> For the complete documentation index, see [llms.txt](https://ascendlaunch.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ascendlaunch.gitbook.io/docs/staking-and-rewards/hype-staking-and-rewards.md).

# HYPE staking and the HYPE Points Program

> **Live on Elysium mainnet:** launches and trading on USDC, HYPE and KNTQ pairs, creator fees, coin support, and Holder Rewards and Buyback coins. Protocol fees are split on chain, and each leg holds the asset it was paid in. Staking, the HYPE Points Program, Ascend NFTs, the Ascend Points Program and ecosystem-token buybacks are not live yet.

The HYPE Points Program rewards eligible Ascend staking positions with HYPE. Participation uses **kHYPE, Kinetiq's liquid staking token, deposited into the Ascend user vault**. The underlying HYPE staking is handled by Kinetiq's system; the deposited kHYPE is held by the Ascend vault smart contract.

kHYPE represents staked HYPE exposure. Kinetiq reflects staking rewards in its exchange rate relative to HYPE, rather than by continually increasing the holder's token balance. See [Kinetiq's staking overview](https://kinetiq.xyz/docs).

Ascend uses yield attributable to an eligible vault position to purchase qualifying ecosystem tokens for that participant. These distributions are separate from HYPE Points Program rewards. **Holding kHYPE in a wallet without depositing it into the Ascend vault does not establish an Ascend vault staking position.**

## How to enter and exit the staking position

**Acquire kHYPE → approve and deposit into the Ascend vault → participate in the applicable reward mechanisms → withdraw kHYPE → separately convert to HYPE if needed.**

1. **Acquire kHYPE through a supported route.** Use the supported asset and network for the Ascend vault you intend to use.
2. **Approve and deposit kHYPE.** The deposit transfers kHYPE from your wallet to the vault contract and records your principal position. A token approval alone is not a deposit.
3. **Participate through the vault position.** The vault accounts for principal separately from booked yield. Yield attributed to the position supports the ecosystem-token distribution mechanism; additional HYPE rewards follow their own accounting and eligibility rules.
4. **Withdraw from the vault in kHYPE.** Redeem your principal shares for the kHYPE amount calculated by the vault, subject to its withdrawal checks and your minimum-output setting. Withdrawal does not itself return native HYPE.
5. **Convert kHYPE to HYPE separately when needed.** Use an available market-swap or Kinetiq redemption route on a supported network. That conversion has its own liquidity, pricing, processing, and network requirements.

The vault deposit is a separate smart-contract interaction from Kinetiq's underlying staking. The deposited kHYPE is held by the vault contract, rather than remaining in the user's wallet. Describing the underlying HYPE as staked through Kinetiq does not mean no assets are deposited into Ascend contracts.

## How the HYPE Points Program is funded

Ascend allocates 90% of protocol fees to buybacks. HYPE receives 20% of that allocation, and half of the purchased HYPE funds the HYPE Points Program. This is equivalent to **9% of total protocol fees**.

Rewards are paid in HYPE. The program does not introduce a separate HYPE Points token.

## Reward allocation and NFT boosts

HYPE Points Program rewards are available to eligible staking positions without an NFT at the standard 1.0 boost factor.

An **activated Ascend NFT** unlocks three additive components:

| Component          |             Boost |
| ------------------ | ----------------: |
| Base NFT boost     |          **+15%** |
| Staking-rank boost |    **0% to +50%** |
| NFT-tier boost     | **+5% to +17.5%** |

**Total boost = base NFT boost + staking-rank boost + NFT-tier boost**

**Boost factor = 1 + total boost**

**Reward weight = eligible stake × boost factor**

**HYPE allocation = available HYPE × participant's reward weight ÷ total eligible reward weight**

The maximum combined reward-weight boost is **+82.5%**, or a 1.825 boost factor, for rank #1, **The Ascended One**, with an activated one-of-one NFT. Rank-band boosts do not stack, and only one eligible activated NFT contributes to a staking position's boost factor.

An NFT changes how available HYPE is divided; it does not increase the pool's size or produce a standalone HYPE payout. Reward-weight boosts do not establish a fixed return and do not guarantee an equal percentage increase in HYPE received. See [Ascend NFTs: Yield Boosters](/docs/ascend-nfts.md) for the complete rank schedule, NFT tiers, supplies, and worked examples.

Rewards vary with protocol fees, purchase prices, eligible stake, and applicable reward weights. The funding allocation does not establish a fixed APY.

### NFT activation and program access

NFT activation requires staking the NFT through Ascend and completing a **three-day activation period**. Once activated, the NFT unlocks both the applicable HYPE staking boost and **Ascend Points Program eligibility**. Holding an inactive NFT does not unlock either benefit.

An eligible HYPE staking position is separately required to receive boosted HYPE rewards. For the Ascend Points Program, an activated NFT grants only access; qualifying activity earns points, which can be used for KNTQ under the relevant season's rules.

NFT unstaking has a **seven-day withdrawal period**. Under the proposed exit rules, the NFT's HYPE boost and new Ascend Points Program eligibility stop when NFT unstaking is requested. An otherwise eligible HYPE staking position can continue at its standard unboosted weight.

The NFT activation and withdrawal periods are separate from redemption of the kHYPE vault position and from Kinetiq's underlying HYPE staking.

## Ecosystem-token distributions

The amount available for ecosystem-token purchases reflects realized staking yield, applicable staking charges, and execution costs. Each staker receives the actual quantity of tokens purchased with the yield attributable to that staker.

For example, if a staker's attributable yield purchases **10 tokens** of a project, that staker receives **10 tokens** of that project.

NFT boosts do not change Kinetiq's underlying staking rate or the allocation of ecosystem tokens. Yield used for these purchases has been converted into ecosystem tokens and should not also be counted as a separate HYPE return.

## Related programs

| Program or distribution       | Funding source                                                | Allocation basis                                                   |
| ----------------------------- | ------------------------------------------------------------- | ------------------------------------------------------------------ |
| HYPE Points Program           | 50% of HYPE purchased through the protocol buyback allocation | Eligible stake and applicable boost factor                         |
| Ecosystem-token distributions | Staking yield attributable to the participant                 | The participant's attributable yield and actual token purchases    |
| Ascend Points Program         | Funding assigned from the strategic KNTQ ecosystem allocation | Earned Ascend Points from qualifying activity under seasonal rules |

The Ascend Points Program follows its published seasonal rules. Qualifying staking activity can earn Ascend Points when the participant has an activated NFT. Accumulated points are then used for KNTQ under those rules. NFT reward boosts apply only to the HYPE Points Program; they do not automatically increase Ascend Points earned.

## Staking and unstaking

The Ascend vault does not impose a fixed-duration staking lock. Vault redemptions return **kHYPE**, subject to the contract's position, balance, minimum-output, and partial-withdrawal checks. The redeemable amount follows the vault's principal accounting; it is not a promise of a fixed HYPE value or the original number of kHYPE tokens deposited.

Converting withdrawn kHYPE into HYPE is a separate step. Native Kinetiq redemption can involve a delay, while a market swap depends on available price, liquidity, and slippage. A route may also require using another supported network. A successful vault withdrawal does not guarantee immediate conversion into HYPE at full underlying value.

Review the withdrawal route and transaction details before entering or exiting a position. [Kinetiq's kHYPE guide](https://kinetiq.xyz/docs/khype) explains its native redemption and market-swap routes.

For the complete funding model, see [Protocol revenue allocation](/docs/protocol-economics/protocol-revenue-allocation.md). For program-specific rules, see [Ascend Points Program](/docs/ascend-points.md) and [Trading profiles](/docs/trading-profiles-and-referrals.md).