Reflection Mechanism and Crypto: A Deep Dive

by DailyBriefers
0 comment

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.

imageimage

Anndy Lian Hacker Noon profile pictureAnndy Lian Hacker Noon profile picture

@anndylianAnndy Lian

Intergovernmental Blockchain Expert | Best Selling Book Author

Tags

Join Hacker Noon

Create your free account to unlock your custom reading experience.

You may also like

Leave a Comment