$toby base

Can someone tell me how reflection coins work

“Reflection coins” (or reflect tokens) are a type of cryptocurrency that automatically distribute a portion of transaction fees back to existing holders. The idea is to reward holders simply for holding the token—kind of like earning dividends.

How It Works:

Whenever someone buys, sells, or transfers the token:
	1.	A small fee (e.g., 5-10%) is taken from the transaction.
	2.	Part of that fee is redistributed proportionally to all existing holders.
	3.	Sometimes, the fee is also split into other purposes like:
	•	Liquidity pools (to stabilize price)
	•	Marketing or development funds
	•	Burn wallets (to reduce total supply over time)

Key Features:
	•	Passive rewards: You earn more tokens without doing anything.
	•	Encourages holding: Frequent trading is discouraged due to transaction fees.
	•	Community-driven: Often tied to community engagement or meme culture.

Examples:
	•	SafeMoon

From ChatGPT