MRC 41: MOR Staking For Builders

The Time & Dilution Based Power Factor Method For Calculating Proportionality of Emissions

https://discord.com/channels/1151741790408429580/1251995756332843189

Status:

Pending

Authors / Discord Name:

Anon 866, David Johnston (Smart Agents), Anton (antonb), Anon (lachsbagel), Christopher (storm.father), Jon (jonisjon), Maxwell (scott_b_), Jeff (Jabo38), Luke (lukestokes)

Diagrams

Diagram 1 Builders Register Address and Staking Duration

Diagram1MORStakingBuilders

Diagram 2 End Users Stake MOR Toward Projects

MORBuilderStakingDiagram2

Diagram 3 MOR Emissions Go To Builders Based on MOR Staking times Power Factor

MOREmissionsDiagram3

Category:

MRI #1 Smart Contracts Reference Implementation

Rationale: Time Equals Alignment

To implement economic alignment of Builders, it is necessary to implement a functionality where users can specify for what period they want to Stake their MOR tokens. It is necessary to implement a functionality where users can specify for what period they want to Stake the MOR tokens, in return the user will receive an increased reputational signal to their project.

Dependencies:

None.

New Weights Requested:

30,000 Weights

Existing Weights:

None.

Deliverables: Smart Contract Updates

The Distribution Smart Contract specifically with have a the two functions added.

  1. MOR Staking function (delay MOR claims during certain UTCsecond heights).

  2. Power Factor Added To MOR Reward Calculation.

Qualification:

Same open source developers that developed the Morpheus Smart Contracts thus far.

Analysis & Models:

  • Emissions Curve Calculator 7.21.2024 https://docs.google.com/spreadsheets/d/1xTY7keBdPo2Nzm35Wdmu7ngP3NVIDebR/edit?usp=share_link&ouid=108805586783812761772&rtpof=true&sd=true

  • MOR Power Table https://docs.google.com/spreadsheets/d/1uEjozAcnEt-IWaSsu_BbYPRMUCkbwjwv/edit?usp=share_link&ouid=108805586783812761772&rtpof=true&sd=true

Proportionality Equestion For MOR Staking

ProportionalityEquationMORStaking

Emissions Earned By Realative Power

Emission Earned Chart 2

Example Chart

ExampleMORPowerFactor Presumes a July 25th 2024 start date

Applying the Power Factor

A power factor can be applied at deposit, if the user specifies MOR Staking period. Or with a separate function on the smart contract - StakingClaim(). The MOR Staking period is specified in seconds, it can be any interval. When a power factor is applied, the user's "protion" of the stETH pool increases, depending on the power factor.

Restrictions

To implement such functionality, we need to carry a number of constraints and understand the important points:

  • MOR Staking period can be set by the user or administrator (for non-automatic groups) at any time;

  • MOR Staking period cannot be decreased;

  • MOR Staking period can be increased. At the time of the transaction, the new multiplier will be applied.

  • Until the end of MOR Staking period, the user will not be able to withdraw their MOR rewards.

MOR Rewards for Builders in Plain English

Example For MOR20 & MRC21 Projects

    1. Builder projects add their address to the decentralized registry (permissionless back end).

    1. Projects listed (community run front ends) by decision of the Front end maintainer.

    1. Users or the project itself can Stake existing MOR toward the project’s address, for 1 year for example.

    1. The Project picks the length of its Staking period of its MOR rewards (future emissions) setting its Power Factor.

    1. Rewards equal the weight of the project calculated by number of MOR Staked times the Power Factor.

    1. Builders get rewards out of the 24% of emissions are paid out in proportion to the total weight.

    1. Builders get rewards up to the amount of MOR Staked to their project over a 1 year period.

Outcomes of This Design:

  • Open competition by Builders to get as many MOR Stakers toward their project as they can.

  • Open competition by Builders to Stake their future MOR emissions over time (get a higher power factor).

  • Leaves it up to Builders how to incentivize their users to Stake MOR (Venice Pro accounts MOR Stakers for example).

  • Permissionless. Anyone can register but Front End Maintainers decide what to highlight.

  • Self Stakers will get little rewards unless they Stake up their MOR for years, in which case its also for Morpheus.

The Builder Receives MOR as a Payment or Staking Example

  • A. 0.35% Fees from MOR payments to Builders goes to the Morpheus protocol owned liquidity.

  • B. 0.35% Fees on all Staked MOR withdrawn from a project goes to the Morpheus protocol owned liquidity.

MOR Staking in Relation to Builder Rewards - Rank & Reputation in "Morpheus Agent Router"

Projects are listed on the decentralized registry with their MOR20 or MRC21 addresses.

  • A. Projects Staking of MOR rewards into the future.

  • B. Staking time length results in Power Factor applied to the Staked MOR.

  • C. Weight from MOR Stake times Power equals Total Rank Weight or reputation in the system.

  • D. Total Rank Weight compared to all others determines rank in the Morpheus Agent Router (Corrdinator Agent / Front Ends).

Changes to Smart Contracts

The Distribution contract and related interfaces will change. Updates to the smart contract on the network will need to be made.

Timelines

10 weeks from June 21st 2024.

Implementation Version Logical as of March 17th 2025.

Calculation of Builder Rewards V1 & V2

(Total Amount staked in the builder’s staked at time of snapshot/ cumulative amount of mor emitted to builder’s pool in distribution contract since inception of Distribution contract) multiplied by total issuance for the period you’re looking for

Denominator chosen to roughly calculate 75% and decline in proportion to aggregate issuance and amount staked

Thought process was to revisit issuance and curve after 60-90 days and gauge. - Review every 30 days - Structure contract for automation and daily accrual with 7 day cool down for withdrawal from the contract.

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