Vote to Enable Transferability of the MORPHO Token

Governance
1

Proposal

I propose that the Morpho DAO make the MORPHO token transferable and ensure that MORPHO rewards distributed on Base are claimable at a similar time.

Steps to Enable Transferability

Based on the above, I propose the Morpho DAO proceed with enabling transferability by following these steps:

  1. Prepare for transferability on Base:

    a. Deploy the new version of the MORPHO token on Base using this factory: https://basescan.org/address/0xF10122D428B4bc8A9d050D06a2037259b4c4B83B#code
    See this discussion for the difference between new and legacy versions of the MORPHO token: https://snapshot.org/#/morpho.eth/proposal/0x53c5f01dac396b97650f37fccfa0910457b27a1fc06c5ec5d54ee0e6e5408180
    b. Whitelist the wrapper contract to transfer the legacy nontransferable MORPHO token.
    c. Wrap 2,500,000 MORPHO tokens and bridge them to the DAO multi-sig on Base.
    d. Prepare payload to submit the root to the universal rewards distributor (URD) and transfer new wrapped MORPHO tokens from the DAO multi-sig on Base to the URD.

  2. Enable transferability:

    a. Set the transfer and transferFrom public function as true on Ethereum and remove the role 0.

  3. Make MORPHO claimable on Base:

    a. Execute payload to submit root to the URD and transfer new wrapped MORPHO tokens from the DAO multi-sig on Base to the URD, allowing users to claim MORPHO rewards.

Next Steps

If the MORPHO community remains aligned on transferability and the steps above, I will push a vote on Snapshot.

11 Likes
2

Thanks for the detailed post. All the technical steps outlined above are feasible. The Morpho Association is prepared to support the community’s decision.

2 Likes
3

I fully endorse the proposal to enable transferability of the MORPHO token, recognizing its potential to foster broader community engagement, increase liquidity, and amplify Morpho’s market position in decentralized finance. This is a strategic step toward making the MORPHO token a more accessible and integral part of the DeFi ecosystem, potentially enhancing network resilience and participant retention.

Moreover, I propose establishing a foundational reward mechanism for early users as a complementary initiative. This would entail issuing a base reward to all token holders who interact with Morpho by a set date. The purpose of this initiative would be to:

1. Boost Decentralization: By offering base rewards to early users, Morpho could further incentivize organic distribution of tokens among engaged participants, strengthening community-based governance.
2. Enhance User Retention and Loyalty: A reward system acknowledges the contributions and commitments of users, fostering long-term loyalty and reinforcing Morpho’s user-first values.
3. Align with Morpho’s Vision: Such a reward initiative aligns with Morpho’s decentralization goals by empowering a larger portion of the community to participate in governance, increasing decision-making diversity.

This combined approach of token transferability with a user reward program not only drives immediate engagement but also aligns with the long-term sustainability and decentralization goals of the Morpho protocol.

4

Thank you very much for the proposal. We fully support it, as it is based on an already approved and sensible proposal, and we see no issues with the proposed steps.

Regarding @vers’s proposal, which we think it’s relevant to the main point of this proposal, we believe it should be treated as a separate topic from this one.

1 Like
5

Agree with this decision. This will make morpho easier to decentralize.

6

will this plan also include letting DEX’s or CEX’s know?

7

I endorse this as it is part of the long term goals of Morpho DAO. Also the incentive stated is a good one for members of the community.

8

Following positive community feedback I’ve initiated a snapshot vote for this proposal
https://snapshot.box/#/s:morpho.eth/proposal/0x0657c83ada33fe85478672483c81dd1c11282b633031c0ff60f5a06417b5ef52

2 Likes
9

Presumably either the DAO or the Association would like to seed liquidity for the token once it is transferable. Is the expectation that this would happen if a separate vote passes to do so?