# Rewards

#### There are two reward options on the platform: "Compound" and "Claim". 

* *Compounding will stake your pending Multiplier Points and Escrowed EDX rewards, increasing the amount of rewards you receive. Claiming will transfer any pending Escrowed EDX rewards and BSC/MATIC rewards to your wallet. If you compound or stake your Escrowed EDX tokens, you can unlock them for receipt at any time later on.*

#### *The Escrowed EDX tokens can be used in two ways:*

1. *Staked to receive rewards similar to regular EDX tokens.*
2. *Vested to become actual EDX tokens over a period of one year.*

#### Vesting 

* *Escrowed EDX (esEDX) tokens can be converted into EDX tokens through vesting, which can be accessed on the Earn page. When vesting is initiated, the average amount of EDX tokens that was used to earn the rewards will be reserved. 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.*

#### Multiplier Points 

* *The third reward that EDX stakers in Equilibrium receive is not a token, but comes in the form of multiplier points (MPs). Like in a game, these points give you access to rewards, but you can also lose them if you undertake certain actions.* 
* *Let's look at the rewards first:* 

*-> MPs are awarded at a 100% annual percentage rate (APR).* 

*->Each EDX can be staked to earn the same amount of ETH as an EDX token.* 

*In this regard, MPs are similar to staked esEDX: they allow you to increase your MATIC payout.* 

*But in order to keep your points, you have to keep your EDX and esEDX staked. Unstaking EDX or esEDX will result in a burning of multiplier points proportional to the amount of tokens being unstaked.* 

#### Example

*If you staked 1000 EDX and accrued 200 MPs so far, then unstaking 500 EDX - 50% of your staked amount - will burn 100 MPs. This gamified system rewards you points for staying staked for longer, as the only way to acquire multiplier points is through staying staked for the long haul.*

#### Distribution Rate

*Distribution rates change on a monthly basis.*

Dec 2022: 50,000 esEDX for EDX provider & 50,000 esEDX for EDX staker \
Jan 2023: 60,000 esEDX for EDX provider & 60,000 esEDX for EDX staker \
Feb 2023: 50,000 esEDX for EDX provider & 50,000 esEDX for EDX staker \
Mar 2023: 50,000 esEDX for EDX provider & 50,000 esEDX for EDX staker \
Apr 2022: 50,000 esEDX for EDX provider & 50,000 esEDX for EDX staker


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