# Token Reflection

{% hint style="info" %}
Reflections are distributed real-time every time a transfer is made to all existing holders pro-rata.
{% endhint %}

> ### Every time someone buys or sells, 5% of the transaction is distributed to all holders.&#x20;

Traditional mining is both costly and inconvenient for the user. Frictionless, static reflection rewards accrue by simply holding your tokens, and features an innovative hold-farming reward structure that stands out from conventional pool-farming rewards. The idea behind this function is to eliminate token dependencies that have created problems in the past, including, but not limited to:

1. Pooling funds in unverified 3rd party smart contracts;
2. External website interfaces;
3. Transaction fees needed to claim rewards.

Earlier models of decentralized finance tokens such as pool farming are costly and rely on user action to manually compound rewards. As a solution, we propose the utilisation of a compounding reward structure that requires no additional fees in a smart contract function, also known as token reflections. To achieve this, reflection must happen without cost or impact to the user. Considering the static rate of reflection set at 5%, the volume of market activity will directly impact the quantity of token reflection based upon the percentage of tokens held by the user relative to the overall supply.
