There are two options for receiving rewards on the "Earn" page: "Compound" and "Claim". When you choose "Compound", your pending Multiplier Points and future Escrowed MPX rewards will be staked, which will increase the number of rewards you receive. When you select "Claim", any pending rewards will be transferred to your wallet.
If you choose to compound or stake your Escrowed MPX tokens, you can unstake them for vesting at any time in the future.
Escrowed MPX (esMPX) can be used in two ways once the token is launched:
- it can be staked for rewards similar to regular MPX tokens
- it can be vested to become actual MPX tokens over a period of one year
Each staked esMPX token will earn the same amount of esMPX and FTM rewards as a regular MPX token. It is important to note that esMPX is not meant to be transferable unless you are transferring your entire account. The amount of MPX or MLP required to vest esMPX is unique to each account and is capped at the rewards received by that account.
It is not recommended to buy esMPX on the market or through OTC channels, as you will not be able to vest them.
The process of converting Escrowed MPX (esMPX) tokens into MPX tokens is called vesting. This can be done on the "Earn" page. When vesting is initiated, a certain number of MPX or MLP tokens will be reserved. This number is determined by the average amount of MPX or MLP tokens that were used to earn the esMPX rewards.
For example, if you staked 1000 MPX and earned 100 esMPX tokens, then to vest 100 esMPX tokens, 1000 MPX tokens will be reserved. To vest 50 esMPX, 500 MPX tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.
While esMPX tokens that have been unstaked and deposited for vesting will not earn rewards, staked tokens that are reserved for vesting will continue to earn rewards. After initiating vesting, the esMPX tokens will be converted into MPX every second and will fully vest over 365 days. Vested esMPX tokens that have been converted into MPX can be claimed at any time.
If you sell MPX or MLP tokens and want to vest your esMPX rewards at a later time, you will need to re-buy the MPX or MLP tokens. MPX, esMPX, and Multiplier Points can all be used interchangeably for the required reserve amount. It is possible to deposit into the vesting vault while existing vesting is ongoing.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, the user can use the "Withdraw" button on the "Earn" page. However, partial withdrawals are not supported, so withdrawing will withdraw and unreserve all of the tokens as well as pause vesting. Any esMPX tokens that had already been vested into MPX will remain as MPX tokens.
Multiplier Points (MPs) are rewarded to long-term holders of MPX tokens that do not increase the overall supply of MPX. When you stake MPX, you earn MPs at a fixed rate of 100% APR. For example, if you stake 1000 MPX for one year, you will earn 1000 MPs.
You can earn more rewards by staking MPs. To do this, go to the "Earn" page and press the "Compound" button. Each MP will boost the annual percentage rate (APR) of rewards at the same rate as a regular MPX token.
When you unstake MPX or esMPX tokens, the corresponding amount of MPs will be burned. For example, if you have staked 1000 MPX and earned 500 MP so far, unstaking 300 MPX will burn 150 MPs
(300 / 1000 * 500). The burn will apply to all MPs, whether staked or unstaked. To transfer staked tokens without burning MPs, use the "Transfer" button on the "Earn" page.
The "Boost Percentage" shown on the "Earn" page shows the boost to your FTM APR from your MPs. For example, if the APR for FTM rewards is 10% and you have $10,000 worth of MPX and esMPX, your annual rewards would be $1000. If you also have an amount of MP equivalent to 20% of your total MPX and esMPX, your "Boost Percentage" would display as 20% and you would receive an additional $200 in FTM rewards per year. The Boost Percentage is calculated using the following formula:
Boost Percentage = 100 * (Staked MPs) / (Staked MPX + Staked esMPX)
/* An example: */
100 * (4.5656) / (7.54 + 2.00) = 47.85%
Boost Percentage = 47.85%
Escrowed MPX tokens will be distributed to staked MPX and MLP tokens according to schedules set by governance. Rewards are distributed every second to staked tokens. The reward rate is evaluated monthly and may be subject to change (any such change would be announced at least 7 days before implementation).
Here is a summary of the rewards and mechanics:
- MPX tokens earn FTM, esMPX, and Multiplier Points when staked
- esMPX tokens earn FTM, esMPX, and Multiplier Points when staked
- Multiplier Points boost FTM APRs when staked
- MLP tokens earn FTM, and esMPX and are automatically staked when minted