What are the vesting options when claiming rewards?
When you supply assets to BUSD Earn, Liquid Staking, Lend, and Swap protocols, you earn KAVA rewards instantly. However, after claiming your rewards, you must select a vesting option from the two available choices: 1 month or 12 months, along with standard un-vesting dates.
12-month vesting option:
Suppose you claim your rewards by supplying assets to any of the protocols on the Kava app after some time. If you want to receive your rewards from these high-yield APYs, there are a few important things to consider when choosing the 12-month vesting option:
- Your rewards will become available in your wallet after 12 months, depending on which day you claim.
- Specific days each month will release vested rewards to your wallet on certain dates.
Scenario #1:
I claim my rewards between April 1st and 15th of 2023; I must wait until the 15th of April of the following year, 2024, to receive them.
Scenario #2:
I claim my rewards between April 15th and the last day of April 2023; I must wait until the 1st of May of the following year, 2024, to receive them.
1-month vesting option:
Suppose you claim your rewards by supplying assets to any of the protocols on the Kava app after some time. If you want to receive your rewards from these high-yield APYs but are in a rush to receive your rewards, there are a few important things to consider when choosing the 1-month vesting option:
- Choosing the 1-month vesting option will result in a 4/5th reduction in rewards compared to the 12-month vesting option.
- The reduced rewards will be released to your wallet on specific dates each month, depending on which day you claim your rewards.
Scenario #1:
I claim my rewards between April 1st and 15th; I must wait until the 15th of May to receive them.
Scenario #2:
I claim my rewards between April 15th and the last day of April; I must wait until the 1st of June to receive them.
Commonly asked questions:
Q: What does the 500% vesting bonus represent when choosing the 12-month vesting option?
A: The 500% vesting bonus shows how much more rewards you can earn by choosing the 12-month vesting option rather than the 1-month vesting option. By selecting the 1-month option, you will receive a 4/5th reduction in rewards; meanwhile, the 12-month option represents the full APY figures shown on the Kava app.
Q: Does the day I claim my rewards matter?
A: It is recommended to be mindful of the day you claim your rewards. For example, if you claim your rewards on the 3rd of any month, you will miss out on the rewards accumulated between the 3rd and 15th of that month, which become available in your wallet on the 15th. However, the rewards will continue to accumulate after you claim them, but they will not be included in a vesting period until your next claim. To ensure you claim all rewards earned during that vesting period, it's best to wait until just before the 15th. The same logic applies if you claim rewards between the 15th and the last day of any month.