# RFI

## **Understanding RFI Mechanism**

RFI, or Reflect Finance, introduces a unique approach to token rewards. For each transaction made with the token, a small fee is imposed. Instead of pooling these fees or requiring additional steps, the system instantly divides and distributes this fee among all token holders.

The beauty of RFI lies in its simplicity. Token holders don't need to take any extra steps like staking or claiming their rewards. The smart contract does all the work, immediately updating the balances of holders. This ensures a streamlined, non-dilutive means of earning passive income over time, rewarding those who choose to hold.

{% hint style="info" %}
In the case of the Cy9ni token, the (5%) transaction fee is distributed as follows: 4% is shared among all token holders, (0.5%) is allocated to the development treasury, and the remaining (0.5%) goes to the jackpot treasury.
{% endhint %}


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