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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)

 
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