About Morpher Tokens (MPH)
All traders on Morpher are also Morpher token (MPH) owners. This short overview covers the basics of MPH tokens and the overall token economy. You’ll find more detailed information on distribution, supply, and demand in Token Economics.
Every trade on Morpher is placed using MPH tokens, and all gains/losses are paid out in MPH. Even with fiat-stable trading planned in a future release, MPH will always be the settlement currency. This is because MPH uniquely enables the entire Morpher Protocol.
MPH is an ERC20 token, built on top of Ethereum like many Decentralized Finance (DeFi) tokens. Some of the most popular cryptocurrencies are ERC20 tokens. Following the ERC20 token standard makes MPH natively compatible with nearly all crypto wallets and crypto exchanges.
MPH tokens are available for buying and selling on several crypto exchanges. A user's ability to convert MPH into other currencies and vice versa, as well as the currencies available, will vary by exchange. Support for more exchanges and easier buying and selling is always in development.
The MPH token's price is free-floating, not fixed. Instead the price is determined by trading activity on crypto exchanges where MPH is listed. This is directly analogous to most major currencies such as $ Dollars, £ Pounds, or € Euros. All of these currencies have an external price that is set by traders on foreign exchange markets.
The reason MPH should increase or decrease in price can be generalized as token supply versus token demand.
MPH can also be valuable to non-traders if its price rises over time. The key insight is that inflation alone does not determine the price of MPH. Even with inflation, as long as demand is greater the token price should appreciate. So investors who just hold on to MPH benefit alongside platform growth, where new accounts/investments outpace token minting.
Demand for MPH generally mirrors demand for trading on Morpher. Token demand grows along with demand for investing, either as new accounts or larger balances for existing accounts. As long as traders find trading on Morpher useful (because of 24/7 markets, fractionality, shorting, or any other feature), token demand will increase. Greater demand relative to supply suggests greater value per token.
Supply of MPH is not fixed as well, tokens are created and destroyed based on a few factors: success of traders on Morpher, spreads, and operating rewards. Traders that make a successful investment increase the token supply, while traders that sustain a loss reduce the token supply. Market spreads, set dynamically by Morpher, reduce the token supply by forcing some tokens to be burned on every trade. And operating rewards are covered below. Lower supply relative to demand suggests greater value per token.
Just like major currencies, MPH experiences inflation (when supply increases overall). On Morpher this happens when traders make successful investments overall. This inflation rate becomes the minimal performance you want to achieve with your own Morpher portfolio.
The US Dollar, for example, has an annual inflation rate of ~2%. Owners of USD benefit by placing dollars in the stock market where annual returns often outperform the inflation rate. With MPH, achieving inflation-beating returns means placing more profitable trades than the average Morpher user.
Without fixed supply and a free-floating price, any major currency faces some risk of hyperinflation. For MPH the factors mitigating that risk are diverse markets, the rarity of amazing traders, and the effectiveness of spreads.
For very high inflation, Morpher would need to have incredible collective investment success. This means the traders on Morpher would be some of the best in the world. A new opportunity would arise to become a very profitable, decentralized hedge fund (and comes with a completely different set of tokenomics).
Selling pressure on crypto exchanges does not change the utility of MPH. The entire Morpher protocol works at any token price. At lower prices, trading on Morpher actually becomes cheaper and more efficient than any traditional brokerage platform. This in turn can cause the token price to rise again. Another important factor is the distribution of Morpher tokens described below.
Through the rewards program on the Morpher platform, users receive MPH if they have been referred by or refer another user, and deposit funds onto their account. These rewards will diminish over time but play an important role in maximizing distribution of MPH tokens. The best distribution for long-term value is spread widely among real users.
Usage
Every trade on Morpher is placed using MPH tokens, and all gains/losses are paid out in MPH. Even with fiat-stable trading planned in a future release, MPH will always be the settlement currency. This is because MPH uniquely enables the entire Morpher Protocol.
Token Structure
MPH is an ERC20 token, built on top of Ethereum like many Decentralized Finance (DeFi) tokens. Some of the most popular cryptocurrencies are ERC20 tokens. Following the ERC20 token standard makes MPH natively compatible with nearly all crypto wallets and crypto exchanges.
Buying and Selling
MPH tokens are available for buying and selling on several crypto exchanges. A user's ability to convert MPH into other currencies and vice versa, as well as the currencies available, will vary by exchange. Support for more exchanges and easier buying and selling is always in development.
Price
The MPH token's price is free-floating, not fixed. Instead the price is determined by trading activity on crypto exchanges where MPH is listed. This is directly analogous to most major currencies such as $ Dollars, £ Pounds, or € Euros. All of these currencies have an external price that is set by traders on foreign exchange markets.
The reason MPH should increase or decrease in price can be generalized as token supply versus token demand.
Why HODL?
MPH can also be valuable to non-traders if its price rises over time. The key insight is that inflation alone does not determine the price of MPH. Even with inflation, as long as demand is greater the token price should appreciate. So investors who just hold on to MPH benefit alongside platform growth, where new accounts/investments outpace token minting.
Demand & Supply
Demand for MPH generally mirrors demand for trading on Morpher. Token demand grows along with demand for investing, either as new accounts or larger balances for existing accounts. As long as traders find trading on Morpher useful (because of 24/7 markets, fractionality, shorting, or any other feature), token demand will increase. Greater demand relative to supply suggests greater value per token.
Supply of MPH is not fixed as well, tokens are created and destroyed based on a few factors: success of traders on Morpher, spreads, and operating rewards. Traders that make a successful investment increase the token supply, while traders that sustain a loss reduce the token supply. Market spreads, set dynamically by Morpher, reduce the token supply by forcing some tokens to be burned on every trade. And operating rewards are covered below. Lower supply relative to demand suggests greater value per token.
Currency Inflation
Just like major currencies, MPH experiences inflation (when supply increases overall). On Morpher this happens when traders make successful investments overall. This inflation rate becomes the minimal performance you want to achieve with your own Morpher portfolio.
The US Dollar, for example, has an annual inflation rate of ~2%. Owners of USD benefit by placing dollars in the stock market where annual returns often outperform the inflation rate. With MPH, achieving inflation-beating returns means placing more profitable trades than the average Morpher user.
Can MPH have hyperinflation?
Without fixed supply and a free-floating price, any major currency faces some risk of hyperinflation. For MPH the factors mitigating that risk are diverse markets, the rarity of amazing traders, and the effectiveness of spreads.
For very high inflation, Morpher would need to have incredible collective investment success. This means the traders on Morpher would be some of the best in the world. A new opportunity would arise to become a very profitable, decentralized hedge fund (and comes with a completely different set of tokenomics).
What if MPH is dumped on crypto exchanges?
Selling pressure on crypto exchanges does not change the utility of MPH. The entire Morpher protocol works at any token price. At lower prices, trading on Morpher actually becomes cheaper and more efficient than any traditional brokerage platform. This in turn can cause the token price to rise again. Another important factor is the distribution of Morpher tokens described below.
Why is MPH given away for free?
Through the rewards program on the Morpher platform, users receive MPH if they have been referred by or refer another user, and deposit funds onto their account. These rewards will diminish over time but play an important role in maximizing distribution of MPH tokens. The best distribution for long-term value is spread widely among real users.
Updated on: 22/11/2023
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