Compound Loyalty Curves
stacked reward models tied to engagement duration
Compound Loyalty Curves are time-based systems that layer multiple incentivesÔÇösuch as yield, access, governance power, or unlocksÔÇöbased on how long a user stays committed to a protocol. These curves compound benefits over time, creating nonlinear growth in privileges for users who continuously engage without resetting. The result is a powerful flywheel where loyalty unlocks exponential utility, not just proportional rewards.
Use Case: A staking platform begins users at base APR, but activates bonus multipliers, governance rights, and exclusive vaults at 30, 60, and 120 days. Each layer compounds on the previous, creating a curve where deeper loyalty unlocks disproportionately greater benefitsÔÇömaking exit decisions more difficult over time.
Key Concepts:
- Reward Multipliers ÔÇö Increased yield rates based on holding or staking streaks.
- Access Maturity Curves ÔÇö Functional unlocks tied to time-based milestones.
- Layered Utility ÔÇö Progressive benefit stacking based on user loyalty.
- Reset Penalty Systems ÔÇö Full progress loss if streak is broken or loyalty lapses.
Summary: Compound Loyalty Curves transform long-term protocol use into an exponential-value experience. By aligning user behavior with duration, they build economic gravityÔÇörewarding depth over speed and creating a structured ecosystem where trust, time, and performance are all compounding forces.
| Duration | Unlocked Benefit | Behavior Reinforced | Reset Risk |
|---|---|---|---|
| 0ÔÇô29 Days | Base Yield | Initial Commitment | None |
| 30ÔÇô59 Days | Yield Multiplier + Access Tier | Emerging Loyalty | Partial Reset |
| 60ÔÇô119 Days | Governance + Premium Vaults | Advanced Participation | Full Reset |
| 120+ Days | Max APR + Ecosystem Influence | Protocol-Aligned Loyalty | Hard Reset |