The solution of Morpho Labs to transform into a subsidiary of the non-profit Morpho Association*is more than just a financial maneuver
For me, this step of Morpho*_ is a confirmation that the true ideals of Web3 are still alive. The rejection of the traditional model of profit-driven shareholder capital in favor of Community_*is not just about finances, it's about restoring trust. They are building not just a protocol, but a true decentralized legacy.😊
This is essentially a new social contract between the protocol developers and its community. In a world where even 'decentralized' projects are sometimes secretly run by the interests of a narrow circle of venture investors, Morpho offers an Anti-Model.
Overcoming, Founders' Conflict,
Imagine a typical DAO: the team creates a protocol, sells tokens to private investors (for Equity) and the community (for Token), and then hands over the management of the DAO. The problem arises here. 🤦Now we see that the interests of developers and token holders finally completely align. As a community member, I feel I have a real impact on the project's fate. This is a new governance standard that eliminates conflict and makes MORPHO not just a token, but a share in the future of decentralized lending. Shareholders' Interests (Equity holders): Maximize the profit of the developer company. Token Holders' Interests (Token holders): Make the protocol cheaper, safer, and more innovative, increasing the value of the MORPHO token.
These two interests often conflict. The team, having obligations to private investors, may choose less risky but less innovative paths.
Morpho has broken this node_-_Having become a 100% subsidiary of the Association, Morpho Labs is legally obliged to act only in the interests of the Association, and the Association, in turn, represents the interests of all MORPHO token holders.
🛡️ 🏋️ Resilience and Durability 🏋️
This model is critically important for the longevity of infrastructure projects such as Morpho, a lending protocol.
Mission Protection, The non-profit structure ensures that the resources generated by the protocol (fees) will not be directed to dividends for private shareholders, but to the improvement, security, and expansion of the protocol itself. This is an investment in its network effects.
Attracting Talent: By freeing the team from the pressure of short-term profitability, Morpho can attract the best developers focused on fundamental engineering challenges and long-term vision, rather than quick profit 'shaving'. They are building infrastructure, not just an application.
Legal Clarity: In an era of regulatory uncertainty, having a clear non-profit organization that manages a commercial developer in the interests of the DAO provides significantly greater legal resilience and transparency.
The Future of DeFi Governance
Morpho demonstrates that there are better ways to finance and govern. Their path_-_is a call to action for other large DAOs. If you are building a critically important piece of financial infrastructure, should it belong to a narrow circle of private investors, or collectively to those who use and govern it?
Morpho chose the second option, and that is why this 'legal paper' feels like a true revolutionary act in a field that strives for decentralization. They didn't just change the structure, they put their money 💸
*and their team* to where their values are.
This decision is a truly revolutionary act. Morpho has not only changed its legal address_- it has rewritten the rules of the game, proving that long-term vision and collective interests can prevail over short-term financial gain. I hope other large DAOs follow this example.@Morpho Labs 🦋
