After registering, you will automatically be placed into one of three Rewards Levels based on your current gamerscore. Your level will determine the rewards you are eligible for during each Challenge. The more you play, the higher you can advance, and the bigger the pay-out.
Level 1 (0 – 4,999 annual Gamerscore): You are developing your skills and gaining experience. Take some time to get used to the program and learn your way around. The Challenges will typically be easier and the rewards smaller.
Level 2 (5,000 – 9,999 annual Gamerscore): We are going to turn up the heat a bit. You have proved that you know how to play and are willing to put in the gaming time to reap the benefits. The Challenges will get a bit more difficult. Never fear, the reward value goes up as well.
Level 3 (over 10,000 annual Gamerscore): This is an arena filled with the who's who of gaming. We don't want to claim that Level 3 is an exclusive club, but if you find yourself winning Challenges here, you've obviously pulled out the big guns, so enjoy while it lasts.
Xbox Rewards is not a hall of fame, and there are no honorary life members. In order to maintain your Rewards Level, you have to continue to play on top. Rewards Levels are based on how many Gamerscore points you gain each calendar year.