> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dynamo.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Morpho Governance

> How Morpho DAO governs protocol-level parameters, how the MORPHO token works, and how Dynamo participates as a SubDAO providing risk analytics and delegated votes.

Morpho is a decentralized protocol governed by MORPHO token holders through Morpho DAO. As a Dynamo user, you interact with Morpho's smart contracts directly, which means Morpho governance decisions directly affect the products you use.

## Morpho DAO Structure

Morpho DAO governs the Morpho protocol through on-chain proposals and voting. The DAO controls:

* **Fee switches**: Whether and how much the protocol collects from market activity
* **IRM whitelisting**: Which Interest Rate Model (IRM) contracts can be used in new markets
* **Oracle policies**: Approved oracle adapters and price feed configurations
* **Risk parameters**: Global and per-market configuration bounds
* **Protocol upgrades**: Changes to core [Morpho Blue](https://dynamo.finance/) contracts

## The MORPHO Token

MORPHO is the governance token of Morpho DAO. Its primary utility is **voting on protocol proposals**.

Key properties:

* Voting power is proportional to MORPHO held or delegated
* Tokens can be delegated to other addresses (including the Dynamo DAO) without transferring ownership
* Non-transferable at launch; transferability subject to DAO vote

## How Dynamo Participates

Dynamo operates as a **SubDAO** within the Morpho ecosystem. This means:

<CardGroup cols={2}>
  <Card title="Treasury Holdings" icon="piggy-bank">
    Dynamo DAO holds MORPHO tokens in its treasury, giving it direct voting power in Morpho governance.
  </Card>

  <Card title="Risk Analytics" icon="chart-bar">
    Dynamo compiles risk data on markets, oracles, and parameter proposals and submits analysis to Morpho governance discussions.
  </Card>

  <Card title="Delegated Voting" icon="share-nodes">
    DYNAMO holders can delegate their MORPHO voting power to Dynamo DAO, amplifying the SubDAO's influence on protocol decisions.
  </Card>

  <Card title="Community Voice" icon="comments">
    Dynamo surfaces Morpho proposals to its community, aggregates sentiment, and votes on behalf of the broader Dynamo ecosystem.
  </Card>
</CardGroup>

## Staying Informed

Dynamo tracks Morpho governance closely and communicates relevant proposals to the community:

* Active proposals and voting summaries are published in the Dynamo community forum
* The Dynamo DAO publishes its voting rationale before casting MORPHO votes
* Users who delegate to Dynamo can follow along and signal their preferences

<Note>
  Morpho governance is independent of Dynamo. [Morpho DAO](https://dynamo.finance/) decisions apply to the underlying protocol and cannot be overridden by Dynamo governance.
</Note>