Edge Podcast - Morpheus: AI Revolutionizing The Crypto UX - Revelo Intel

Edge Podcast – Morpheus: AI Revolutionizing The Crypto UX

In this episode of The Edge Podcast which took place on May 8, 2024, DeFi Dad, Nomatic, and David discuss Morpheus, AI agents, $MOR token, and more. Read our notes below to learn more.


What is Morpheus? Why AI agents can fix the crypto UX?

  • David says that the release of Llama 3 marks a significant milestone as an open-source model comparable to GPT-4. The ability to connect powerful tools to run agents linked with smart contracts and user wallets is crucial. Various community events focusing on decentralized AI have been occurring globally post-ETH Denver.
  • He adds that DeFi transactions are intricate processes that may be simplified through technologies like Morpheus.
  • David says that Morpheus is positioned as a personal AI tool connected to individual wallets, offering autonomy over data and prompts. The concept of a permissionless network enabling access to various smart agents through personal AIs is quite important.
  • He adds that Morpheus AI operates as a personal, open-source AI that can be run locally or accessed through a network. Users can leverage Morpheus for tasks like generating images or videos using AI services offered by various providers connected to the network. The platform enables users to build interfaces on top of Morpheus, with plans for a testnet launch in May to facilitate decentralized computing.
  • David says that inspired by decentralizing hash power in Bitcoin, Morpheus aims to decentralize inference for AI, rewarding token holders with access to compute resources on the network. Holding $MOR tokens grants individuals rights to inference without spending them, fostering community participation and engagement.
  • He adds that Morpheus rewards not only capital providers but also coders and builders contributing to the ecosystem, creating a diverse incentive structure. Unlike many projects focusing solely on proof of stake or proof of work, Morpheus recognizes the importance of rewarding developers actively involved in building smart agents.

Threat of regulating open source AI

  • David says that the executive order from October raises concerns within the AI community regarding open-source technologies being classified as weapons based on their dual-use capabilities. He makes comparisons with past attempts at regulating technology such as email encryption, highlighting challenges in enforcing bans on mathematical concepts like encryption.
  • He adds that the order has spurred interest in peer-to-peer systems and decentralization within the AI sector, aligning with principles learned from crypto advancements over the past 15 years.
  • David says that the registration process for Homeland Security involves obtaining a license to release new models with low bars set at 10 billion parameters (20 GBs size), creating permissioned models. This process is distinct from permissionless levels. Regulatory agencies are gradually implementing approval processes for models, with steps such as a comment period by the Commerce Department where stakeholders could provide feedback on rules.
  • He adds that centralized AI companies face challenges due to regulatory requirements like needing a Safety Committee and a license. However, these regulations do not apply in decentralized contexts similar to Bitcoin’s decentralized nature. The trend towards fully decentralized AI models as people transition to decentralized networks to leverage GPUs for monetization. Jurisdictions like London or Dubai may be more favorable than the US for such operations.
  • David says that a bifurcation is anticipated in the industry, with major companies benefiting from regulatory support while startup competitors running centralized AI face challenges. Conversely, fully decentralized models built on open-source platforms like Grok and Llama 3 are gaining traction.

Importance of Meta’s Llama 3

  • David says that open-source models such as Llama 3 have rapidly caught up with proprietary versions in performance metrics, reaching parity with gold-standard models like ChatGPT4. This achievement signifies a breakthrough in cost-effectiveness and serious tool development potential. The release of open-source models offers cost-efficient alternatives to proprietary APIs from companies like OpenAI, enabling users to achieve comparable performance at significantly lower costs using their hardware or data centers.
  • He adds that large-parameter versions like a 70 billion parameter version are being developed, with a 400 billion parameter version underway, expected to surpass existing models.
  • David says that decentralized AI is being built on current models, enabling diverse use cases globally. Mark Zuckerberg‘s involvement in open source is due to Facebook’s vast GPU resources. Open-sourcing models like Llama 3 allow for fine-tuning by the community for specific use cases. The power of open source lies in its adaptability to various user needs beyond mass-market applications.

$MOR token emissions after Fair Launch

  • David says that a total supply cap of 42 million tokens exists for $MOR with emissions decreasing gradually over time without halving events. Emission dynamics involve staking mechanisms for earning rewards within the network ecosystem.
  • He adds that users can stake their more tokens and direct the rewards towards supporting future projects without involving committees or politics.
  • David says that holding $MOR tokens allows users to support innovative projects building on Morpheus without risking their principal amount. By skipping ICO complexities and centralization, Morpheus aims to replicate a fair launch mechanism for projects.
  • He adds that they are exploring a transition to Arbitrum. Lower fees on Arbitrum make it advantageous for activities like claiming $MOR tokens in an AI use case scenario.

Claiming $MOR

  • David says that staking pools are used to earn more in the crypto space. Secondary markets can be risky due to liquidity issues. Owning the key provides a safer option than relying on secondary markets. Staking $ETH is a common practice while waiting for rewards. Automated recurring revenue (ARR) is introduced as a new crypto primitive for sustainable funding.
  • He adds that ARR offers a sustainable source of funding for projects. It shifts from one-time token sales to continuous support from the community. By directing rewards towards specific projects, ARR incentivizes community engagement. This model allows for automating rewards and revenue streams in crypto.
  • David says that subscription models using $ETH holdings offer a seamless way to access services without direct payments. This approach aligns with software-as-a-service (SaaS) payment structures but leverages crypto assets instead. The model enables users to support projects or services they value without additional costs upfront.
  • He adds that DeFi opens up new trading avenues and yield optimization strategies. Projects launching on Morpheus will likely pioneer these concepts initially due to their understanding of yield mechanisms.
  • David says that users can stake $MOR tokens post-bootstrapping period to create liquidity on Uniswap paired with other assets like $ETH from earnings. Implied Network Value (INV) reflects market speculation around Morpheus tokens pre-launch.


  • David says that launching on Morpheus provides an added benefit by tapping into the entire community, attracting attention from early projects. It offers a mechanism where users can stake their claims based on personal interests, enhancing engagement.
  • He adds that owning the $MOR token provides exposure to projects built on Morpheus, similar to Ethereum’s model. Users can use $MOR as capital for new projects and access AI intelligence.
  • David says that Morpheus is positioned as a neutral platform where individuals can build and innovate. It provides avenues for developers to deploy tools and get rewarded, while also offering opportunities for those with capital to engage.
  • He adds that the pace of development on Morpheus is rapid, transitioning from proposals to real products within a short timeframe. Events like the Decentralized AI Summit showcase the progress from ideas to tangible outcomes like APIs and user adoption.

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Show Information

  • Medium: YouTube (Video)
  • Show: The Edge Podcast
  • Show Title: Morpheus: AI Revolutionizing The Crypto UX for 1 Billion Users
  • Show Date: May 8, 2024