Summary
On August 26, 2024, the Morpho community was invited to discuss the transferability of the MORPHO token. As discussed in the original post, the Morpho Association now consolidates the feedback and suggestions for the community’s review and further consideration.
Recap of Discussion
Morpho community members provided feedback and suggestions on a variety of issues related to transferability.
- The majority of community members who commented believed it is an appropriate time to make the MORPHO token transferable. (See Comments from @Fluxty, @eth2staker, @Steakhouse, @antonttc, @Leuts, and @txns)
- Several other members believed it was an appropriate time for transferability but also suggested other items the DAO pursue before transferability:
- The Morpho DAO should provide more detailed information about the MORPHO token, such as vesting schedules and circulating supply. (See Comment from @prevert).
- The Morpho DAO should confirm a strategy to ensure adequate liquidity for MORPHO on centralized exchanges (CEXs) and decentralized exchanges (DEXs). (See Comments from @just_use_morpho, @Super_Chameau, and @IJ0x).
- The Morpho DAO should explore a voluntary locking mechanism for MORPHO. (See Comments from @Hubert and @cryptojoe).
- There were also a number of members who provided suggestions on other areas the DAO could pursue after transferability:
- The Morpho DAO should explore a grant program to incentivize further contributions to the Morpho network. (See Comments from @just_use_morpho, @antonttc, and @osaat).
- The community should discuss ways to create additional utility for the MORPHO token. (See Comments from @Leuts, @valentin and @hubert).
Based on existing discussions and suggestions, the community appears aligned that it is an appropriate time to make the MORPHO token transferable.
Information About the MORPHO Token
Based on the suggestion for more information about the MORPHO Token, we have consolidated previously public information (including onchain) about MORPHO below for ease of reference.
MORPHO is the Morpho Protocol’s governance token. The Morpho DAO—made up of MORPHO holders and delegators—governs the Morpho Protocol. The governance system uses a weighted voting system in which the number of MORPHO tokens held determines voting power.
MORPHO holders can vote on changes or improvements to the protocol, including:
- Future initiatives to grow the Morpho protocol;
- Deployment and ownership of Morpho smart contracts;
- Turning on/off the fee switch built into the Morpho smart contracts;
- Govern the DAO Treasury.
General Information
Ticker: MORPHO
Contract Address: 0x9994E35Db50125E0DF82e4c2dde62496CE330999
Deployed: 24 June 2022
Maximum Supply: 1,000,000,000 MORPHO
Token Distribution & Vesting
The overall distribution of MORPHO tokens, including vested and unvested allocations, as of September 23, 2024.
Morpho DAO
34.5% of MORPHO tokens are owned and controlled by the Morpho DAO. Holders of the MORPHO token can vote on how these tokens are used.
Users
5.4% of MORPHO tokens have been distributed from the Morpho DAO to users of the Morpho Protocol. MORPHO tokens will continue to be distributed under the scalable rewards model until the Morpho DAO votes to amend it.
Morpho Association
6.7% of MORPHO tokens are allocated to the Morpho Association for ecosystem development. This allocation can be used to fund partnerships, contributors, and any other initiatives that help grow the Morpho Protocol and advance Morpho’s network.
Reserve for Contributors
5.8% of MORPHO tokens are reserved for contributors to the Morpho Protocol for their role in the development and growth of the network. This reserve includes unallocated tokens set aside by the Morpho DAO for future contributors to the Morpho Protocol —such as employees of Morpho Labs, service providers, contractors, and research institutes.
Strategic Partners
27.5% of MORPHO tokens have been allocated to Strategic Partners tokens in exchange for providing support—monetary or otherwise—to the Morpho Protocol. These MORPHO tokens are distributed according to three vesting schedules based on the time these Strategic Partners joined the Morpho ecosystem.
Cohort 1: 4.0% allocated over a 3 year vest, with a 6 month lockup from when the MORPHO token contract was deployed on 24 June 2022.
Cohort 2: 16.8% originally allocated over a 3 year vest, with a 6 month lockup from 24 June 2022. However, these strategic partners have agreed to relock to a 6 month linear vesting, following a 6 month lockup from the earliest of any future transferability date or 3 October 2024. This means 100% is vested by 3 October 2025 at the latest.
Cohort 3: 6.7% allocated over 2 year linear vest, following a 1 year lockup from the earliest of any future transferability date or 17 May 2025. This means 100% is vested by 17 May 2028 at the latest.
Founders
15.2% of MORPHO tokens have been allocated to Morpho’s founders. The tokens were originally allocated over 3 year vest, with a 1 year lockup from when the token was deployed on 24 June 2022. However, all co-founders have agreed to relock to an additional 2 year linear vest, following a 1 year lockup from the earliest of any future transferability date or May 17th 2025. This means 100% is vested by 17 May 2028 at the latest.
Early Contributors
4.9% of MORPHO tokens have been allocated to early contributors, including Morpho Labs’ contributors, independent researchers, and advisors, in exchange for contributions to the Morpho Protocol. These tokens have been subject to either:
- A 3-year vesting schedule with a 6-month lockup, or
- A 4-year vesting schedule with a 4-month lockup.