Unveiling the Lumerin-Morpheus Staking Model and Fundamentals

An update on the Lumerin staking distribution system

Dear Lumerians,

On June 11, we introduced the Lumerin staking program. This initiative will serve as Lumerin’s mechanism for rewarding users for participating in the buildout of the Morpheus Network. For more information about the partnership, please visit this article.

Now, we are excited to bring you important updates.

We have completed the staking model design, and are preparing to launch in Q3 2024.

Here are the details on how the Lumerin-Morpheus staking model will work.

Lumerin Staking: Definitions

As a development partner, Lumerin contributes code and development resources to building the Morpheus Network Node on a regular basis.

When users stake LMR, they will be adding to these efforts, helping to build a private, on-chain, decentralized AI system.

In exchange for their contributions, stakers will receive MOR tokens. These tokens are the native currency of the Morpheus Network and enable access to the Morpheus dApp.

💡 The Lumerin staking model is designed to ensure a fair distribution of MOR tokens to all stakers. It will also reward loyal participants by offering significant incentives to those who stake for longer periods.

The Lumerin staking pool will launch a test phase with an initial total distribution of 1,000 MOR paid out proportionally to stakers with weighted multipliers over the course of a year. Additional pools will be added in the future — stay tuned for updates!

The final amount each user will receive is determined by the weighted multiplier: a reward rate boost determined by the lock period duration.

This ensures that all users receive their proportional share of the total MOR rewards while also rewarding long-term commitment and loyalty.

Weighted Multipliers: Examples

Let’s explain the impact of the different lock period options and their respective weighted multipliers through some practical examples.

In this hypothetical scenario, there are three different Lumerin stakers:

• Alice stakes 1,000 LMR for 1 month (1.15x weighted multiplier). This means she will be allocated 1,150 weighted allocations (1,000 x 1.15).
• Bob stakes 500 LMR for 1 month (1.15x weighted multiplier). This means he will be allocated 575 weighted allocations (500 x 1.15).
• Carol stakes 1,000 LMR for 1 year (1.5x weighted multiplier). This means she will be allocated 1,500 weighted allocations (1,000 x 1.5).

For calculating the amount of MOR they will receive individually, we must divide each user’s weighted allocations by the total amount of weighted allocations combined. Then, multiply the result for the total amount of MOR available for distribution.

In this example, Alice’s weighted allocations (1,150), added to Bob’s (575) and Carol’s (1500) add up to a total of 3,225 weighted allocations.

To illustrate this example, assuming a daily distribution of 100 MOR, let’s calculate each user’s MOR allocation:

• Alice: 1,150 ÷ 3,225 = 0.357 x 100 = 35.7 MOR per day.
• Bob: 575 ÷ 3,225 = 0.178 x 100 = 17.8 MOR per day.
• Carol: 1,500 ÷ 3,225 = 0.465 x 100 = 46.5 MOR per day.

But what happens when there are changes in the staking distribution? Let’s assume Simon now deposits 2,000 LMR for six months (1.35x weighted multiplier). Simon now will be allocated 2,700 weighted allocations.

The total amount of weighted allocations is now 5,925 (Alice’s 1,150; Bob’s 575; Carol’s 1,500 and Simon’s 2,700).

• Alice: 1,150 ÷ 5,925 = 0.194 x 100 = 19.4 MOR per day.
• Bob: 575 ÷ 5,925 = 0.097 x 100 = 9.7 MOR per day.
• Carol: 1,500 ÷ 5,925 = 0.253 x 100 = 25.3 MOR per day.
• Simon: 2,700 ÷ 5,925 = 0.455 x 100 = 45.5 MOR per day.

Essentially, the final equation for calculating each staker allocation is:

[Reward] = [User’s weighted allocations] ÷ [Total weighted allocations] x [Daily total MOR rewards]

Important notes about weighted allocations:

• Once a staking deposit is initiated, it cannot be altered.
• In case users want to add more tokens to their staked amount, they can do so through a new deposit. Each staking operation is processed on its own. One wallet address can have multiple staking deposits simultaneously, each with its own timeline. Users can’t add tokens to an already existing staking deposit.
• When the lock period expires, users will be able to unstake their funds. If they decide to leave them staked, they will keep receiving rewards at the original rate.
• Users won’t be able to unstake their locked funds for the entire duration of the lock period. However, they can withdraw their MOR rewards at any time.

Lumerin Staking: Final Comments

Decentralization is one of Lumerin’s fundamental values. We believe every member of the Lumerin community should have access to staking and be able to participate in the project’s initiatives.

Thus, this time-weighted approach to MOR distribution is the best way to keep Lumerin staking fair for everyone while simultaneously rewarding the most loyal users and incentivizing long-term staking. This further promotes Lumerin’s efforts and contributions to the Morpheus node development.

We are confident that when Lumerin staking launches in Q3 2024, this model will fit well within the community’s interests and the network’s needs.

Finally, we want to thank you for participating in this ambitious project.

We have achieved significant milestones in the last few months, with the Morpheus testnet release as the main highlight. Our community has always been the main force behind Lumerin’s progress. We believe this staking mechanism is an excellent way to reward your loyalty, participation and support.

Stay tuned for the staking program launch date announcement, and let’s continue to build the future of decentralized data routing and Web3 infrastructure together.

If you have any questions, get in touch in our Telegram group.

Warm regards,

The Lumerin Team

Do you still have questions? Make sure to join our Telegram channel and ask us! We are always available for our community.