# MIP 97 - Optimistic Rewards Rate Adjustment Framework

**URL:** <https://forum.morpho.org/t/mip-97-optimistic-rewards-rate-adjustment-framework/1536>\
**Category:** Rewards\
**Created:** [February 18, 2025, 3:43pm UTC](https://forum.morpho.org/t/mip-97-optimistic-rewards-rate-adjustment-framework/1536 "2025-02-18T15:43:00Z")\
**Posts on this 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:** [February 18, 2025, 3:43pm UTC](https://forum.morpho.org/t/mip-97-optimistic-rewards-rate-adjustment-framework/1536/1 "2025-02-18T15:43:00Z")

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## Motivation

The Morpho DAO is in the process of optimizing MORPHO reward rates, and has recently completed a series of rates reductions. Requiring a governance proposal for every change creates substantial work for delegates, and imposes a minimum duration on changes. Based on the suggestions from delegates, this is a proposal for an optimistic framework to handle future rewards rate changes.

## Proposal

Authorize the Morpho Association to submit rewards rate adjustments without a governance vote on Ethereum, Base, and future networks where MORPHO rewards are allocated by the DAO and distributed under the [scalable rewards model](https://forum.morpho.org/t/mip65-new-scalable-rewards-model/617), subject to the following restrictions:

- maximum of ±30% change in global rewards rates per week
- maximum of ±30% change in per asset rates per week (for example, stablecoins currently receive a higher MORPHO reward rate than other assets)
- all changes to be posted on the forum at least 24 hours in advance of implementation
- reward rate cannot increase higher than 50% of the current level for any asset without a vote

## Benefits

1. Allow for more frequent adjustments
2. Reduce number of governance votes
3. Encourage smaller optimizations once rewards rate is close to target (that might not make sense to do in the current framework given the time between a change being proposed and taking effect)

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_[View the full topic](https://forum.morpho.org/t/mip-97-optimistic-rewards-rate-adjustment-framework/1536)._
