MOR20 – The Standard for Launching New Token-based Projects
By Evan LaMontagne, Portfolio Manager, Sarson Funds
The cryptocurrency landscape is continually evolving with innovative solutions aimed at enhancing liquidity and increasing token utility. Gone are the days when a project could announce the launch of a token through and ICO and expect the crypto community to turn a blind eye to the fact that the developers and early investors were going to retain an outsized allocation in the project that would make then forever in control of the direction of that project and the only significant winners if the project’s plan actually succeed. Recently, MOR20 protocol has become the golden standard for a truly “Fair Launch”. It has been developed with and is being used by some of crypto’s most recent and successful project launches, including decentralized AI darling, Morpheus AI.
MOR20 protocol has pioneered a novel mechanism tailored for staked Ether (stETH) holders. This protocol revolves around a unique concept of re-staking, where users voluntarily give up potential yield earnings on their stETH in exchange for native tokens of the new projects adopting MOR20. This facilitates a fair launch framework for utility tokens, allowing projects to deploy tokens equitably based on yield sacrifices rather than initial monetary investment. “MOR20 represents a new crypto primitive which enshrines the core values of fairly launching open-source software. Contributors can participate without risking their capital and withdraw participation should the project not deliver on its goals”. -Matt McKibbin – Advisor to 6079.ai and Morpheus AI.
The operation of MOR20 is straightforward yet impactful. When participants re-stake their stETH in a self-custody process through platforms utilizing MOR20, they forgo the usual yield generated from Ethereum staking. This forfeited yield is then pooled and serves two critical functions: it bolsters liquidity and finances various developmental initiatives of new projects. This mechanism of redirecting yield into strategic areas of a project helps in building a robust liquidity pool, making the platform more stable and appealing to potential investors and users.
Consider a hypothetical scenario where a new DeFi or token utility project adopts the MOR20 protocol. By integrating MOR20, this project can direct the accumulated staking yields towards expanding its ecosystem or developing innovative services that require initial capital. These reallocated yield funds projects that might include new blockchain tools or enhanced features, contributing to the overall growth and innovation within the platform.
The distribution of native tokens to users under the MOR20 protocol plays a critical role in aligning the interests of users with the long-term success of these projects. Participants receive tokens in proportion to the yield they relinquish with their restaked stETH, effectively gaining a stake in the project’s future, while remaining long on Ethereum. This incentivizes them to engage more actively in governance and other community-driven activities, fostering a committed user base that is crucial for the decentralized growth of these MOR20 protocol projects.
As the crypto sector matures, the MOR20 protocol exemplifies how staking mechanisms can be creatively adapted to support the infrastructure and community engagement of decentralized platforms. This protocol not only enhances initial bootstrapped liquidity but also ensures a sustainable and community-focused growth trajectory for new projects in the crypto landscape. Such innovations are essential as they provide a blueprint for future developments in decentralized finance, paving the way for more dynamic and inclusive financial ecosystems without the need for presales, seed rounds or venture capital.
Disclosures: Not investment advice. The Author, Sarson Funds, Inc. and its affiliated managers may hold positions in the projects mentioned.
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