Reward distribution

The reward distribution mechanism in the Builders protocol ensures that MOR tokens are fairly allocated among builder pools and their participants based on their contributions, with internal logic designed for efficiency and scalability.

Overview

MOR rewards are not distributed automatically based on a predefined curve or emission schedule. Instead, rewards are manually supplied by the Morpheus multisig to the BuildersTreasury contract. Once deposited and stake, claim or withdraw transaction executed after the deposit, the system calculates and distributes rewards proportionally across all builder pools based on each pool’s virtual stake. Within each pool, the rewards are further divided among users.

Such an approach ensures that only the tokens actually available are distributed. The more frequently the treasury is replenished, the fairer the distribution will be among the subnets.

Reward accumulation

When MOR tokens are deposited into the BuildersTreasury, the contract holds these tokens until a builder (admin of a pool) manually triggers a reward claim for their pool via the claim function. The claim function can only be called after a specified claimLockEnd time and only by the admin of the respective pool.

Reward calculation formula

Pool rewards are calculated lazily — that is, only when a staker interacts with the contract (e.g., stake, withdraw, or claim), rather than updating every user on each pool. The calculation is performed using the following logic:

uint256 poolReward = pendingRewards + virtualStake * (totalRewardCoefficient - pooluserRewardCoefficient);

• pendingRewards - rewards that were calculated after the stake or withdrawal — that is, after the pool’s share was modified.

• virtualStake - the pool’s current stake after applying multipliers.

• totalRewardCoefficient - the current accumulated MOR per unit of virtual stake across the all pools.

• pooluserRewardCoefficient - the coefficient stored at the time of the last interaction in the pool.

The totalRewardCoefficient is updated globally when new rewards are distributed. It is calculated as:

uint256 totalRewardCoefficient += distributedRewards / totalVirtualStake;

• distributedRewards - is the amount of MOR tokens allocated to the pool during distribution.

• totalVirtualStake - is the sum of all users’ virtual stake (after applying lock/referral multipliers) at the time of distribution.

This model allows each user’s reward to be efficiently and fairly computed based on the delta in the coefficient since their last update.

Virtual stake and multipliers

Each user’s deposit is enhanced with a multiplier derived from their lock period (configured per pool).

The total virtual stake of a pool is the sum of all users’ virtual stakes and determines the share of rewards that pool receives.