Phase 2 will last 2 Epochs of 28 days each.

For each Epoch within Phase 2, we count a numerator of points accumulated for each user ID, and let the denominator be the sum of all points for all users. At the end of the Epoch, the closing user points number divided by the sum of all aggregate points equals the proportion of earnings of BKT that will be paid to that user.

For each user:

- At a base level, we count each dollar or equivalent currency unit of value of volume traded to be one point. (i.e. $100 of volume in one trade or in many trades is still $100 of volume and thus 100 points either way)
- When counting each trade for a user, we introduce a points multiplier. With this multiplier, the number of points earned per trade is multiplied by the applicable fee tier for that user based on the table below.

Table B: Phase 2 Points Multiplier

Fee Tier |
Points Multiplier |

Any other fee tier, |
0 |

BKT 1 Starter |
0 |

BKT 2 Bronze |
1 |

BKT 3 Silver |
2 |

BKT 4 Gold |
4 |

BKT 5 Ultra |
8 |

Only users who hold a balance of 501 BKT or greater and are in the applicable fee tier will have their activity counted towards the program.

**Example 1**:*James trades $1 of volume 10 times and therefore has $10 of total volume traded. He is in fee tier BKT 5, so his activity will count as 80 points.*

*Alice is in fee tier BKT 2, and completes 10 trades of $100 value each for a total of $1000 of volume. Her activity would count as 1000 points.*

Just the same as Phase 1, users have the ability to trade as often and with as much volume as they would like, and over the course of the Epoch this will affect their total proportional rewards as more points are counted from the aggregate activity of Blocktane. It is likely that a user would need to earn points throughout the Epoch to maintain their expected share of the BKT distribution at the end of the Epoch as they might have been eligible for in the early part of the Epoch.

Our other Example from Phase 1, repeated below here is still valid.

**Example 2**:

*James trades accumulates a score of 1000 points from his trading by the 10th day of the Epoch. The total points earned by all Blocktaners up to that point is 100,000 points. At that moment, James’ expected share of the bonus pool is 1,000/100,000 = 1%. Since the bonus pool is 1,000,000 BKT this means James would expect to receive 10,000 BKT.*

*By the 20th day if James has not earned any more points, his total score remains 1000. However, other Blocktaners have traded and the total points sum of all users is now 500,000. As a result at that moment in time, James’ expected share of the bonus pool has declined to 1000/500,000 = 0.2%, and therefore 2,000 BKT.*

*James, and any other user may continue to earn as many points as they would like up to 15:00:00 UTC of the closing date of the Epoch to compete for any share of the bonus pool they may wish to earn.*

James would still face the same changing proportional share of the bonus pool over the course of the Epoch, based on his number of points earned. However, his number of points would now be focused on the total US Dollar equivalent value volume he trades, rather than the unit count of his total trades. He could complete one very large trade and receive the same number of points as with many small dollar value trades.