# What Are AMPs?

Each stake in the CORE is allocated a share of the rewards pool.  This share is dynamically calculated whenever rewards are distributed.  

The share is measured in AMPs.  AMPs are not tokens, but an internal variable used within the CORE.  The share of the staking rewards pool defined by a CORE Stake  = AMPs balance for the stake / total AMPs across all stakes.

AMPs are allocated to a stake on creation or when tokens are added.  The amount of WATT staked is converted to AMPs, much like a swap.  

### WATT to AMPs Conversion

{% hint style="info" %}
TLDR:  As more people stake in the CORE, more WATT value is required to obtain a share of the staking rewards pool.  As fewer people stake in the CORE, the same WATT obtain a larger share of the rewards pool.
{% endhint %}

The conversion ratio of WATT to AMPs is defined by a bonding curve.  This curve lowers the number of AMPs per WATT as more WATT are staked, or raises the number of AMPs per WATT as fewer WATT are staked.  

This internal balancing mechanism requires more economic energy to obtain a larger share of the pool when WATT is scarce, but also creates potential discounts for a larger share when WATT is more available.

This formula defines the amount of AMPs that will be allocated to a new stake, or addition to an existing stake: 

*AMP "cost" in WATT = (2 \* (WATT Value Being Staked + Total WATT Value Currently Staked)) ^ (0.5) - Total Amp*

This calculation is made when creating a stake or adding tokens to an existing stake.  Once the AMPs for a stake are calculated, they will not change until the stake is either ended or added to by the owner.


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