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# Multiplier Points

How Multiplier Points work

Multiplier Points are a type of reward that is designed to benefit long-term holders without causing inflation.

When someone stakes $KTC, they receive Multiplier Points every second at a fixed annual percentage rate (APR) of 50%.

For example, if someone stakes 1000 $KTC tokens for one year, they will receive 500 Multiplier Points. These points can then be staked to earn fee rewards by using the "Compound" button on the Earn page. Each Multiplier Point earns the same amount of $BNB rewards as a regular $KTC token. This means that long-term holders can earn more $BNB rewards over time.

To use the Multiplier Points, users must ensure that their $KTC and $esKTC tokens are staked. When someone unstakes $KTC or $esKTC tokens, the proportional amount of Multiplier Points is burned. This means that users must be careful when unstaking their tokens and should only do so when they are ready to convert them into $KTC tokens or withdraw them from the Vesting Vault.

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**Example:**In the scenario where 1000 $KTC is staked and 200 Multiplier Points have been earned so far, then unstaking 500 $KTC would burn 100 Multiplier Points.

The burn will apply to the total amount of Multiplier Points which includes both staked and unstaked Multiplier Points.

To summarize, the "Boost Percentage" displayed on the Earn page represents the extra reward amount you will receive due to the Multiplier Points you have earned from staking $KTC. This boost percentage is calculated based on the total value of your staked $KTC and $esKTC tokens, and the amount of Multiplier Points you have earned.

For example, if you have $10,000 worth of $KTC and $esKTC tokens staked with an annual reward rate of 10%, you would earn $1000 per year. If you have earned Multiplier Points equivalent to 20% of your total staked tokens, your "Boost Percentage" would display as 20%, and you would earn an extra $200 per year on top of the $1000.

The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked $KTC:

Boost Percentage = 100 * (Multiplier Points) / (Staked $KTC + Staked $esKTC)

It's important to note that the Boost Percentage only applies to the $BNB rewards earned from staking $KTC and $esKTC, not to the rewards earned from staking Multiplier Points themselves. Additionally, if you unstake your $KTC or $esKTC tokens, the proportional amount of Multiplier Points you have earned will be burnt.

Last modified 14d ago