Inefficiency is rife almost everywhere. It doesn't matter whether you are talking about the public or private sector, first-world or third-world countries. Across every sector, mistakes, incompetence, and corruption lead to huge bureaucratic and administrative costs that eventually add up to higher costs for final consumers.
AI promises to solve these problems while maintaining the same, if not better, economic output with minimal human participation.
This might sound bad for the future of work - and it is, but that's another discussion.
In the meantime, this new Web3 upstart is championing a new world where AI manages everything.
Can AI be implemented across the board in every sector?
This is the big question, and if this project succeeds, you'll be riding the narrative all the way to the peak.
TLDR
- This new Web3 project aims to create an "AI hivemind" to optimise the global economy by leveraging decentralised AI agents and smart contracts.
- It rewards contributors who provide resources like code, computing power, and community engagement to enable AI-powered dApps.
- The native token is distributed through an stETH liquidity mining launch, demonstrating significant demand (~$400 million+ staked).
- The tokenomics model derives token value from stETH yield, with emissions capped at 42 million tokens.
- Rough calculation points to a $352M fully diluted value currently, but with high ambition projections up to a $10B valuation
- Early investors could see a 28x upside if the "AI hivemind" vision for optimising the economy is realised.
Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. "One Glance" by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. These are not signals, and they are not financial advice.
Introducing Morpheus
Morpheus is not a one-size-fits-all solution, but it does bring problem solvers together. Consider it a network where the "doers" of society are brought together to create the AI necessary to optimise the global economy.
Morpheus represents a decentralised network where contributors are rewarded for providing the resources to develop and deploy AI-driven dApps and "smart agents" - Web3-enabled personal AI assistants.
These smart agents are general-purpose AIs that can execute smart contracts on a user's behalf by leveraging large language models to convert human instructions into executable code for Web3 interactions. Morpheus essentially serves as the base layer, allowing smart agents to interact seamlessly across the entire Web3 ecosystem.
Think of Morpheus as the Google of Web3. Just as search engines revolutionised accessibility to the Internet in the 1990s, Morpheus aggregates and provides access to all on-chain Web3 activity through user-controlled smart agents. This eliminates the currently siloed nature of Web3 interactions, dramatically lowering the entry barriers for both crypto-natives and newcomers.
Morpheus Network
While Morpheus does not yet offer a native chain for dApp development, it promises to unleash a new era of open accessibility and AI-driven efficiency across the decentralised web. It is a true game-changer aiming to be the gateway that ushers in Web3 for the masses.
Morpheus aims to create a network where anyone can access and implement Web3 technology in their business or personal life. Morpheus "agents" are like your own smart, qualified personal AI assistants who can aid you in almost any task.
The processing power required to operate these agents is provided by a decentralised network of computers.
By combining the best of Web2 and Web3 and with a prompting interface similar to the well-known and widely used ChatGPT, Morpheus essentially acts as an AI hivemind capable of producing a viable solution to ANY problem.
MOR token
MOR is an Arbitrum-based token that acts as the utility and governance token for the Morpheus network. It is used to:
- Gain access to the network's computing resources.
- Rewarding ecosystem contributors.
- Community emissions are rewarded to frontends, smart agents, and their supporters (stakers).
Fair launch
MOR is in a fair launch process, which started on February 8, with an stETH liquidity pool taking deposits. The idea is that by depositing stETH, Morpheus distributes MOR tokens based on the yield generated by deposited stETH.
The goal is to provide MOR with a sort of "backing" (in a loose sense of the word) in that yield generated by the deposited stETH assigns a relative value to the MOR token.
In addition to taking some yield to generate MOR, Morpheus also takes a portion of the yield for operational costs and bootstrapping. These funds are sent to the treasury for ecosystem development and other operations.
On May 8, a MOR liquidity pool will be launched on Arbitrum, and tokens can be claimed by those who have participated in the launch.
As you can see from the figures above, the pool has been heavily subscribed, peaking at ~128,000 stETH, or ~$400 million at the time of writing.
To clarify, you won't be able to claim or trade MOR tokens until May 8. You can find more details about the fair launch here.Tokenomics
The contributors to the ecosystem are rewarded by an emissions program outlined above:
- Code: these contributors build Morpheus code and implement smart agents.
- Compute: this is the processing power that makes it all happen, similar to validators on other networks.
- Community: primarily focused on adoption by creating frontends for Morpheus and its agents.
- Capital: responsible for the “Techno Capital Machine”, essentially a source of liquidity for the ecosystem (stETH depositors, for example).
In addition, the protection fund receives 4% of emissions to be used as a rainy day fund.
Total MOR emissions will be capped at 42,000,000 MOR, which gives us a number to calculate an FDV.
Given that it doesn't have a liquidity pool yet, and we do not have definitive figures on how much MOR has been distributed up to now, we do not have a market cap to work with, but we can calculate an FDV:
- The most recent figures are 112,000 stETH deposited, generating ~3400 MOR daily.
- Lido APR is at 3%.
- We can calculate the daily rewards generated for 112k stETH -> (112k stETH * 0.03) / 365 = 9.2 stETH.
- ETH is worth $3100 -> $28,520 generated in one day from 112k stETH.
- 3400 MOR generated from $28,520 -> $8.39 per MOR.
- This gives us a (rough) FDV of $8.39 * 42 million = $352.4 million.
Valuation
128k stETH deposited at the peak is no joke and screams conviction from investors. Although they can remove their stETH at will, it’s clear that there is a strong belief in the ecosystem and what they’re trying to achieve.
We do not have many figures to work with here. Still, an ecosystem of AI protocols backed by computational power and self-generating revenue through stETH staking is very much a viable economic model.
Given the circumstances and the level of information and data we have available at the moment, our preliminary targets would be:
- Bear case: $3 billion FDV, or an 8.5x upside from here - $71.32 per MOR.
- Bull case: $10 billion FDV, or a 28x upside from here - $234.92 per MOR.
Please note that these figures may change once we have clarity on MOR distribution on May 8.
Cryptonary's take
Whether or not Morpheus can live up to expectations is unknown at this stage.
One clear thing, though, is that we haven't seen this level of participation in a token generation event (TGE) in any of the AI projects we've covered.
Consider Morpheus the Swiss army knife of all Web3 AI projects. The closest comparison would be ChatGPT, but think of Morpheus as a type of ChatGPT constantly being refined by an army of developers, contributors, and end users, all aligned by the MOR token.
In a world where the perfect AI is the Holy Grail for efficiency, Morpheus is like King Arthur assembling the knights of the Round Table in pursuit of the Grail. Only there are millions of knights, and the table is a network of thousands of computers.
Morpheus is daring the impossible; if it succeeds, it will set a paradigm shift in optimising the global economy.
This is a wildcard bet for dreamers, and dreamers make the world beautiful.
Cryptonary, out!
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