleviates the negative sell pressure on the token caused by early holders liquidating their holdings. The reflection mechanism also incentivizes holders to retain their tokens in order to earn larger returns that are proportional to the holder’s token holdings.
How does the reflection system work?
The reflection system actually doubles the profit for holders that keep their tokens the longest. Reflection works by charging a penalty tax (usually in percentages) to each transaction and distributing the fee to all token holders according to the percentage of assets they are holding.
What is a reflection token (RFI)?
RFI is a reflection token on the Ethereum network. It applies a 1% fee to RFI transactions which are automatically distributed among coinholders. The amount is dependent on the size of each investors’ position. RFI holders can also use their tokens for yield farming or staking without damaging RFI reflections.