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# Understanding Multiplier Points (MP) and XP Rewards
# Understanding Multiplier Points and XP Rewards
## Overview
@@ -8,49 +8,74 @@ This document explains:
1. How MP determines XP rewards.
2. How stake amount and lock-up duration affect MP.
3. The role of Initial MP and Accrued MP.
4. Examples illustrating how MP is calculated and accumulated over time.
4. The relationship between XP tokens and the StakeManager.
5. Examples illustrating how MP is calculated and accumulated over time.
## Key Concepts
1. **Initial MP**: Multiplier Points issued immediately based on the stake amount and lock-up duration.
2. **Accrued MP**: MP that accumulate over time as a function of the stake amount, elapsed time, and annual percentage
yield (APY).
3. **XP Rewards**: Determined by the total MP a user holds relative to the total MP in the system.
3. **XP Tokens**: The token rewarded by the system.
4. **XP Rewards**: Determined by the total MP a user holds relative to the total MP in the system.
## Formula for Multiplier Points
### Initial MP
The formula for Initial MP is: \[ \text{Initial_MP} = \text{Stake} \times \left( 1 + \frac{100 \times
T*{\text{lock}}}{100 \times T*{\text{year}}} \right) \]
The formula for Initial MP is derived as follows:
$$
\text{MP}_\text{Initial} = \text{Stake} \times \left( 1 + \frac{\text{APY} \times T_\text{lock}}{100 \times T_\text{year}} \right)
$$
Where:
- **Stake**: The amount of tokens staked.
- **100% APY**: The annual percentage yield.
- **\( T\_{\text{lock}} \)**: Lock-up duration in seconds.
- **\( T\_{\text{year}} \)**: Total seconds in a year.
- $Stake$: The amount of tokens staked.
- $APY$: Annual Percentage Yield, set at 100%.
- $T_{lock}$: Lock-up duration in seconds.
- $T_{year}$: Total seconds in a year.
This formula calculates the MP issued immediately when tokens are staked with a lock-up period.
### Accrued MP
Accrued MP is calculated as: \[ \text{Accrued_MP} = \text{Stake} \times \frac{100 \times T*{\text{elapsed}}}{100 \times
T*{\text{year}}} \]
Accrued MP is calculated for time elapsed as:
$$
\text{MP}_\text{Accrued} = \text{Stake} \times \frac{\text{APY} \times T_\text{elapsed}}{100 \times T_\text{year}}
$$
Where:
- **\( T\_{\text{elapsed}} \)**: Time elapsed since staking began.
- $T_{elapsed}$: Time elapsed since staking began, measured in seconds.
This formula adds MP as a function of time, rewarding users who keep their stake locked.
### Total MP
Total MP is the sum of Initial MP and Accrued MP: \[ \text{Total_MP} = \text{Initial_MP} + \text{Accrued_MP} \]
Total MP combines both Initial MP and Accrued MP:
$$
\text{MP}_\text{Total} = \text{MP}_\text{Initial} + \text{MP}_\text{Accrued}
$$
This total is used to calculate the users share of rewards.
## How MP Affects XP Rewards
The rewards distributed in the system are proportional to each users MP. The reward share is calculated as: \[
\text{Reward}_{\text{user}} = \text{Total_Rewards} \times \frac{\text{MP}_{\text{user}}}{\text{MP}\_{\text{total}}} \]
The rewards distributed in the system are proportional to each users MP. The formula for reward share is:
$$
\text{Reward}_\text{user} = \text{Rewards}_\text{Total} \times \frac{\text{MP}_\text{user}}{\text{MP}_\text{total}}
$$
This ensures rewards are allocated based on the users contribution to the total MP.
## Examples
Lets consider three participants: Alice, Bob, and Charlie. The total reward pool is set at 10,000 XP tokens.
