MORPHO is designed as the single asset that coordinates everything: the protocol roadmap, key parameters, and resource allocation. Voting power is proportional to token holdings, allowing holders to steer core decisions such as adding new risk parameters, managing treasuries, and evolving the economic framework. This approach avoids “decorative governance” and turns the token into a measurable right of action. To preserve neutrality at the core, the main contracts are immutable; governance acts on surrounding components, distribution, and the broader ecosystem. In short: governance guides, but doesn’t rewrite the rules after the fact. That separation protects predictability and strengthens the confidence of integrators and institutions that need stable rules while still wanting room to iterate on risk curation and distribution.
Legacy vs. wrapped: how the “new” MORPHO works
The original “legacy” contract didn’t support on-chain vote accounting. To make voting traceable and prepare for cross-chain interoperability, governance approved a wrapper: legacy tokens convert 1:1 into wrapped MORPHO. To avoid integration mistakes across exchanges and services, only wrapped MORPHO is transferable. Holders can wrap directly in the Morpho app or interact at the contract level if they prefer. The result is a single token that governs, votes on-chain, and, in time, circulates across multiple networks all while eliminating confusion between versions. This transition was initiated by a governance proposal and comes with a migration guide for both the interface and direct contract interactions.
Max supply and the “one-asset” philosophy
MORPHO’s maximum supply is set at 1,000,000,000 units. This cap frames the network economy and simplifies metrics for stakeholders. Beyond the number, Morpho clarified in 2025 a core alignment principle: “one asset.” All value created by contributing entities flows back to the DAO via the MORPHO token, removing fragile trade-offs between private company equity and the protocol token. A legal shift complements this: Morpho Labs became a wholly owned subsidiary of the Morpho Association, a non-profit that gathers contributors and the ecosystem. The message is straightforward: no dual capture of value, no token-versus-equity conflict, one unified incentive horizon.
Distribution as of November 7, 2024: who holds what?
The public snapshot shows a balance across community, contributors, and partners: 35.4% to Morpho Governance, 27.5% to strategic partners, 15.2% to founders, 6.3% to the Morpho Association, 5.8% to the contributor reserve, 4.9% to users and launch pools, and 4.9% to early contributors. This isn’t cosmetic: it maps each stakeholder group’s place in the network and underpins planning for future emissions. Each bucket carries published vesting and lock rules so supply flows are predictable for market participants. It also clarifies governance: the DAO and Association allocations have a clear mandate to fund growth, research, and ecosystem initiatives.
Partner vesting: three cohorts with clear dates
The 27.5% “Strategic Partners” bucket is split into three cohorts with distinct timelines. Cohort 1: 4.0% over three years, after a six-month lock-up starting June 24, 2022. Cohort 2: 16.8% initially three years from 2022 but re-locked in 2024 for linear six-month release after a six-month lock-up, fully vested by October 3, 2025 at the latest. Cohort 3: 6.7% over two years linearly after a one-year lock-up from November 21, 2024, fully vested by November 21, 2027 at the latest. These specifics provide a predictable calendar for potential supply expansions. Risk teams use them to calibrate exposure and liquidity around unlock windows; curators and integrators rely on them for user communications and incentive management.
Founders and contributors: extended commitment and transparency
The 15.2% “Founders” slice was re-aligned: after the initial scheme, co-founders accepted an additional two-year linear re-lock, culminating no later than May 17, 2028. “Early Contributors” at 4.9% followed either a three-year schedule with a six-month lock-up or a four-year schedule with four months; the 5.8% “Contributor Reserve” is dedicated to future talent: Association staff, service providers, research labs. Allocations follow public reviews and DAO votes, documenting history and usage. Transparent rules help observers anticipate issuance flows and let governance teams justify long-term decisions without surprising the market. It’s also an HR tool: networks attract better when incentive rules are public, stable, and traceable.
Transferability: community-led and staged
MORPHO launched as non-transferable to avoid a “listing day” dictated by a small circle and to reduce information asymmetry. After a year of product traction, the DAO voted to activate transferability on November 21, 2024. On that date, circulating supply was about 11.2% of the total, with a clearly stated future emission path. This sequencing has two virtues: the community chooses timing, and network ownership opens up while governance is already active. For users, migration to wrapped is a few clicks in the app, with legacy tokens remaining non-transferable to prevent operational mistakes. For integrators, clarity on contracts and official addresses limits integration friction and version mix-ups.
Governance powers and safeguards
Morpho governance is intentionally scoped to protect core immutability. Its powers include managing treasury tokens, owning the upgradable token contract, activating and setting a fee switch capped at 25% of interest paid by borrowers, listing new LLTVs and IRMs, issuing licenses via an ENS registry, and administering reference ENS domains. Process-wise, formal discussions happen on the forum, votes on Snapshot, and execution via a 5/9 multisig with elected signers. Proposal threshold: 500,000 MORPHO held or delegated, adjustable by vote. The system blends inclusivity with discipline: open doors for debate, execution bounded by public invariants and clear accountability. Governance docs tie each power to addresses and GitHub repos giving auditors and builders a verifiable source of truth.
Organizational alignment: token ↔ equity and the Association’s role
To remove conflicting trajectories between private equity and a public token, Morpho Labs became a 100% subsidiary of the Morpho Association, and the network adopted a “one asset” model: MORPHO. In practice, intellectual property and value creation link back to the DAO and token holders. The non-profit Association funds contributors, eases protocol access, and hosts documentation and the front-end, while R&D is delivered by recognized contributors. Industry press covered this pivot and its goals: reinvest fees into growth, avoid conflicts of interest, protect non-profit status, and increase clarity for institutions. For partners, the message is clear: one network, one community, one asset. For users, governance that speaks in numbers and calendars rather than slogans.
What it means for holders and builders
For holders, three numeric guideposts frame expectations: a 1 billion max supply, an initial circulating supply around 11.2% at transfer enablement, and public unlock schedules by cohort that map the 2025–2028 horizon. For builders and integrators, governance scope is readable; the capped fee switch and the ability to list new LLTVs/IRMs enable innovation without touching the core. For contributors, the dedicated reserve plus public grant reviews secure talent attraction. Finally, legal and economic alignment around a single asset simplifies conversations with regulated actors. In short, MORPHO tokenomics aren’t a “marketing table”they are executable, timestamped, quantified rules. They create a shared, measurable institutional memory. Your move: delegate, propose, and build products that compose with these invariants.
