RFI works by applying a 1% 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 are immediately reflected in the holders balance.

Innovations in the reflect.finance smart contract allow certain addresses, like the Uniswap pool or exchange wallets, to be blocked from earning fees. Because of this, 100% of the fees generated go to holders of the token. The percentage of fees you earn is calculated by the percentage of RFI that you own among holders. This generates a much higher yield than would be possible otherwise.

RFI holders can use their tokens in third party lending, yield farming, or any other smart contract in addition to earning yield from the transaction fees. To facilitate this, the RFI smart contract exposes some new methods that allow staking contracts to easily determine the fees earned by each holder for any period of time even when funds are pooled together. This is a huge leap that enables direct staking of RFI and double yield generation.