Multiplier Points
Rewarding long-term investment without inflation
Last updated
Rewarding long-term investment without inflation
Last updated
Multiplier Points are used to reward long-term holders of the CHARM token by boosting the amount of TLOS fee rewards that they received from the trading platform. The Multiplier mechanic enables enhanced rewards to be paid without adding inflationary pressure to the CHARM token.
By staking either CHARM or escrowed CHARM (esCHARM) in the Staking Pools investors automatically receive a share of the 30% of the platform fees. The share received is dependent on the amount of CHARM/esCHARM that the user has staked, however this share can be increased by using Multiplier Points.
Multiplier Points can only be earned by staking CHARM or esCHARM in one of the staking pools. When an investor stakes either CHARM or esCHARM they are automatically awarded Multiplier Points every second at a fixed rate of 100% APR. This means that if an investor stakes 1000 CHARM/esCHARM for one year they would earn 1000 Multiplier Points.
The current user balance of Multiplier Points can be viewed in the 'Total Rewards' console of the Earn Page.
Multiplier Points are directly linked to the investors average staked balance. This means that if the investor unstakes their CHARM or esCHARM then a proportion of the Multiplier Points will be burned. The burn will apply to the total amount of Multiplier Points allocated to the account. and can be calculated as follows:
For example, if an investor has earned 5000 Multiplier points by holding an average staked balance of 10,000 CHARM then, if they choose to remove 3000 CHARM from the staking pool then 1500 Multiplier Points will be burned. (5000 x 3000/10,00)
Multiplier Points can be used to boost the rewards received from staking CHARM andd esCHARM, however, in order to benefit from the multiplier effect users must first apply the Multiplier to their account. This can be done by pressing the 'Compound' button on the 'Total Rewards' console of the Earn Page. The balance of staked and unstaked Multiplier points can also be viewed here.
Once applied the boost percentage for both CHARM and esCHARM staking will be shown in the 'CHARM' console of the Earn Page
The 'Boost Percentage' is calculated as a the ratio of the Staked Mulitiplier Points to the total staked balance.
Example
If the TLOS rewards that are being distributed from the platform fees are 10% APR and the user has $1000 worth of CHARM and esCHARM staked then the base rewards received by the user will be $100 (10% x $1000). However if the user also has 'Boost Percentage' of 20% resulting from their staked Multiplier Points then they will receive an additional $20 (20% x $100). The overall rewards are therefore calculated as follows:
