> For the complete documentation index, see [llms.txt](https://documentation.bakerdao.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://documentation.bakerdao.io/stbgt-incentivized-debt.md).

# stBGT-Incentivized Debt

## Passive BGT rewards

Addresses with active loan or loop positions will be eligible to earn passive BGT rewards. The only eligibility criteria is that the position must be opened - or an existing position extended - after block `5623025` 

Rewards will be awarded to users as stBGT via [Merkl](https://merkl.xyz/).

## Reward Calculation and Distribution

Snapshots will be taken at regular intervals of user positions, and the following methodology applied to calculate the weight of each eligible user's rewards:

```
timeToExpiry = if(endDate > block.timestamp) {endDate - block.timestamp} else {0}

weight = borrowed * sqrt(timeToExpiry)
```

<figure><img src="/files/SJSz94ZUb7yCELaSpnX0" alt=""><figcaption></figcaption></figure>