Emission Mechanics

Stakers earn from two sources: the base rate emissions on stXRP, and protocol-related rewards funded by protocol emissions boosts. This page explains how each accrues and how Firelight Points fit in.

Source	What it is	How it accrues
Base rate emissions	The native staking rate on stXRP from coverage premiums	Accrues into the vault, raising the position's redemption value
Protocol-related rewards	Rewards funded by protocol emission boosts	Protocol emission boosts are distributed outside of the vault to directly to stakers

How coverage premiums accrue

Settled premiums stream into the vault on a regular cadence rather than as a single period-end distribution, so a deployment made mid-period begins earning shortly after deployment. Premiums are converted into the vault's collateral asset and compound into the redemption value.

Protocol-related rewards

In addition to auto-compounding coverage premiums, stakers can receive emission boosts for participation. Protocol-related rewards are claimable rather than auto-compounded.

Firelight Points

Firelight Points carry over from Phase 1 into the coverage phase. They accrue based on the amount staked and the time held, and run alongside the base rate emissions and other rewards above as a loyalty and engagement measure. They are not a claim on premiums.

How points are calculated

Your Firelight Points are determined by three factors: the total amount of stXRP you hold (both in your wallet and deployed in DeFi protocols), the length of time you hold it, and your Boost. Balances are snapshotted hourly on the last block of each hour, and points accrue for every fully completed hour.

$$\text{Firelight Points} = \left( \text{stXRP}_{\text{held}} + \text{stXRP}_{\text{DeFi}} \right) \times \text{Time}_{\text{held}} \times \text{weightedBoost}$$

weightedBoost is determined by the different boosts assigned to holding stXRP and the different boosts assigned to DeFi deployments of stXRP. The calculation runs continuously, rewarding consistent participation in the ecosystem.

What stakers see in practice

1. Stake FXRP and receive stXRP as a vault position.

2. The position's redemption value rises continuously as base rate emissions accumulate.

3. Firelight Points accrue based on amount and duration staked.

4. To exit, initiate an unstake (redeeming your stXRP and ending emissions accrual), wait for the unstaking window to end at the close of the following cover period, then withdraw the underlying FXRP.

Where to read next

• Risk and Exposure covers the other side of the return profile, plus capacity and leverage.

• Deployments and Withdrawals covers what accrues during an active position.