As the regulatory environment becomes more favorable, Defi protocols and companies are becoming accustomed to promoting direct value tokens, while many protocols engage in token buybacks, while lending protocol morpho takes a slightly different approach.
Morpho CEO and co-founder Paul Frambot published the article on Friday, revealing that Morpho Labs is set to become a wholly owned subsidiary of the Morpho Association, and will ultimately be owned by Morpho Token owners.
Unlike the popular tokenback business models employed in protocols such as Hyperliquid and Sky/Maker, Morpho reinvests protocol fees directly into the product itself. Frambot argues that instead of distributing the protocol, reinvestment protocol fees “generate exponential value for the network.”
In addition to growing the network, the goal of the restructuring is to address the perceived conflict of interest between Morpho Labs and the Token owner stockholders. Through this move, the value of Morpho Labs will be directly aligned with the value of Morpho tokens through the Association and DAO.
French non-commercial law prohibits the Morpho Association from having shareholders and externally sharing profits. As a result, Morpho Labs, a French joint corporation, has made a 100% stake transfer to the association, making it a wholly owned subsidiary.
New Morpho Structure – Paul Franbot
Frambot also cited its desire to run Morpho as a company during the scale-up phase. According to Frambot, during the scale-up phase, the company must choose “today’s insignificant distribution or tomorrow’s exponential growth.”
Morpho tokens have risen by about 8% since the article was published. The token has been in range since it was released in March 2024 when it was released for $1.2.
Despite overwhelming token performance, the morpho locked total is nearing its all-time high of $4 billion in January, an increase of 560% since the beginning of 2024.