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Dynamo Finance operates at the intersection of two governance layers: its own platform-level governance and Morpho DAO’s protocol-level governance. Because Dynamo is a SubDAO of Morpho, governance is a core part of its operations, not an afterthought.

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Two Layers of Governance

Dynamo Governance

Platform-level decisions: fee structures, new features, treasury spending, and the path toward progressive decentralization.

Morpho DAO Governance

Protocol-level parameters: IRM whitelisting, fees, oracle policies, and risk configurations voted on by MORPHO token holders.

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How They Interact

  • Dynamo DAO holds MORPHO tokens in its treasury.
  • Dynamo token holders also influence Morpho DAO votes through delegated voting, DYNAMO holders delegate their MORPHO to the DAO, which casts votes on their behalf.
  • Dynamo acts as a SubDAO that compiles risk analytics, aggregates community sentiment, and participates directly in Morpho governance discussions and on-chain votes.
  • Decisions that affect Morpho protocol parameters (e.g. new market approvals, IRM changes) are surfaced to the Dynamo community before the DAO votes.

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Why Governance Matters for Dynamo

As a SubDAO, Dynamo’s ability to influence the Morpho protocol directly impacts the products it can offer. This makes active governance participation essential:
  • Risk analytics: Dynamo compiles and presents data to inform Morpho parameter decisions.
  • Protocol influence: The DAO’s MORPHO holdings allow it to push for changes that benefit Dynamo users.
  • Community voice: Dynamo token holders have a direct path to influencing both platform and protocol decisions.