Constitutes a precursor of the transcription factor (PubMed:28441531). Mediates the autocatalytic cleavage that releases the Myelin regulatory factor homolog 2, N-terminal component that specifically activates transcription of genes involved in synaptic rewiring during nervous system maturation (PubMed:28441531). Membrane-bound part that has no transcription factor activity and remains attached to the endoplasmic reticulum membrane following cleavage. Transcription factor that specifically activates expression of genes involved in synaptic rewiring during nervous system maturation (PubMed:28441531). Specifically required for dorsal D (DD) GABAergic motor neurons synaptic rewiring (PubMed:28441531). Acts in complex with myrf-1 paralog (PubMed:28441531). Homotrimer (By similarity). Interacts with myrf-1 (PubMed:28441531). In early L1 larvae, localizes to the cell membrane, but then localizes to the nucleus in late L1 larvae (PubMed:33950834). Cell membrane localization is promoted by pan-1 (PubMed:33950834). Translocates from the cytoplasm to the nucleus upon autocatalytic cleavage. Highly expressed in L1 stage larvae. Myelin regulatory factor: The peptidase S74 domain, also named Intramolecular Chaperone Auto-processed (ICA) domain or Intramolecular Chaperone Domain (ICD), has protease activity and mediates autocatalytic processing of the protein to generate the Myelin regulatory factor, N-terminal active transcription factor and the Myelin regulatory factor, C-terminal components. Myelin regulatory factor: Follows autocatalytic cleavage via the peptidase S74 domain. Autoprocessing is apparently constitutive and is essential for transcriptional activity. No visible phenotype. Worms show normal dorsal D (DD) GABAergic motor neurons rewiring. Worms lacking both myrf-1 and myrf-2 display defective DD neurons rewiring. Belongs to the MRF family.