# reflections

## How It Works

{% stepper %}
{% step %}

### Transaction Occurs

* User buys or sells $BGOLD on DEX
* 5% fee automatically collected
  {% endstep %}

{% step %}

### Fee Distribution

* Smart contract allocates fees per tokenomics
* 49.5% of fees designated for reflections
  {% endstep %}

{% step %}

### VNXAU Conversion

* Reflection portion swapped for VNXAU via Aerodrome Slipstream
* Built-in slippage protection ensures fair rates
  {% endstep %}

{% step %}

### Reward Distribution

* VNXAU distributed to all holders proportionally
* Distribution processed during each transaction
  {% endstep %}

{% step %}

### Claim or Auto-Distribute

* Holders can claim rewards anytime via the `pan()` function
* Community members can trigger batch distributions via `process()` function
* **Coming Soon**: AI agent-powered auto-distribution every 48 hours via X402 integration, ensuring passive holders never miss their gold rewards
  {% endstep %}
  {% endstepper %}

***

## Mathematical Model

```
Holder Rewards = (Holder Balance / Circulating Supply) × Reflection Pool × VNXAU Rate
```

***

## Example Calculation

**Scenario:**

* You hold: 100,000 BGOLD (0.1% of supply)
* Daily volume: $100,000
* Total fees: $5,000 (5% of volume)
* Reflection fee collected: $2,475 (49.5% of $5,000)
* VNXAU price: \~$95 (1 gram gold, live rate)

**Your daily rewards:**

```
(0.1%) × $2,475 = $2.475 in VNXAU per day
≈ 0.026 VNXAU tokens per day
≈ 9.5 VNXAU tokens per year
≈ $902 worth of gold per year*
```

*Prices illustrative. Actual rewards depend on trading volume and live VNXAU/gold prices.*

***

## Advantages Over Traditional Reflections

| Traditional Reflections | BaseGold Reflections         |
| ----------------------- | ---------------------------- |
| More of same token      | Physical gold-backed token   |
| Inflationary            | Deflationary (gold scarcity) |
| No real value           | Real-world asset value       |
| Sell pressure           | Hold incentive               |
| Ponzi-like dynamics     | Sustainable model            |


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