# How USDz Rewards are Distributed

### **Rewards Distribution**

#### *Epoch Duration:*

* Distributions are started every Monday (US time). Rewards are emitted over every epoch, with each epoch lasting 7 days.

### **Vesting of Rewards**

Rewards are vested over the duration of each epoch.

To earn the full rewards for an epoch, users must remain staked for the entire 7 days.

If a user stakes for less than the full epoch, they receive a proportional amount of rewards. For example, staking for 1 day earns 1/7 of the epoch's rewards, 2 days will earn 2/7, and so on.

Similarly, if a user begins staking halfway into the epoch, they will only earn up to half the proportional share of staking rewards, because the first half would have already been vested to existing stakers.

### **Earning and Compounding Rewards**

#### *Base Reward Rate:*

* The base reward rate for staking is 1x, which is lower than other actions because stakers receive rewards in real-time.

#### *Cooldown Period Earnings:*

* Funds in the cooldown period do not earn rewards since they have been unstaked.
* However, these funds still earn points. This ensures that only active stakers who are contributing to the stability of the system receive staking rewards.

#### *Compounding Rewards:*

* Rewards automatically compound into each user’s balance, meaning there’s no need to spend gas to claim rewards.
* For example, if a user’s starting balance is 1000 USDz and they receive 100 USDz in rewards, their balance will increase to 1100 USDz. If the user then unstakes their entire position, they will receive 1100 USDz instead of just the original 1000 USDz.

### **Partial Unstaking**

* The staking program allows for partial unstaking, which provides more flexibility for stakers
* For example, if a user stakes 1000 USDz and decides to unstake 200 USDz, the remaining 800 USDz will continue to earn staking rewards.
* This partial unstaking option ensures users can manage their funds according to their needs without losing out on the benefits of the staking program.


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