Reward Scaling
adjustable yield mechanics based on time, behavior, or tier
Reward Scaling refers to the mechanism by which user rewards increase or decrease dynamically depending on specific variablesÔÇösuch as staking duration, activity streaks, user tier, or protocol phase. Rather than offering fixed returns, reward scaling aligns incentives with loyalty, timing, or contribution levels, creating an adaptive yield environment that favors consistent engagement over extractive behavior.
Use Case: A vault offering $KAG staking begins with a base APR of 6%. After 30 days, it scales to 10%, and after 90 days to 15%. If a user exits before hitting a threshold, they revert to the original baselineÔÇöcreating a self-reinforcing loyalty curve without the need for hard locks.
Key Concepts:
- Staking Loyalty Curves ÔÇö Yield progression tied to time staked.
- Reward Multipliers ÔÇö Percentage increases based on engagement length or streaks.
- Tiered Utility ÔÇö Different reward bands unlocked by crossing behavioral or capital thresholds.
- Compound Loyalty Curves ÔÇö Stacking multiple scaling conditions across yield, governance, and access.
Summary: Reward Scaling turns static yield into a dynamic engagement engine. It aligns time, trust, and behavior with deeper protocol accessÔÇöprotecting emissions, encouraging alignment, and reinforcing user commitment without relying on rigid locks or inflation.
| Scaling Model | Trigger Variable | User Effect | Protocol Outcome |
|---|---|---|---|
| Time-Based | Days Staked | Increased APR Over Time | Loyalty Reinforcement |
| Tier-Based | User Level or Volume | Access to Premium Yields | Capital Stickiness |
| Behavioral | Streak or Governance | Boosted Multiplier | Protocol Engagement |