how it works
the full mechanics of the reflection token that flows down.
this document explains everything: why ordinary reflections quietly enrich whales, how LOXLEY inverts that with a progressive toll, how the Forest fills and the Tithe empties it, why whales cannot game their way onto the receiving end, and what the daily Loxley Report actually proves.
01the problem with reflections
a "reflection" token taxes each trade and pays the proceeds back to holders. it sounds communal. it is not. reflections are distributed in proportion to how much you already hold.
work the math. if a wallet holds 5% of supply, it receives 5% of every reflection, on every trade, forever. the largest holders earn the most, passively, simply for being large. a wallet with a thousand times your bag earns a thousand times your reflections.
a reflection token is a machine for making whales bigger. "rewards for holders" is a slogan for "rewards, mostly, for whales." it is a regressive payout dressed up as a gift, and almost every reflection token ever launched works this way.
LOXLEY exists because a chain literally named after Robin Hood should not run tokens that rob the poor to pay the rich.
02the inversion
LOXLEY keeps the two halves of a reflection token, the tax and the payout, and reverses the direction of both.
- the tax becomes progressive. instead of a flat rate, the rate climbs with the size of your wallet. small holders barely feel it. whales carry the load.
- the payout becomes downward. instead of paying proportionally (which favors whales), the payout is weighted toward the smallest holders, and the largest wallets are excluded from receiving it entirely.
the result is a token where, every single day, the biggest wallets bleed a little and a wide base of small, patient holders gets paid. reflections that flow down instead of up.
03the toll (progressive tax)
every transaction (buy, sell, or transfer) of LOXLEY carries a toll. the toll rate is set by the sender's wallet size, measured as a percentage of circulating supply at the time of the trade.
| tier | bag size | toll | receives tithe? |
|---|---|---|---|
| villagers | under 0.1% of supply | 1% | yes, first |
| townsfolk | 0.1% – 0.5% | 3% | yes |
| merchants | 0.5% – 1% | 6% | yes, reduced |
| nobles | over 1% of supply | 10% | never |
the tiers are read live from the chain. a wallet's tier can change as it accumulates or sheds supply, so the toll is always tied to your current weight, not a snapshot.
a flat tax is regressive in practice, because whales move the most volume and would dominate any proportional payout anyway. scaling the rate to wallet size is the entire trick: it puts the cost of the system on the wallets most able to bear it, and keeps the crowd almost frictionless.
04the forest (the pool)
every toll collected drains into a single onchain pool called the Forest. the Forest is not a treasury a team controls. it is a redistribution buffer with one job: hold the day's tolls until the Tithe pays them out.
the Forest fills continuously as trades happen. heavier purses leave heavier tolls, so on any active day the overwhelming majority of what fills the Forest comes from the Nobles and merchants at the top of the chart.
05the tithe (daily payout)
once every 24 hours, the Tithe empties the Forest and distributes it to eligible holders. the Tithe follows three rules:
- whales are excluded. any wallet in the Noble tier (over 1% of supply) receives nothing. they only ever feed the Forest.
- smaller bags are weighted heavier. the payout is not proportional to holdings. it uses an inverse weighting, so a villager receives more per token held than a merchant does. the smallest, most numerous holders sit at the front of the line.
- patience counts. a holding-time multiplier rewards wallets that have held through previous Tithes, discouraging wallets that hop in only to farm a single payout.
think of it as: share = f(smallness) × f(hold_time). the less you hold and the longer you have held, the larger your slice of the day's Forest. it is impossible to buy your way to a bigger payout, because buying more only pushes you up the tiers and out of the front of the line.
06why whales cannot cheat it
the obvious attack is a whale splitting one big bag into many small wallets to dodge the Noble toll and sneak onto the receiving end. LOXLEY makes this a losing trade:
- splitting costs the toll. every transfer to a fresh wallet pays the sender's current (high) toll, so a Noble pays 10% to fan out. moving real size across many wallets bleeds heavily into the Forest on the way.
- the hold-time multiplier resets. fresh wallets start with no holding history, so they sit at the back of the Tithe line for a while, earning little exactly when the whale wants to earn most.
- the crowd absorbs it. even a partially successful split still dumps the whale's toll into the Forest, which is then shared across thousands of genuine villagers. the attacker funds the very people they were trying to displace.
staying small and staying put is the only way to stay on the receiving end. that is the exact behavior the token is designed to reward.
07the loxley report
redistribution should never be a claim you have to trust. every day, LOXLEY publishes the Loxley Report: a public, onchain-sourced receipt of the day's flow.
- how much was taken from the top wallets.
- how many villagers were paid by the Tithe.
- the average and largest payouts, and which Noble wallets fed the Forest most.
it is one screenshot that tells the whole story, posted on repeat. the redistribution is a number you can see, not a promise in a whitepaper.
08the token
- chain: Robinhood Chain (ethereum L2). gas in ETH, standard EVM.
- launch: fair launch. supply and mint details published at launch.
- utility: holding LOXLEY is participation. small holders receive the daily Tithe; the tax and payout logic are the product.
- no whale table: no private allocation that would seed a Noble on day one. the system only works if it starts flat.
09a day in the forest
over one day, trading generates $50,000 in tolls. because the toll is progressive, roughly $42,000 of that comes from Noble and merchant wallets, and only $8,000 from the wide base of villagers and townsfolk.
at the Tithe, the Forest holds $50,000. it is split across 4,000 eligible small holders, weighted toward the smallest and longest-held. Nobles receive nothing.
a patient villager holding a modest bag might receive $15 to $25 that day. a Noble who traded heavily might have paid $6,000 into the Forest and received $0 back.
net effect: value moved from the top of the chart to the base of it, in public, in a single day.
10roadmap
fair launch on Robinhood Chain, the progressive toll and the Forest live, the first daily Tithe.
the daily Loxley Report published onchain and to x, with a public dashboard of the Forest and every Tithe.
governance over toll tiers and Tithe weighting handed to the Merry Men, and tooling for other communities to run their own Forest.
11risks, honestly
- tax friction. a progressive toll adds cost to trading, heaviest for whales. that is the design, but it does mean LOXLEY is built for holders, not high-frequency flippers.
- threshold gaming. the tier system is robust but not magic. weighting and hold-time rules are tuned to make splitting unprofitable, and governance can adjust them.
- chain risk. Robinhood Chain is new and its sequencer is centralized. LOXLEY inherits the chain's risks like any token on it.
- it is a token. redistribution is a mechanic, not a promise of price. hold what you are comfortable holding.