Are Reflection Tokens just a Gimmick?

What are reflection tokens and do they stack up?

About your author: CryptoQuestion is an independent platform providing free resources for cryptocurrency investors. From an on-demand Q&A service to online courses, from our weekly Moonshot Monday podcast to our weekly Staking and Farming Review. Visit us at www.cryptoquestion.tech

A new term has entered the crypto enthusiasts repertoire of technical lingo. That term is reflection tokens or reflection for short. It’s a term that has only been around for the last four months but the concept it describes emerged from a project called Hoge Finance which was launched a month before Safemoon, the memecoin which popularized the concept of reflections.

What is a reflection?

It is the payment of a reward to holders of tokens in the native token.

Let’s take Safemoon as an example. Safemoon tax both the buyer and seller 10% on each and every trade. 5% of this tax is redistributed back to token holders. This redistribution is called a reflection or a reflection token.

Many projects have followed the same example set by the pioneer Hoge Finance.

This is the typical marketing blurb that tries to explain the concept: