Reflections Explained
What Are Reflections?
Reflections in crypto refer to a reward mechanism where token holders automatically receive a portion of transaction fees just for holding the token. This process is governed by the token's smart contract and ensures that rewards are distributed proportionally based on holdings.
How Do Reflections Work?
Reflection Collections – A small percentage (e.g., 2%) is taken from each buy and sell transaction.
Redistribution – The reflections are then distributed to the holders proportionally.
Auto-Compounding – Since rewards are distributed in the same token, balances grow over time without requiring staking or claiming.
Benefits of Reflection Tokens
Passive Income – Earn more tokens automatically just by holding.
Encourages Holding – Selling means missing out on future reflections.
No Staking Required – Rewards are automatically distributed without additional steps.
How Legal X Will Use Reflections
Legal X will implement a reflection mechanism to reward its community by redistributing a 2% percentage of transaction fees to all token holders. This ensures steady accumulation of tokens over time, incentivizing long-term holding and engagement. The reflection system aligns with Legal X’s vision of creating a sustainable and rewarding ecosystem for its users.
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