### Example 1: Alice
- **Stake**: 100 tokens
@@ -59,16 +84,33 @@ The rewards distributed in the system are proportional to each users MP. The
#### Initial MP
Using the formula: \[ \text{Initial_MP} = 100 \times \left( 1 + \frac{100 \times 30}{100 \times 365} \right) \] \[
\text{Initial_MP} = 100 \times \left( 1 + 0.082 \right) = 108.2 \]
Using the formula:
$$
\text{MP}_\text{Initial} = 100 \times \left( 1 + \frac{100 \times 30}{100 \times 365} \right)
$$
$$
\text{MP}_\text{Initial} = 100 \times \left( 1 + 0.082 \right) = 108.2
$$
#### Accrued MP
\[ \text{Accrued_MP} = 100 \times \frac{100 \times 15}{100 \times 365} = 4.1 \]
$$
\text{MP}_\text{Accrued} = 100 \times \frac{100 \times 15}{100 \times 365} = 4.1
$$
#### Total MP
\[ \text{Total_MP} = 108.2 + 4.1 = 112.3 \]
$$
\text{MP}_\text{Total} = 108.2 + 4.1 = 112.3
$$
#### Reward Share
$$
\text{Reward}_\text{Alice} = 10,000 \times \frac{112.3}{1,146.7} \approx 978.9
$$
### Example 2: Bob
@@ -78,16 +120,31 @@ Using the formula: \[ \text{Initial_MP} = 100 \times \left( 1 + \frac{100 \times
#### Initial MP
\[ \text{Initial_MP} = 500 \times \left( 1 + \frac{100 \times 90}{100 \times 365} \right) \] \[ \text{Initial_MP} = 500
\times \left( 1 + 0.247 \right) = 623.5 \]
$$
\text{MP}_\text{Initial} = 500 \times \left( 1 + \frac{100 \times 90}{100 \times 365} \right)
$$
$$
\text{MP}_\text{Initial} = 500 \times \left( 1 + 0.247 \right) = 623.5
$$
#### Accrued MP
\[ \text{Accrued_MP} = 500 \times \frac{100 \times 45}{100 \times 365} = 61.6 \]
$$
\text{MP}_\text{Accrued} = 500 \times \frac{100 \times 45}{100 \times 365} = 61.6
$$
#### Total MP
\[ \text{Total_MP} = 623.5 + 61.6 = 685.1 \]
$$
\text{MP}_\text{Total} = 623.5 + 61.6 = 685.1
$$
#### Reward Share
$$
\text{Reward}_\text{Bob} = 10,000 \times \frac{685.1}{1,146.7} \approx 5,975.2
$$
### Example 3: Charlie
@@ -97,19 +154,39 @@ Using the formula: \[ \text{Initial_MP} = 100 \times \left( 1 + \frac{100 \times
#### Initial MP
\[ \text{Initial_MP} = 300 \times \left( 1 + \frac{100 \times 0}{100 \times 365} \right) = 300 \]
$$
\text{MP}_\text{Initial} = 300 \times \left( 1 + \frac{100 \times 0}{100 \times 365} \right) = 300
$$
#### Accrued MP
\[ \text{Accrued_MP} = 300 \times \frac{100 \times 60}{100 \times 365} = 49.3 \]
$$
\text{MP}_\text{Accrued} = 300 \times \frac{100 \times 60}{100 \times 365} = 49.3
$$
#### Total MP
\[ \text{Total_MP} = 300 + 49.3 = 349.3 \]
$$
\text{MP}_\text{Total} = 300 + 49.3 = 349.3
$$
#### Reward Share
$$
\text{Reward}_\text{Charlie} = 10,000 \times \frac{349.3}{1,146.7} \approx 3,045.9
$$
### Total MP Calculation
The total MP for all participants is:
$$
\text{MP}_\text{Total All} = 112.3 + 685.1 + 349.3 = 1,146.7
$$
## Summary
- **Initial MP** is based on the stake amount and lock-up time.
- **Accrued MP** grows over time and adds to the staking power.
- Longer lock-up durations grant more Initial MP, while time increases Accrued MP.
- XP tokens rewards are proportional to their MP.
- Total MP determines the share of XP rewards a participant earns.