Instructions for Claiming Rewards

What exactly are Rewards?

Rewards are perks made claimable in $RARE to stakers as compensation for their support of the person they staked on, and for the valuable curation data they generate in doing so.

If someone you've staked on has Rewards available, you can claim them from their Community Pool page – you'll see a little notification indicating that they're ready!

How do Rewards accrue?

Rewards accrue in Community Pools whenever the Artist or Collector who is staked on makes a sale on a compatible marketplace.

Rewards accrue per fixed periods of time known as Rounds. Rounds are 7-day periods of time used to track xRARE ownership and the accumulation of rewards in a pool. The 7-day countdown is triggered by new activity in the pool.

You can claim Rewards from multiple Rounds at once, all in one claim transaction, or per each end-of-round if you wish.

What are Reward Swaps?

Technically speaking: Reward Swaps are transactions performed through specialized smart contracts called Reward Accumulators.

In effect: Reward Swaps allow you to convert non-RARE currencies (such as ETH or ERC-20 tokens) related to the pool into $RARE tokens.

Rewards must be converted to $RARE via the Reward Swap in order to make rewards claimable for all – you receive a 10% bonus on the ETH you swap out as a thank you for the $RARE swap in!

To swap Rewards, go to a profile on the app -> click "Community Pool" -> click the "Stake" button -> select "Reward swaps" then specify how much $RARE do you want to swap.

Tip: You can effectively tip an entire community of stakers on a Community Pool by sending funds to the Reward Accumulator address. This makes the pool grow larger and incentivizes more staking activity!

Read more about Reward Swaps in the Reward Accumulator section of the whitepaper.

How are Rewards calculated?

Your Reward payout is calculated based on your "position" in the pool per round, aka your amount of ownership of the pool per measured interval of time. Your position is calculated using xRARE, which helps to track your ownership of a pool as it evolves.

What is xRARE? How does it affect my Rewards?

The amount of RARE you’re entitled to in each Reward Round is proportional to your ownership of the pool, measured in xRARE. xRARE, known as synthetic RARE, is a credit you are issued whenever you stake, and serves as a placeholder that symbolizes your portion of the pool.

xRARE is not a currency you need to worry about protecting – while your ownership of xRARE is tracked on the blockchain, it is not a currency that lives in your wallet or is tradeable on any markets. Its only utility is to measure your position in a pool, or in other words, the amount of the pool you are entitled to.

Read more about how Rewards accumulate in the Specification section of the Staking whitepaper.