Reflection tokens (sometimes also called ‘rewards’ tokens’) refer to any crypto-asset that rewards holders by adding new crypto to their wallets. Earning extra crypto is the end goal of other DeFi investment mechanisms like staking and yield farming. However, reflection tokens pay coinholders without them having to move any money, sign up to any staking pool, or even having to check their crypto wallet.
Reflections are usually financed by a percentage tax on any transaction in the native token. The tax is redistributed instantly to coin holders, most often according to the size of their holding.
Electra Protocol does not offer reflections as an offering, but is instead offering staking rewards.
