MIP 80 - Approve Review of Contributor Grants and Establish Formal Process

Governance
1

Approve Review of Contributor Grants and Establish Formal Process

Context

In 2022, the Morpho DAO voted for the allocation of 7.9% of the MORPHO token supply to be distributed to contributors to the protocol (eg employees of Morpho Labs, service providers, contractors, research institutes). The Morpho Association is presenting to the Morpho DAO the allocation of MORPHO in 2022-2023 for final review and distribution by the Morpho DAO.

2022-2023 Review

The Morpho Association presents the following token grants allocated between January 1, 2022, and December 31, 2023.

During this period, contributors worked on the successful deployment of: Morpho Optimizers (including Morpho-Compound, Morpho-AaveV2, Morpho-AaveV3)

Contributors also worked on the development of the Morpho Front-End and Morpho Stack modules (SDKs, APIs, etc.).

The overall distributions for 2022 and 2023 are presented below:

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Next Steps

After the community has had time to discuss, the Morpho Association will submit the vote on Snapshot.

The Morpho DAO will vote to:

  • Approve the 2022-2023 distributions.
  • Moving forward, the Morpho Association will present yearly allocations to the Morpho DAO for final approval and distribution to contributors
3 Likes
2

Thank you for the proposal.

Could you please clarify which category of the token distribution this token grant belongs to?
We believe this grant could be from “Early Contributors” or “Reserve for Contributors,” but neither of them accounts for 7.9% of the share.

Although this isn’t an issue that would lead us to vote against the proposal, we believe we should understand it properly before voting.

3

This token grant belongs to the Reserve for Contributors:

  • The initial balance of that Reserve was 7.9% as per this governance proposal.
  • The current request for approval is for a portion of tokens allocated and vested in 2022/2023, which amounts to 0.5%.
  • The balance shared on the chart for the Reserve for Contributors is 5.8%. Indeed, there is a delta of 1.6% (7.9% - 0.5% - 5.8% = 1.6%). This is because the token distribution computes allocations for 2024 onwards that have not yet been approved and vested. As mentioned in the post, the Morpho Association will present yearly allocations to the Morpho DAO for final approval and distribution.
4

These figures look all fine, I am just a bit wondering: why do we need a proposal to validate spending tokens that have already been spent? Looks like it was covered through the 2022 proposal, no?

5

Now this passed, it would be great if the Morpho Association could project a yearly allocation budget for 2025 and then submit to the DAO for approval and distribution this December '24.

This way, the community is carried along on the Association’s plan for next year and how they are looking to work with their 2025 budget. Although the entirety of these reserve funds have already been earmarked to be allocated to the Association, this would strengthen trust between the Association and the community.