Loyalty Multipliers
reward scaling by user commitment
Loyalty Multipliers are bonus reward factors applied to users who maintain consistent participation, staking, or engagement within a Web3 platform over time. These multipliers increase a user’s earnings, governance weight, or access level based on behavioral loyaltyÔÇösuch as how long they’ve held tokens, how frequently they interact, or whether they meet time-based thresholds. Loyalty multipliers are a powerful mechanism to reduce churn and reward true believers in a protocol.
Use Case: A staking protocol offers a base APY of 10%, but users earn +10% for each full month of uninterrupted staking, up to a 50% maximum bonus. Long-term users receive significantly higher rewards without needing to add more capitalÔÇöjust by showing consistent loyalty.
Key Concepts:
- Time-Based Boosts ÔÇö Multiplier increases with continuous holding or staking duration.
- Tier Integration ÔÇö Often tied to loyalty tier systems or access levels.
- Retention Tool ÔÇö Keeps users engaged without requiring constant reactivation.
- Behavioral Alignment ÔÇö Rewards users who support the protocol over the long term.
Summary: Loyalty Multipliers amplify rewards for consistency. By tying yield, access, or influence to time-based commitment, they convert long-term belief into measurable benefitsÔÇöenhancing retention, reducing token sell pressure, and strengthening community trust.
| Duration Committed | Base Reward (No Multiplier) | With Loyalty Multiplier |
|---|---|---|
| 0ÔÇô30 Days | 10% APY | 10% APY |
| 31ÔÇô60 Days | 10% APY | 20% APY |
| 61ÔÇô90 Days | 10% APY | 30% APY |
| 90+ Days | 10% APY | 50% APY (max bonus) |