MOR Economics

David A. Johnston
3 min readSep 8, 2024

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Image generated with Venice.AI | Article Written by A Human Mind

All Networks Live or Die Based On Their Economic Principles & Values

Morpheus is one of the first networks since Bitcoin to take a purely free market approach to every single one of its functions. Its economic theory rests on the foundations of individual sovereignty, voluntary markets, & anarcho-capitalism.

This belief in free markets to self organize has been proven out as Morpheus went from a white paper proposed by anonymous authors in September of 2023, to the first open source Morpheus install in October of 2023, to Smart Contracts for a Fair Launch in February of 2024, to the MOR token going live in May of 2024.

In the span of just 9 months with no Company, no Team, no Pre-mine, no CEO, and no Foundation, Morpheus created a powerful platform for generative AI applications. Morpheus did this as 100% open source Smart Contracts & Peer to Peer software, built in public & available to all.

The economic philosophy of Morpheus & the value of a truly Personal AI attracted hundreds of independent coders from around the world to contribute open source software, and thousands of capital providers to contribute yield from their staked Ethereum. In the first 30 days, 100,000 stETH, worth more than $300 million USD, was staked by the community. As the Capital Provider MOR emissions continue for 16 years, this attracts ever more talent & capital as if into a gravity well that becomes stronger as its network effects compound.

Every aspect of the project operates as a competitive free market.
1. Capital Providers compete to provide Liquidity.
2. Compute Providers compete to provide Inference.
3. Coders compete to provide the open source Software.
4. Builders compete to provide valuable Smart Agents to Users.
5. Reference implementation maintainers compete for Usage.

Add In Sound Economic Principles of Scarcity & Predictability of Supply

- The competition for a limited supply of 42,000,000 MOR tokens.
- It’s a fair & long term competition, as the MOR are emitted over ~16 years.
- A burning function to make MOR even more scarce.
- A tail emission that goes 256 years, the competition going for centuries.

Add In Technical Utility, Capital & Governance Use Cases
- MOR holders have access to a pro-rata amount of the Compute budget.
- MOR holders Stake MOR yield toward Builders & earn additional tokens.
- MOR holders Stake their MOR to direct Coding rewards.

Add In The Techno Capital Machine
The liquidity engine of yield provided every day from staked Ethereum isn’t centrally managed by votes or a committee, but rather added directly into Protocol Owned Liquidity. Specifically, 50% of the ETH yield is used to buy MOR from the Uniswap pool. Then, both the purchased MOR & remaining ETH are paired and added to a full-range liquidity position owned by Morpheus, known as the Protocol Owned Liquidity. This design provides a consistent demand for MOR while also deepening liquidity, making it easier for all users to buy or sell MOR tokens at scale.

Unstoppable Progress & Massive Scale
Combined these elements have incentivized a global community of builders to collaborate together at a massive scale that is only accelerating. As Smart Agents serving our individual personal AIs, become the vast majority of economic activity in the coming years, Morpheus will be there serving as the beating heart of Free AI.

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David A. Johnston
David A. Johnston

Written by David A. Johnston

Technologist, Voluntarist, Future Martian Settler, & Evangelist for Decentralization.

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