Morpho Governance

The purpose of this proposal is to define the framework for the distribution of rewards for Age 5 starting on May 22nd and ending on July 6th. We propose to: Distribute a total of 1.1 million $MORPHO; Focus rewards distribution on markets where peer-to-peer matching is activated; Start incentivizing the supply side of the WETH market on the AaveV3-ETH Optimizer. More information in the forum post below.

The Morpho Association proposes to set the Morpho Admin as the owner of the AaveV3 ETH Optimizer like other Morpho protocols. The Morpho Admin is a Safe without signers that is directly controlled by the Morpho DAO, but with a delay of 24 hours between submitting a transaction modifying the state of the protocol and its execution.

The Morpho association has deployed the Morpho AaveV3 ETH eMode Optimizer and now proposes that the Morpho DAO accept the smart contracts’ ownership. After acceptance of the ownership, the DAO could upgrade the protocol after a delay of 24 hours and trigger all governance functions. As for the previous versions, it proposes granting the Morpho Association access to different non-critical functions to react quickly in an emergency.

This proposal contains several adjustments to the current reward distribution scheme: 1. Remove the notion of epochs and shorten ages from 3 months to 45 days. 2. Distribute a total of 2 million $MORPHO during Age 4. 3. Transition from using the gauges system to a tailored allocation across markets.

Morpho Labs proposes to upgrade the Morpho, Lenses & Vaults for the reasons mentioned in the forum post attached to the description.

Morpho Labs proposes to update the peer-to-peer index cursor $\alpha$ on every market of Morpho where the peer-to-peer is enabled. This change should encourage further peer-to-peer matching of the liquidity. Here are the proposed values for the peer-to-peer index cursors: Morpho-Aave: DAI: 31.5% WETH: 47.4% USDC: 41.5% USDT: 70.9% WBTC: 45.4% Morpho-Compound: USDT: 58.4%

This proposal aims at introducing timelocks for the DAO and changing a few parameters in the Morpho.eth space.

Morpho Labs proposes to deprecate the FEI market on Morpho-Compound. Note that borrow and supply functions were paused on Morpho in September, there is only $26 debt remaining on Morpho, and it has been deprecated on Compound in October.

Vote for a repartition of MORPHO rewards across the different markets of the Morpho protocol.

Morpho Labs proposes to give the governance more granularity over its power on the protocols, by adding granular pausing, asset deprecation, and increase peer-to-peer deltas.

The Morpho Association proposes to whitelist Morpho’s ERC4626 vaults and the rewards distributor contract to transfer $MORPHO tokens to users. Moreover, the proposal includes the whitelisting of the Sense contracts.

The Morpho association proposes to distribute 10M $MORPHO tokens (1% of total supply) during Age 3, with a constant distribution across all three epochs. The allotment between markets would follow from gauges votes (MIP3).

Morpho Labs proposes to set up a gauge system for the distribution of Age 3 rewards. $MORPHO holder would be allowed to vote for a rewards distribution between markets of Morpho-Compound and Morpho-Aave. Learn more on the forum post: https://forum.morpho.xyz/t/mip-introducing-morpho-gauges-for-age-3/169

The Morpho Association is proposing to update Morpho’s Snapshot rule to add the delegation features and to include changes made by MIP1. Learn more on the governace post: https://forum.morpho.xyz/t/mip2-governance-update/155

Following the forum post published on August 19th: https://forum.morpho.xyz/t/mip1-early-core-contributors-allocation/94, the Morpho Association is finally proposing to allocate $MORPHO tokens to the initial core contributors of the protocol.