# MIP 111 - Switch Morpho Rewards Stack to Merkl

**URL:** https://forum.morpho.org/t/mip-111-switch-morpho-rewards-stack-to-merkl/1879
**Category:** Governance
**Tags:** mip
**Created:** [July 18, 2025, 12:35pm UTC](https://forum.morpho.org/t/mip-111-switch-morpho-rewards-stack-to-merkl/1879 "2025-07-18T12:35:02Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![MorphoAssociation](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.morpho.org/morphoassociation/32/249_2.png) [@MorphoAssociation](https://forum.morpho.org/u/MorphoAssociation)
#### Post date: [July 18, 2025, 12:35pm UTC](https://forum.morpho.org/t/mip-111-switch-morpho-rewards-stack-to-merkl/1879/1 "2025-07-18T12:35:02Z")

</div>

The Morpho Association proposes switching to the [Merkl](https://merkl.xyz/) stack to handle rewards computation and claiming processes.

The reasons for this change are:

1. Merkl is deployed on most chains, while our current stack is not. This has become a limiting factor as Morpho expands to new chains.
2. Merkl enables users to claim rewards every 8 hours, compared to our current weekly claiming schedule.
3. Merkl has become the industry standard solution for reward campaigns, used by many Morpho ecosystem partners.
4. Switching to Merkl would free up resources that can be redirected toward building the best onchain loan infrastructure—Morpho’s core objective.

If approved, the existing fixed-rate rewards programs on Ethereum and Base would transition to Merkl using [variable rates](https://docs.merkl.xyz/merkl-mechanisms/distributions#variable-reward-rate-campaigns) instead. The first campaign would have the following specifications:

- 1-month fixed budget campaign
- Budget per loan asset:
  - On Ethereum:
    - USDC: 380,000 MORPHO
    - USDT: 50,000 MORPHO
    - WETH: 70,000 MORPHO

  - On Base:
    - USDC: 90,000 MORPHO
    - WETH: 30,000 MORPHO
    - EURC: 4,000 MORPHO

NB: The Optimistic Rewards Framework still holds (see [here](https://forum.morpho.org/t/optimistic-rewards-rates-adjustments/1585) and [here](https://forum.morpho.org/t/mip-109-optimistic-rewards-v1-1/1855) for more information). As a result the 1st campaign budget might change a little bit to approximate current rewards rates as much as possible, taking into account new [suggestions](https://forum.morpho.org/t/optimistic-rewards-rates-adjustments/1585/4) as well.