Pulselorian

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1

BSKR

Reflection tokens are cryptocurrencies that reward holders by employing a mechanism in which transactions are taxed and a percentage of the tax charged is redistributed to holders of the token.

One of the reasons behind the tokenomics of reflection tokens is to prevent large price drops new cryptocurrencies often face from whales during their price discovery phase.

Also, since holders are rewarded with new tokens, the mechanism incentivises investors to hold onto their tokens long-term. Because of this, reflection mechanisms are seen as an effective way of keeping investors loyal to a project.