Dear Morpheus Swap community,
Over the past months, I (Morpheus) have been working hard preparing to launch Morphex, as some of you may know, we’ve gone through various protocol design iterations and have now settled on what has already been introduced in December — a decentralized perpetual trading platform for Fantom traders to call home. I’m happy to say that we now have 2 new advisors on the team working diligently on Morphex. After much time spent conducting a deeper analysis, we’ve identified many improvements to the original suggestions that would greatly enhance Morphex’s potential, and have been able to come up with a plan that we believe would allow for sustained growth in a highly competitive environment while not diluting original PILLS holders more than it enables the future potential of the new Morphex protocol. Everything is being modeled in such a way to position Morphex for success.
We propose a simple migration, where the exchange rate of PILLS to MPX would be 1:1. After swapping PILLS to MPX, 50% of the MPX would be immediately available, with the other 50% vesting linearly over a period of one year. Users would be able to claim their vested tokens however often they’d like, and they would be able to visit a simple interface to facilitate this. The migration would be live for a specific period of time — voted on by PILLS holders.
For the token supply of MPX, the maximum supply will be 50 million tokens, with the following planned token distribution:
- 20% of MPX would be reserved for the PILLS migration, with half of it being immediately available upon launch, and the other half vesting linearly over a year. 1% of this would be used in an airdrop for early PILLS holders back in April 2022, as has been discussed with the community earlier (a detailed analysis of this snapshot may be found here).
- 25% to be used as protocol liquidity incentives in the form of an escrowed token reward (esMPX). Earned esMPX would have 2 utilities: vesting over a year to become MPX, or staked for protocol rewards just like MPX. We won’t be using an iron-clad emission rate as with Morpheus Swap, instead, the team will monitor and analyze the performance of incentives and balance accordingly, presenting all findings to the community.
- 45% to be allocated to the Morphex Treasury. This would be used for marketing incentives, partnerships, capital-raising rounds, to provide protocol-owned liquidity, and to compensate community contributors. Treasury expenses will be transparent and presented to the community.
- 10% to be allocated to the team, according to the same vesting schedule for PILLS holders — linearly over one year.
This token distribution should be able to secure a significant runway for the new protocol while providing adequate incentives. It’s paramount for Morphex to acquire sufficient funds to facilitate deep initial trading liquidity, pay for development costs, cover audits and bug bounties, and incentivize the future MPX-FTM LP on external platforms in ways that would further stimulate growth. Additionally, a unique utility-based NFT system has been in the works with more details coming soon.
This coming week, we will also begin tapering off PILLS emissions in preparation for the migration and transition to the new protocol. This will also be separately announced in our social channels to help prepare users ahead of time.
In general, the planning and development phases are nearly complete. Next, a governance proposal for PILLS holders will go live after some time has passed for the community to review this article. Governance votes are subject to a 5-day runtime. If passed, the next steps would be officially transitioning the branding for Discord and Twitter accounts, followed by launching the raises and token migration, and last but not least, Morphex!
