The concept of the reflection mechanism was newly introduced into the cryptocurrency space a few months ago. A reflection mechanism can be defined as a process in which tokens act as a self-generating mechanism for their holders. This means that a percentage is added to a liquidity pool for every transaction, and another portion is set aside for redistribution among token holders. As a result, the value of these tokens is self-generated and aims to promote a ‘hold and earn’ culture, which reduces selling pressure. The reflection mechanism is accomplished through smart contracts, which automate the token redistribution.
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