> For the complete documentation index, see [llms.txt](https://whitepaper.karmatoken.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.karmatoken.org/karmas-features/reflect-finance.md).

# Reflect Finance

## Reflect Finance Code

Among the various innovations made possible by blockchain and decentralized technologies is the concept of reflector tokens, implemented using smart contracts.<br>

A Reflect Finance Token (RFT)  is a digital unit of value (token or digital currency) that is programmed to generate continuous token rewards to its holders from the transaction fees realized from network activities such as buying, selling, and transferring tokens.<br>

Karma token is an excellent implementation of the reflector token concept that uses in-built smart contract-based artificial intelligence to manage and execute transactions on the Binance Smart Chain. Karma token ($KRMA) collects a 3% transaction fee for each transaction and frictionlessly distributes the taxed tokens to all wallets holding Karma according to the volume of Karma.<br>

Karma’s taxation redistribution system is implemented using smart contracts written in Solidity and running on the Binance Smart Chain Network, offering a transparent and independent automated passive rewards stream for all holders of the token.


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