Re: [ANN] Reflect.Finance - RFI | Frictionless Yield Generation. Hold and Earn.
So uhh, the scheme roughly goes like this: 1% of each transaction is set as a transaction fee, which 99% of them will be distributed to each token holders, and 1% of that (on other words, 1% of 1% of every transaction) will be burned. Thus, the burning rate is 0.01% of every transaction?
0.047% and growing
Ok, but the percentage of burned token were from the 1% transaction fee, right? Wouldn't that mean the more it grow, the less amount of token a holder will get?
The size of the black hole doesn't affect the amount of fees you receive for holding a fixed amount of coins. It only affects the amount of coins in circulation, that decreases after every trade or transaction.
If you hold 10,000 RFI it's always 0.1% of the total 10,000,000 RFI, so you will always receive 1 RFI for every 100,000 RFI that are traded or transfered.
Ofcourse your stake will grow too, compounding to it, but I didn't take that into account to keep it simple
I don't think I get the number for blackhole. The RFI distributed from the entire tx fee were divided proportionally to each holder according to the amount they hold, correct? If we may use easy number, let's say there were only 2 holders of RFI, 2,000 RFI and 8,000 RFI. So A will be entitled to 20% of stake and B, 80%. Suppose there were 100 RFI transferred or traded, this will brings us to a situation where A will be entitled to 20 RFI and B 80 RFI, am I correct this far? Where is the allocation for blackhole, then?
The black hole is a "holder" too, there's just no private key to recover the coins.