Taxes are exactly what they sound like – an imposed charge on the overall value of a transaction, built right into the smart contract. Crypto projects can have all sorts of reasons for imposing them. One of those reasons - can be to fuel Reflections, a Tokenomic mechanism wherein a percentage of the collected taxes are ultimately re-distributed to all holders of the native token. A Holder’s total payment is typically based on what percentage of the total circulating supply they own. Reflection payments may be paid in the form of the native token, a secondary token, or even a stable coin.