diff --git a/x/nodes/keeper/params.go b/x/nodes/keeper/params.go
index 7dbe25b44..d6b3e80c2 100644
--- a/x/nodes/keeper/params.go
+++ b/x/nodes/keeper/params.go
@@ -164,6 +164,25 @@ func (k Keeper) splitRewards(
 	return
 }
 
+// Split feeCollector's cut into DAO and Propower
+func (k Keeper) splitFeesCollected(
+	ctx sdk.Ctx,
+	feesCollected sdk.BigInt,
+) (daoCut, proposerCut sdk.BigInt) {
+	daoAllocation := sdk.NewDec(k.DAOAllocation(ctx))
+	proposerAllocation := sdk.NewDec(k.ProposerAllocation(ctx))
+
+	// get the new percentages of `dao / (dao + proposer)`
+	daoAllocation = daoAllocation.Quo(daoAllocation.Add(proposerAllocation))
+
+	// dao cut calculation truncates int ex: 1.99uPOKT = 1uPOKT
+	daoCut = feesCollected.ToDec().Mul(daoAllocation).TruncateInt()
+
+	// proposer is whatever is left
+	proposerCut = feesCollected.Sub(daoCut)
+	return
+}
+
 // DAOAllocation - Retrieve DAO allocation
 func (k Keeper) DAOAllocation(ctx sdk.Ctx) (res int64) {
 	k.Paramstore.Get(ctx, types.KeyDAOAllocation, &res)
diff --git a/x/nodes/keeper/reward.go b/x/nodes/keeper/reward.go
index 98b4bb4ed..78c1b880b 100644
--- a/x/nodes/keeper/reward.go
+++ b/x/nodes/keeper/reward.go
@@ -184,38 +184,62 @@ func (k Keeper) GetChainSpecificMultiplier(ctx sdk.Ctx, chain string) sdk.BigInt
 func (k Keeper) blockReward(ctx sdk.Ctx, previousProposer sdk.Address) {
 	feesCollector := k.getFeePool(ctx)
 	feesCollected := feesCollector.GetCoins().AmountOf(sdk.DefaultStakeDenom)
-	// check for zero fees
 	if feesCollected.IsZero() {
 		return
 	}
-	// get the dao and proposer % ex DAO .1 or 10% Proposer .01 or 1%
-	daoAllocation := sdk.NewDec(k.DAOAllocation(ctx))
-	proposerAllocation := sdk.NewDec(k.ProposerAllocation(ctx))
-	daoAndProposerAllocation := daoAllocation.Add(proposerAllocation)
-	// get the new percentages based on the total. This is needed because the node (relayer) cut has already been allocated
-	daoAllocation = daoAllocation.Quo(daoAndProposerAllocation)
-	// dao cut calculation truncates int ex: 1.99uPOKT = 1uPOKT
-	daoCut := feesCollected.ToDec().Mul(daoAllocation).TruncateInt()
-	// proposer is whatever is left
-	proposerCut := feesCollected.Sub(daoCut)
+
+	daoCut, proposerCut := k.splitFeesCollected(ctx, feesCollected)
+
 	// send to the two parties
 	feeAddr := feesCollector.GetAddress()
 	err := k.AccountKeeper.SendCoinsFromAccountToModule(ctx, feeAddr, govTypes.DAOAccountName, sdk.NewCoins(sdk.NewCoin(sdk.DefaultStakeDenom, daoCut)))
 	if err != nil {
-		ctx.Logger().Error(fmt.Sprintf("unable to send %s cut of block reward to the dao: %s, at height %d", daoCut.String(), err.Error(), ctx.BlockHeight()))
+		ctx.Logger().Error("unable to send a DAO cut of block reward",
+			"height", ctx.BlockHeight(),
+			"cut", daoCut,
+			"err", err.Error(),
+		)
 	}
+
 	if k.Cdc.IsAfterNonCustodialUpgrade(ctx.BlockHeight()) {
-		outputAddress, found := k.GetValidatorOutputAddress(ctx, previousProposer)
+		validator, found := k.GetValidator(ctx, previousProposer)
 		if !found {
