# Warm-up Periods

**Warm-Up Period** is a novel reward mechanism that applies a **dynamic multiplier** to each staked position based on its **total duration staked in range**, which is taken into account when calculating the staking reward. This mechanism is designed to encourage long-term liquidity provision while offering flexibility for those who often need to adjust their price range to remain active due to liquidity concentration.

#### Understanding the Warm-Up Period Mechanism

1. **Keep Staking for Higher Rewards:** A penalty is applied to a newly staked position, which decreases gradually over time in 4 ranges. To earn maximum rewards, the position must be staked for more than 30 days.
2. **Unstaking Resets Your Progress:** Unstaking your position will reset your progress to the lowest multiplier. Once you reach the highest multiplier, you must keep your position staked to maintain maximum rewards.
3. **Residual Rewards from Penalities:** [$GNS Incentives](https://docs.gnoswap.io/core-concepts/liquidity-mining#id-1-usdgns-incentives) that are undistributed due to penalties for unstaking before reaching 30 days are sent to [the community pool](https://docs.gnoswap.io/gnoswap-token/emission#id-3.-community-pool). For [external Incentives](https://docs.gnoswap.io/core-concepts/liquidity-mining#id-2-external-incentives), any remaining rewards are returned to the incentive provider's wallet at the end of the distribution period.

Multipliers are divided into 4 different ranges as the following:

* 0 to 5 days: `estimatedRewards * 0.3`
* 6 to 10 days: `estimatedRewards * 0.5`
* 10 to 30 days: `estimatedRewards * 0.7`
* More than 30 days: `estimatedRewards * 1.0`

As highlighted above, **penalties (undistributed amounts) occur when staked positions are unstaked before reaching 30 days for full rewards.** In the case of [$GNS incentives](https://docs.gnoswap.io/core-concepts/liquidity-mining#id-1-usdgns-incentives), the residual rewards from penalties are sent to[ the community pool](https://docs.gnoswap.io/gnoswap-token/emission#id-3.-community-pool), a fund managed by [xGNS](https://docs.gnoswap.io/gnoswap-token/xgns) holders through [governance](https://docs.gnoswap.io/core-concepts/governance). For [external Incentives](https://docs.gnoswap.io/core-concepts/liquidity-mining#id-2-external-incentives), they are sent to the incentive provider's wallet at the end of the distribution period set by the incentive provider.

This mechanism strikes a balance **between encouraging long-term participation in staking and accommodating the needs of those who seek flexibility** for their staked positions to remain active due to [liquidity concentration](https://docs.gnoswap.io/core-concepts/amm/concentrated-liquidity).