The token is a claim on fees that already exist.
There is no token yet. When there is one, it will not be paid for by inflation — every mechanism below is running on this chain today, taking a real fee out of real interest. What is undecided is said so, plainly, further down.
Where the money comes from
A lending protocol has exactly one honest revenue line: a share of the interest borrowers pay lenders. Everything else is a story.
Performance fee
10%
Taken from the interest the vault earns, never from the deposit. A lender who deposits a dollar can always withdraw a dollar; the fee only ever touches yield that was produced.
Today's fee
0%
Zero for the first 90 days. A curator with no track record charging a full fee is asking to be paid for a service nobody has seen work yet.
To stakers
75%
Of whatever fee is collected. Streamed by the second in USDG, not in newly minted tokens — a reward paid in the thing being minted is not a reward.
To treasury
25%
Audits, oracle coverage, keeper gas and the liquidity that makes a new market usable on day one.
Creator fee
5%
On trading of the protocol token itself, routed to stakers rather than to us. It exists because the fee is collected whether or not anyone directs it, and stakers are the better recipient.
Borrower rebate
10%
Of the interest a borrower pays comes back to them weekly, through a Merkle epoch, weighted by an off-chain credit score. The score can move what you are paid. It can never move what you are allowed to borrow — that is the oracle's job and the LLTV's, and handing it to a score would make a spreadsheet into a risk parameter.
Builder share
50%
Of the performance fee on volume a builder referred goes to that builder. Attribution rides in a calldata suffix, so an integrator needs no permission and no contract of ours to be credited. How it works.
Flash loan fee
0%
Morpho charges nothing for a flash loan and neither do we. It is what makes a liquidation possible with no capital, which is what keeps liquidations prompt and competitive rather than reserved for whoever is already rich.
What it will control, and what it will never touch
Most of this protocol is deliberately outside anyone's reach, including ours. A token that could change those parts would be a liability, not a feature.
Governable
- Which markets a vault may lend into, and the cap on each. This is the whole job of a curator and the one place a mistake by us can cost a depositor money.
- The performance fee, between zero and the ceiling the vault was deployed with.
- The split between stakers and treasury, and the size of the borrower rebate.
- Who holds the guardian role — the address that can veto a pending cap change inside the timelock window.
Not governable, by construction
- Your deposit and your collateral. They sit in Morpho Blue, which is immutable. No vote reaches them, and no key of ours does either.
- A market's LLTV, oracle or interest model. Fixed at creation, forever. Changing risk means opening a different market and letting people move, not editing the one they are already in.
- Liquidation. Open to anyone, permissionless, priced by the same oracle for every participant.
- Withdrawal. There is no lock and no emergency pause on getting your money out. What limits a withdrawal is utilisation and nothing else.
What is not decided yet
Written down rather than left vague, because a number invented for a page becomes a promise the moment somebody screenshots it.
Total supply
No figure has been set. There will not be one here until it is fixed on chain.
Distribution
No allocation table, no percentages, no vesting schedule. The parts that are decided — that rewards are paid in USDG out of collected fees, and that nothing is minted to pay them — are above.
Launch date
Not set. The protocol works without a token today; a token launched to create momentum rather than to distribute a fee stream is the failure mode this page exists to avoid.
Airdrop
Season One points are being counted now, from real supply and borrow size held over real time. Whether and how they convert is not decided. Points are a record of what you did, not a promise about what you get.
What a fee actually looks like at today's size
$0.00 is supplied across 43 markets right now, and $0.00 of it is borrowed. At the current fee of 0% the protocol is collecting nothing, on purpose, and the page will not pretend otherwise. When the fee turns on, 75% of it goes to stakers.
Watch the real numbers on Stats and the transactions behind them on Activity.