# RFI Rewards

RFI rewards (also called reflections) work by applying a small fee to each transaction and instantly splitting that fee among all holders of the token.\
\
Holders do not need to stake or wait for fees to be delivered. Fees are awarded by the smart contract and immediately reflected in the holders' balance. This provides long-term holders with a lifetime of frictionless, non-inflationary passive rewards.

{% hint style="info" %}
In the case of ELEPHANT token, the 10% fee on transaction is split evenly between **liquidity** (5%) and all the **holders** of the token (5%).
{% endhint %}


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