What are reflection tokens and how do they work?

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What are reflection tokens and how do they work?
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  • 📰 Cointelegraph
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Are reflection tokens a risky investment?

, and staking have become common practices in the crypto market due to the remarkable growth the DeFi ecosystem has witnessed in recent years. These features enable users to earn interest on their crypto holdings by locking them as deposits for specific periods.potential decline in the valuation of the locked assets

These shortcomings have raised"reflection tokens" as a viable alternative. In theory, reflection tokenomics remove the necessity of locking tokens while still offering staking-like benefits.charge a penalty tax on each transaction. In turn, they give out the fee to all token holders depending on the percentage of assets they hold.

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