Dynamic Supply Undergoes a Metamorphosis to Morph.Finance

Our mission is to balance inflationary growth with real value production from DeFi services

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Receive a 1:1 migration to the new Morph Coin and Morph Tracker

Morph into Better Tokenomics

The benefit of an accelerated version of Dynamic Supply allowed us to witness how the Basis system plays out in a concentrated true form. It is not sustainable as there is no outside value production factor that counteracts the inflationary expansion, which subsequently renders Notes useless as the system has no inherent means to remove such debt. We’ve therefore carefully calibrated a better balance and made some changes by introducing Morph Finance — a redeveloped version of Dynamic Supply with newly tweaked tokenomics:

  1. DST replaced with MORC (Morph Coin) and DSTR replaced with MORT (Morph Tracker)
  2. Epoch length is now 8 hours; inflation rate of 1.1x remains the same and requires 2 epoch minimum lock to claim rewards
  3. Selling MORC when it is <1 DAI in value introduces a scaling burn tax, at a percentage rate of 1 minus [MORC price].
  4. 75% of the taxed amount of MORC is burned, and 25% of the MORC goes into the Reoptimizer.
  5. DST and DSN will receive 1:1 conversion to MORC, and DSTR will receive 1:1 conversion to MORT for the first 100k DSTR only.

Value Backed Stabilization

The Burner and Regenerator mechanics will still be introduced into Morph Finance, consistent with our intended roadmap, in order to provide arbitrage mechanics and prevent unbalanced downward pressure on any one particular liquidity pool. More importantly, inflationary growth needs to keep in line with actual value production. We are replacing the bond system with various DeFi service platforms, with the first one being a Liquidity Pool swapper built on our Zapper system, for any farm-to-farm swap. Part of the fees will be used to create upwards pressure on MORC which keeps excessive inflationary growth in check, and keeps MORT participants that “mine” MORC further incentivized.

Dynamic Supply Migration

If you currently are a Dynamic Supply holder (DST, DSTR, or DSN), you will be eligible to swap your tokens to Morph tokens at a 1:1 rate. Every DST and DSN token are eligible to be swapped to MORC at a 1:1 rate, and DSTR can be swapped over to MORT at a 1:1 rate with a limit of 100k DSTR tokens, swapped at a first-come-first-serve basis. We’ve decided to limit the amount of DSTR that can be swapped to 100k, because that is the approximate amount of DSTR currently in circulation from DSTR farming at the time of the release of our migrator contract. We will distribute the remaining MORT tokens to LP farms throughout 60 days, with the MORC farm receiving 100k MORT to distribute and the MORT farm receiving 50k MORT, thus reducing the emission rate of MORT.

Morph Coin (morph.finance) is an experimental algorithmic stablecoin that balances inflationary growth and Defi product value.

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