Context
$MORPHO rewards are distributed to users following the Ages and epochs systems introduced five months ago. For the third Age, the rewards would be distributed across Morpho-Compound and Morpho-Aave markets with a gauges mechanism. We propose here a total distribution for this Age, which starts on December 29, 2022.
Proposal
During Age 1, five million tokens have been distributed (0,5% of total supply), while ten million tokens are being distributed during Age 2 (1% of total supply). Through this time, the volume supplied on the protocol has grown from $0 to more than $300M, allowing more and more users to enjoy improved rates thanks to P2P matching. This rapid growth has continued and even strengthened over the past month, despite the difficulties faced by the crypto ecosystem.
For Age 3 (29/12/22 to 07/04/2023), we propose to distribute 10M of $MORPHO tokens (1% of total supply), with a constant distribution across all three epochs. The allotment between Morpho-Compound and Morpho-Aave would follow from gauges votes (if the coming governance vote passes).
This rewards setting should continue to catalyze the growth of the protocol without its use becoming dependent on rewards, but always on the better rates that users experience thanks to Morpho.
Next Steps
After discussions with the community, we will push a vote on snapshot.
