November 25, 2021 Sean Markell

What is a DeFi Reflection Token? – COQ Token

There’s a new wave of Defi tokens coming across and they’re including a mechanic called Reflection Token.

Recently, there’s a new wave of Defi tokens coming across and they’re including a mechanic called Reflection Token. As it seems a simple concept, in this article we are talking about reflection tokens and how do these tokens work?

In DeFi an RFI or ‘Reflection token’ collects a fixed transaction fee and utilizes a smart contract to automatically indicate a portion of those fees back to existing token holders enabling them to earn yield.

Meanwhile, RFI in itself does technically yet apply to one of the original DeFi reflection tokens considered as Reflection Finance (RFI).

The arrival of Reflection Tokenomics

An outburst in the growth of the network on the Binance Smart Chain, which is actually an Ethereum Virtual Machine congenial blockchain, has created a massive number of decentralized finance projects utilizing ‘reflection’ token mechanics.

For examples of this, you can see projects which include SAFEMOON where a 10 percent fee is levied for whole token transactions, along with half of these fees collected independently being redirected to present token holders.

The half of other fees that can be assembled is utilized to build liquidity and a minor portion burned and forever from circulation.

Later, safe SAFEMOON gained fast popularity on the BSC a number of other projects instantly followed suit with the same mechanics. Here are some examples such as GLASS and GMR Finance.

‘Reflection’ Tokens solve which kind of problems?

There are often astronomical tokens that provide (think quadrillion, with a q) and recoil token mechanics, this model sets to escape whales from quick manipulating and exploiting DeFi projects with few token supplies.

It strives to do this in part by discouraging sooner participants from dropping early during the tokens starting price discovery phase.

Currently, reflection tokenomics is a comparatively new event in the crypto world of DeFi so goes along with caution. Meanwhile, the tokenomics maybe indicate they’re in my opinion however, they are in my opinion still relatively unproven and the project they’re merged with, well there are many but only consist of products, proceed with caution friends.

Prior to diving core into the project working, you should aware of the features and characteristics of this project. $COQ is a recoil token of BNB that shows dynamic taxation and dividends, which will be totally controlled by the community.

Where this community can vote to enhance or lower taxation and dividends rely on the market sentiment or other rules and targets. This process will aid to enhance BNB ROI for all $COQ HODlers.

COQ is considered as a tool that collects value until they are required to ride out the volatility of the token value. It guides all decentralized financial pools within all chains to increase transparency and security along with its exclusive technologies.

This COQ is a multi-functional platform that can be utilized in many ways to ease the user and holders of COQ tokens. COQ token allow users to earn BNB just by holding COQ tokens in the wallet, thus don’t waste your valuable time and money and Buy COQ Tokens Now.