# Exchange Rate update & Rebalancing
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Last updated on Feb-13-2023.
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***Derp Birds is about fun above all else.*** We have multiple character collections, and everything we build provides a gamified experience through achievements, earning XP, leveling up, leaderboards, and public profiles for competing with other community members, etc.
### Exchange Rate Update
A part of the Derp ecosystem is the [DERP Exchange](/derp-birds/derp-token/derp-exchange.md) where players can swap earned XP for our utility token, $DERP. From the launch of the exchange, the exchange rate was 10 XP to 1 $DERP. **With this update, we'll be changing the exchange rate to 100:1.**
### Balance Changes
Along with this update, we'll also be making some changes to how much XP different characters in the collections earn from staking. We want some of the NFTs in the collections to feel truly powerful and special. In Season 2, we introduced staking. Today, staking rewards for each NFT are based on the rarity of each trait, that is to say, each trait grants a set amount of XP based on how rare it is.
With this update, we'll be adjusting the underlying formula that determines the XP for each trait but also making many more changes that give us finer control over creating a more fun staking system.
Here are some highlights:
* All Traits will be assigned a rarity(common, mystical, etc) and those rarity tiers will add an XP multiplier to the trait(e.g., `Buff` traits are mystical-level traits and as such, are given a 2x multiplier for their XP earned per epoch)
* This change also helps us prepare for new S3 traits that will be craftable
* The rarity tier(common, mystical, etc.) of a Derp NFT will also give the grant the NFT a flat XP bonus per epoch(e.g., all Mystical birds earn an extra 500 XP per epoch)
* The flat XP bonuses for Perfect Specimens will all be increased
* The 1/1 Derp Bird, the Ghost, will be given its own rarity tier, called `Unique` which allows for even greater control of staking rewards
* PRED's XP will get a boost where the XP from the eggs, perfect eggs, and shards traded to create the PRED will get added to the PRED's XP
* PREDs will be given a flat XP bonus based on their PRED Rank(e.g., R2 PREDs will earn an extra 50 XP per epoch)
* (Additional staking changes for PRED will be implemented during the [PRED V2](/derp-birds/more/roadmaps/season-3/pred-v2.md)update)
* The XP per epoch caps for Derplings and Derp Apes will be adjusted upwards allowing them to earn more, especially the rarer NFTs in each collection
Once these changes are in place we will update this page with the exact numbers of the changes.
We think these balance adjustments will add to the overall fun of collecting NFTs from different collections and will allow some of the NFTs to stand out more across the project. We do not expect this to be the last balance update we make. As always, we're paying attention to how things unfold and adjusting as we go.
### App Updates
The app will be updated to reflect all of these changes. Users will be able to view the rarity and rewards for each trait from the character view side pane.
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