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