Rewards
CION Rewards provide benefits for long-term users of the protocol. These rewards come in the form of Escrowed CION and Multiplier Points.
Compounding vs Claiming
There are two options for rewards on Earn: "Compound" and "Claim".
Compounding will stake your pending Multiplier Points and Escrowed CION rewards, this will increase the number of rewards you receive.
Claiming will transfer any pending Escrowed CION rewards and CANTO rewards to your wallet.
If you compound or stake your Escrowed CION tokens, you can unstake them for vesting at any time later on.
Escrowed CION
Escrowed CION (esCION) can be used in two ways:
Staked for rewards similar to regular CION tokens
Vested to become actual CION tokens over a period of one year
Each staked Escrowed CION token will earn the same amount of Escrowed CION and CANTO rewards as a regular CION token.
Note that Escrowed CION (esCION) is not meant to be transferrable unless you are doing a complete account transfer. The amount of CION or CLP required to vest esCION is unique per account and capped to the rewards received by that account. Please do not buy esCION off the market or OTC as you will not be able to vest them.
Vesting
Escrowed CION (esCION) tokens can be converted into CION tokens through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of CION or CLP tokens that were used to earn the esCION rewards will be reserved.
For example, if you staked 1000 CION and earned 100 esCION tokens, then to vest 100 esCION tokens, 1000 CION tokens will be reserved. To vest 50 esCION, 500 CION 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.
esCION 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 esCION tokens will be converted into CION every second and will fully vest over 365 days. esCION tokens that have been converted into CION are claimable at any time.
If a user sells CION or CLP tokens and would like to vest their esCION rewards, later on, they would need to re-buy the CION or CLP tokens. CION ,esCION, and Multiplier Points can be used interchangeably for the required reserve amount.
Depositing into the vesting vault while existing vesting is ongoing is supported.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported so withdrawing will withdraw and unreserve all tokens as well as pause vesting. All esCION tokens that had been vested into CION will remain as CION tokens.
Multiplier Points
Multiplier Points reward long-term holders without inflation.
When you stake CION , you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 CION staked for one year would earn 1000 Multiplier Points.
Multiplier points can be staked for fee rewards by pressing the "Compound" button on the Earn page, each multiplier point will boost CANTO APRs at the same rate as a regular CION token.
When CION or Escrowed CION tokens are unstaked, the proportional amount of Multiplier Points is burnt. For example, if 1000 CION is staked and 500 Multiplier Points have been earned so far, then unstaking 300 CION would burn 150 (300 / 1000 * 500) Multiplier Points. The burn will apply to the total amount of Multiplier Points, including both the staked and unstaked.
To transfer staked tokens without burning Multiplier Points, use the Transfer button on the Earn page.
The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the CANTO APR is 10% and you have $10,000 worth of CION and esCION, then your rewards would be $1000 annualized if you additionally have several Multiplier Points equivalent to 20% of your total amount of CION and Escrowed CION , your "Boost Percentage" would display as 20%, and you would get an extra $200 of CION rewards annualized. The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked CION:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked CION + Staked esCION)
An example:
100 * (4.5656) / (7.54 + 2.00) = 47.85%
Summary
A summary of rewards and mechanics:
CION: earns CANTO, esCION, and Multiplier Points when staked
esCION: earns CANTO, esCION, and Multiplier Points when staked
Multiplier Points: Boost CANTO APRs when staked
CLP: earns CANTO, esCION, automatically staked on mint
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