Custom reflections formula
Last updated
Last updated
Other reflection token projects face two major issues:
barely noticeable reflections at the start of the life cycle of the project
at one point, their maths will break rendering token transfers impossible
Our formula guarantees fast reflections at the start of the project life cycle, so that early supporters are appropriately rewarded in our bootstrapping phase. After a certain point, reflections slow down to a healthy, sustainable, near linear growth, backed by transaction volume.
The x-axis below represents the share of the total supply which has been reflected so far, the y-axis the resulting multiples from reflections.
Note that with 1% reflection fee, x=0.5 for example is reached when the entire total supply has been transacted 50 times, based on the 'base amount' of tokens moved.
The base amount of tokens describes the amount of tokens disregarding all reflections that happened so far. Say you have 10 tokens initially and get reflections of 10%, yielding 11 tokens in total. Then the base amount would still be 10 tokens, because that's what you started out with. For that it doesn't matter when you acquired the tokens, it's always calculated based on the total reflections happened over the lifetime of the token contract.