The official announcement that Compound Governance is finally active was made a few hours ago and now all changes to the protocol will be made by COMP token holders.
We're extremely proud to announce that community governance has replaced the administrator of the Compound protocol. From this point forward, all changes (from supported assets, to system parameters) will originate from COMP token-holders.https://t.co/AchhCwRrCL
— Compound (@compoundfinance) April 16, 2020
Thanks to this solution, the entire protocol administration will pass into the hands of the community which, thanks to the use of the COMP token, an ERC20 governance token, will have the right to vote.
As far as the technical aspect of the COMP token distribution is concerned, the Compound team shared the following overview:
- 2,396,307 COMP have been distributed to shareholders of Compound Labs, Inc., which created the protocol;
- 2,226,037 COMP are allocated to our founders & team, and subject to 4-year vesting;
- 372,707 COMP are allocated to future team members;
- 5,004,949 COMP are reserved for users of the protocol – we’ll be releasing more details of this plan in the coming weeks;
- 0 COMP will be sold or retained by Compound Labs, Inc.
In addition, those who will hold these COMP tokens will be able to see a dedicated interface on the app from which they can vote or create Compound Governance proposals and then actively interact with this protocol.
In conjunction with the activation of Compound Governance, Coinbase has already activated to simplify the process of interaction with the protocol and manage the COMP tokens directly from within users’ accounts.
This development of Compound, one of the most widely used applications in decentralized finance (DeFi), changes the user’s approach to a fully decentralized system with the possibility of actively participating in the protocol.
It should be remembered that recently, this month, the volumes on the Ethereum blockchain have equalled those of Bitcoin thanks to this sector, DeFi, led by stablecoins, which in recent days have become the object of attention of the G20, perhaps because of their incredible progress.