Rewards are a tax feature where holders of the token are able to receive tokens based on the amount they hold. The reward token distributed is configurable by the creator prior to deployment and can either be the project's own token or another token (with more supported tokens being added over time).

Rewards are distributed in proportion to the amount of tokens a user holds at the time of distribution. Here is an example of a Reflections tax that rewards holders with ETH:

  • Balances:

    • Alice has 100 tokens

    • Bob has 200 tokens

  • 0.5 ETH is to be distributed to holders

  • Alice receives 0.5 x 100 / 300 = 0.1666... ETH

  • Bob receives 0.5 x 200 / 300 = 0.3333... ETH

To find more about the maths behind reward distribution click here.

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