Reflection token
In short A reflection token charges a fee on each transaction and automatically redistributes part of it to all holders in proportion to their balance.
A reflection token is a token whose contract takes a fee on transfers and shares part of it with existing holders. Holders see their balance grow without claiming anything or staking. The model became popular on BNB Chain in 2021 and still shows up in many small tokens.
Most reflection contracts do not actually send tokens to every wallet, which would cost far too much gas. Instead they track balances in an internal reflected unit and adjust a conversion rate each time a fee is charged, so every holder's displayed balance rises at once. Typical setups split a total fee of 5% to 15% between reflections, liquidity, marketing, and burns. Some variants pay rewards in another token, such as a stablecoin, through a separate dividend tracker.
For holders, reflections are a redistribution of fees paid by other traders, not new value. They only add up when trading volume is high, and the same fee hits you every time you buy or sell. Large holders, often the team, collect the biggest share. If volume dries up, so do the rewards, while the fees keep making exits expensive.
Check the total buy and sell tax and whether the owner can raise it. Look at which addresses are excluded from fees and from rewards, since the liquidity pool and team wallets usually are. Reflection contracts are complex and many are copied from the same templates with modifications, so a contract scan or audit is worth reading before trusting one.