-			ctx.Logger().Error(fmt.Sprintf("unable to send %s cut of block reward to the proposer: %s, with error %s, at height %d", proposerCut.String(), previousProposer, types.ErrNoValidatorForAddress(types.ModuleName), ctx.BlockHeight()))
+			ctx.Logger().Error("unable to find a validator to send a block reward to",
+				"height", ctx.BlockHeight(),
+				"addr", previousProposer,
+			)
 			return
 		}
-		err = k.AccountKeeper.SendCoins(ctx, feeAddr, outputAddress, sdk.NewCoins(sdk.NewCoin(sdk.DefaultStakeDenom, proposerCut)))
-		if err != nil {
-			ctx.Logger().Error(fmt.Sprintf("unable to send %s cut of block reward to the proposer: %s, with error %s, at height %d", proposerCut.String(), previousProposer, err.Error(), ctx.BlockHeight()))
+
+		if !k.Cdc.IsAfterDelegatorUpgrade(ctx.BlockHeight()) {
+			validator.Delegators = nil
 		}
+
+		SplitNodeRewards(
+			proposerCut,
+			k.GetOutputAddressFromValidator(validator),
+			validator.Delegators,
+			func(recipient sdk.Address, share sdk.BigInt) {
+				err = k.AccountKeeper.SendCoins(
+					ctx,
+					feeAddr,
+					recipient,
+					sdk.NewCoins(sdk.NewCoin(sdk.DefaultStakeDenom, share)),
+				)
+				if err != nil {
+					ctx.Logger().Error("unable to send a cut of block reward",
+						"height", ctx.BlockHeight(),
+						"cut", share,
+						"addr", recipient,
+						"err", err.Error(),
+					)
+				}
+			},
+		)
+
 		return
 	}
+
 	err = k.AccountKeeper.SendCoins(ctx, feeAddr, previousProposer, sdk.NewCoins(sdk.NewCoin(sdk.DefaultStakeDenom, proposerCut)))
 	if err != nil {
 		ctx.Logger().Error(fmt.Sprintf("unable to send %s cut of block reward to the proposer: %s, with error %s, at height %d", proposerCut.String(), previousProposer, err.Error(), ctx.BlockHeight()))
diff --git a/x/nodes/keeper/reward_test.go b/x/nodes/keeper/reward_test.go
index dd616a394..41eb12cf3 100644
--- a/x/nodes/keeper/reward_test.go
+++ b/x/nodes/keeper/reward_test.go
@@ -142,6 +142,13 @@ func TestKeeper_rewardFromFees(t *testing.T) {
 	fp = keeper.getFeePool(context)
 	keeper.SetValidator(context, stakedValidator)
 	assert.Equal(t, fees, fp.GetCoins())
+
+	_, proposerCut := keeper.splitFeesCollected(context, amount)
+
+	totalSupplyPrev := keeper.AccountKeeper.GetSupply(context).
+		GetTotal().
+		AmountOf("upokt")
+
 	tests := []struct {
 		name   string
 		fields fields
@@ -159,11 +166,14 @@ func TestKeeper_rewardFromFees(t *testing.T) {
 			k := tt.fields.keeper
 			ctx := tt.args.ctx
 			k.blockReward(tt.args.ctx, tt.args.previousProposer)
-			acc := k.GetAccount(ctx, tt.args.Output)
-			assert.False(t, acc.Coins.IsZero())
-			assert.True(t, acc.Coins.IsEqual(sdk.NewCoins(sdk.NewCoin("upokt", sdk.NewInt(910)))))
-			acc = k.GetAccount(ctx, tt.args.previousProposer)
-			assert.True(t, acc.Coins.IsZero())
+
+			verifyAccountBalance(t, k, ctx, tt.args.Output, proposerCut)
+			verifyAccountBalance(t, k, ctx, tt.args.previousProposer, sdk.ZeroInt())
+
+			totalSupply := k.AccountKeeper.GetSupply(ctx).
+				GetTotal().
+				AmountOf("upokt")
+			assert.True(t, totalSupply.Equal(totalSupplyPrev))
 		})
 	}
 }