Inviting the Morpho Community to Discuss Transferability

As a user, primarily of the Morpho Earn product, I support the move to make the MORPHO token transferrable, for many of the same reasons listed above.

To offer something unique to the conversation, I’ll speak from my own long-term holder perspective, where there are pros and cons to both enabling transferability now and later.

Enabling now benefits long term believers in the protocol by allowing them to purchase a stake in the Morpho network at early valuations. Additionally, I speculate that at some point in the future, yield farming strategies in DeFi will be bundled into ETPs, which will bring unbridled liquidity into the space. Morpho’s protocol design is well suited to this future, but only if the MORPHO token can be sold by ETPs for additional yield, as holding speculative tokens inside a yield farming strategy makes very little sense.

On the other hand, enabling transferability later benefits long term users of the protocol by allowing them to accumulate a greater share of the supply purely through using the protocol for a longer period of time. Additionally, there is an opportunity to create immense hype around the protocol and farming tokens if transferability were left disabled until the DeFi space achieves much higher valuations.

A potential downside of enabling later, however, is that Morpho may miss out on opportunities like the ETP scenario I described above, should transferability still be disabled when institutions begin developing those products.

Overall, it seems to me that, from both a holder and protocol perspective, enabling sooner is the safer and potentially more rewarding choice for everyone.

P.S. Just make sure that MORPHO rewards from the Uniform Rewards Program are claimable in the UI well before transferability is enabled!

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