Reflections & Shares
What are Reflections?
Every transaction would have a 4% (updated on 27th October 2023) 12% tax and 0.01% (updated on 27th October 2023) 6% of it will go to reflections. REFLECTIONS are the shares that are redistributed to the holders. The users will receive reflections based on their shares.
The bigger share a user has, the bigger share of reflections he gets. Reflections are redistributed using the stable coin, USDT. Note: that UNSTAKING can only happen 60 days later. If, in instance, the user decides to add tokens for STAKING, the staking duration (60 days period) refreshes.
As stated in the Taxation Breakdown, every transaction in the Inuko Finance ecosystem would have a 4% (updated on 27th October 2023) 12% tax and 0.01% (updated on 27th October 2023) 6% of it will go to reflections.
What are Reflections?
Reflection tokens (sometimes called reward tokens) are cryptocurrencies that reward holders with new tokens in their wallets, by employing a mechanism in which transactions are taxed and a percentage of the tax charged is redistributed to holders of the token. Reflection tokens allow crypto newcomers to join without learning about yield farming, staking, and liquidity mining.
How does Reflection work?
Any cryptocurrency asset that compensates owners by adding new cryptocurrency to their wallets is referred to as a Reflection Token. Other DeFi investment strategies like staking and yield farming have as their main objective generating additional coin. Reflection tokens, on the other hand, pay coinholders without requiring them to move any money, join any staking pools, or even check their cryptocurrency wallet.
Typically, a percentage tax on all native token transactions is used to fund reflections. Coin holders receive an immediate redistribution of the tax, typically based on the volume of their holdings.
Inuko Finance Reflections
In Inuko Finance, REFLECTIONS are the shares that are redistributed to the holders. The users will receive reflections based on their shares. The bigger share a user has, the bigger share of reflections he gets. At Inuko Finance, reflections are redistributed using the stable coin, USDT.
What is a Share?
Shares represent equity ownership in a corporation or financial asset, owned by investors who exchange capital in return for these units. For some businesses, shares are a type of financial instrument that allows for the equal distribution of any declared residual profits.
How will Staking affect the Share-of-Reflection the user gets?
If the user decides to STAKE their tokens, it will increase their number of SHARES to 2.5x.
For example, user owns 100 Inuko Coins which means he has 100 shares; upon staking, he still owns 100 Inuko Coins held by the staking contract but his shares is now 250 shares. Since REFLECTIONS are redistributed based on the users' SHARES, the user with bigger SHARE will get bigger SHARE OF REFLECTIONS in the form of USDT.
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