Age 1
The first age of distribution was made to:
- Begin the decentralization of the protocol.
- Bootstrap the initial activity and liquidity of the protocol.
- Bootstrap interest in the Morpho protocol and get people to understand the new concepts it brings.
- Build trust in the protocol.
The initial distribution began on 08/06/22 at 5 pm CET to reward initial users and ended on 20/09/22 at 5 pm CET. This age is divided into three epochs of around thirty-three days.
Five million MORPHO tokens will be allocated during this period.
| Age 1 - Epoch 1 | Age 1 - Epoch 2 | Age 1 - Epoch 3 |
|---|---|---|
| 08/06/22 - 13/07/2022 | 13/07/22 - 16/08/22 | 16/08/22 - 20/09/22 |
| 350,000 MORPHO | 1,700,000 MORPHO | 2,950,000 MORPHO |
Tokens are distributed to Morpho lenders and borrowers according to the following rules:
- To favor rational behaviors, each market in Morpho CompoundV2 Optimizer receives a share of the total amount distributed. This share is proportional to the sum of the supply and the borrowed volume of the corresponding market on Compound.
- For each market, the supply side and the borrowing do not share the rewards evenly. The supply side gets a share equal to
p2pIndexCursor,and the borrowing side gets1-p2pIndexCursor.
As a reminder, p2pIndexCusor is the position of the P2P APY within the spread. If the P2P APY is in the middle of the spread, it is 50%.
Age 1 is now over. You can check out the Merkle trees calculated here:
The algorithm used is open-source and available here. You can run it yourself to verify the results in a trustless way.