# Magic Eden Introduces New Reward Mechanisms for $ME Token Holders
Magic Eden Foundation has unveiled a new system for $ME token holders to earn rewards through staking and completing quests. This new initiative aims to increase participation in the data-driven economy and provide additional incentives for $ME holders.
$ME serves as the cornerstone of Magic Eden’s on-chain economy, facilitating cross-chain transactions, minting, and wallet protocols. As the platform’s official token, $ME rewards users through a variety of asset transactions and represents one of the largest on-chain user communities.
“Want to earn more $ME rewards? If you stake $ME AND do Magic Eden Quests, you’ll unlock more $ME. How staking $ME & questing works,” Magic Eden announced in a tweet dated December 12, 2024.
# Staking and Quests: How to Earn More $ME
Staking involves locking up $ME tokens to support the ecosystem. The amount of $ME staked and the duration it is locked directly influence the user’s staking power, which in turn affects quest participation scores and rewards.
Users can set staking periods ranging from a minimum of one day to a maximum of four years (1,460 days). The longer and more tokens staked, the greater the staking power, which enhances both rewards and influence over DAO governance proposals.
Quests offer additional reward opportunities for $ME holders and are divided into one-time Capsule Quests and repeatable Ongoing Quests. Upon completion, quests grant scores that rank users weekly. Higher rankings secure more substantial rewards. Quests span 90 days, with cumulative scores determining final rewards.
Participation in staking and quests is facilitated through the Magic Eden Foundation website, Magic Eden wallet, or other associated platforms. Users can amplify their staking power by connecting multiple wallets, provided they link through the Magic Eden Foundation’s tool to have their quest scores counted.
Participants can track their rankings via weekly scores, with those in the top 1 percent standing to gain the highest rewards. Staking power applies multipliers to ranking scores, which reset at the end of each chapter.
The Magic Eden Foundation aims to bolster engagement within the $ME ecosystem through staking and quest activities, providing tangible rewards to token holders. Users leveraging $ME gain more opportunities, driving the token’s utility and value within the platform.
