⚔️ The first CW20-Reflection standard on Injective

5 min readMar 6, 2024


Hello Ninjas,

The release of the first ever CW404 standard created a fanfare like never before seen in the world of Cosmos. We are thankful that our efforts bore fruit, and are thankful to the Injective team for working closely with us to make it happen! At the core of what we do, the DojoSwap team’s goal is to align ourselves with the goal of Injective — to create the ultimate financial hub. This can be manifested through the launch and adoption of different financial primitives. CW404 brought about the hyper financialisation of NFTs through fractionalization. With more than 10 projects already reaching out to us in a bid to launch different variants of CW404, we are excited as to the future of Injective and how we are progressing towards the future where Injective does indeed become the ultimate DeFi hub within the Cosmos ecosystem.

Today, our team is proud to unveil another effort together with the Injective team. We’ve seen many variants of taxed & reflection tokens on EVM, but have never seen these being proliferated in the Cosmos world. It is important to understand how taxed/reflection tokens are an important financial primitive in the world of DeFi. The lack thereof creates a void for which developers are unable to create meaningful financial derivatives — this alienates the creation of an entire class of DeFi DAPPs. The goal of the DojoSwap team is simple, we create a flexible standard that allows developers to easily utilize, and potentially launch tokens via our token factory UI; our goal is to make building on Injective easy, and purposeful.

The launch of the CW20-REFLECTION standard is going to be a landmark event in Injective as it is likely going to culminate in one of the largest (in size) airdrop, alongside one of the largest volume day (for AMMs). Airdrop hunters, traders and speculators are going to have an absolute field day with this launch. However, for the unintiated, you might wonder; what’s a taxed/reflection standard?

What is CW20-Reflection standard?

The CW20-Reflection standard is a modified CW20 standard that can uniquely function in 2 ways:

  • As a pure taxed token: Users are taxed per token transfer, where the taxed portion is burnt. OR, the taxed portion goes towards a treasury contract that can be withdrawn. This opens up interesting use cases for developers who wish to create “tax-on-transfer” tokens where taxes can be used for their tokenomics.
  • As a reflection token: Taxes are used to buy a target token via the DojoSwap DEX. These tokens are to be distributed back to the reflection token holders.

All the above functionalities can be mixed and matched flexibly to create your own unique implementation for your unique project. All parameters can be tweaked, such as the tax rates, target token to purchase, etc. The net effect of such a token is to promote the creation of an entire class of new financial derivatives. As we rapidly approach the beginnings of a new bull market, we are highly certain of the potential demand for these financial primitives. Remember, SafeMoon was created at the absolute beginnings of the last bull market, and all it really takes is for there to be one huge winner for a narrative to be recycled. All we’re doing here is to lay the foundations together with the Injective team, in anticipations of renewed interest from the crowd — we simply aim to become the trendsetters, we attract the developers, we attract the users.

Technicalities behind CW20-Reflection:

  • The standard was built to be compatible with the CW20 standard, allowing it to be used on AMMs Dexes
  • Taxes are applied on transfers. We have the ability to whitelist addresses to prevent taxes on whitelisted addresses
  • The CW20-Reflection token can also be wrapped into a bank version. This effectively removes the transfer taxes, allowing it to be used on order book DEXes such as Helix. This also opens up the possibility of the token being listed on CEXes if required!

Enter the babyDOJO token

(Issued via airdrop to DojoSwap ecosystem holders)

How the babyDOJO token was implemented:

  • First CW20-Reflection token, built with love by the DojoSwap team, and audited by the SCV security team
  • 8% taxes will be used to buy DOJO to be distributed as dividends. 1% tax used to buy DOJO to be burnt. Remaining 1% to be used for automatic liquidity acquisition for babyDOJO to create a rising price floor
  • Read our past article on the flywheel token economics between DOJO and babyDOJO to understand how a synergistic relationship exists between the both

The babyDOJO token was created originally as a big thank-you to the OGs in our ecosystem. More importantly than that, it is our way of redistributing all the fees that our DEX has generated so far as a vehicle of speculation that is guaranteed to generate more fees in return for the DEX. With even more fees being generated, we are capable of dropping even larger airdrops in the near future. A true masterclass in recycling profits generated by users, for the users! Having said that, the babyDOJO token was originally conceptualised as a token to create a 1+1=3 effect. Simply distributing DEX revenue to users is only going to have the effect of 1 round of wealth effect generation. By dropping a token like babyDOJO, we create a new cycle of wealth creation through volume generated by the babyDOJO token. Its success metric isn’t price, but more of the volume being generated, as volume has the net effect of applying buy pressure onto the DOJO token, which effectively also increases the dividends you’d get by holding babyDOJO! To fully understand the economies behind how it works, read this past article we’ve written.

Once the babyDOJO token is dropped, the team is going to work expeditiously to create more utility for it. Beyond that, our R&D team is also hard at work to port more interesting standards into Injective. All these standards are eventually going to be manifested as a free drop to DojoSwap and Injective users. There has never been a better time to be a part of the Injective movement. Do join us today.

With love,
DojoSwap team