Compound will distribute COMP tokens to all users
Compound will distribute COMP tokens to all users
Defi

Compound will distribute COMP tokens to all users

By Alfredo de Candia - 29 May 2020

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Compound has announced that their governance token, COMP, will be distributed to all those using the lending protocol.

As already known, the new Compound platform has its own decentralized governance which can be accessed through a dedicated token, COMP.

This new system was put to the test by Coinbase Custody and no vulnerabilities were discovered, hence everything is now ready for the mass of users using the platform for both lending and borrowing.

A working version is already being tested on Ethereum’s Kovan network and after this phase, it will directly launch on the mainnet.

The tokens that will be distributed are in total over 4 million, contained in a Reservoir contract. 0.50 COMP will be transferred for each block created, so about 0.50 COMP every 2.8 days.

Each crypto will have its own market according to its size. Then, for each market, these tokens will be divided in half between lenders and borrowers and, after they have accumulated 0.001 COMP, they will be added with the next transaction to the wallet of users who will interface with the Compound platform.

The next steps that will precede this revolution will be to abdicate the Guardian function that allows the Compound team to disable the governance in case of emergency, allowing the platform to self-regulate thanks to COMP holders.

The distribution of the tokens, which should start next month, will take place over 4 years and this will allow the community to shape the future of the platform and be encouraged to act in its best interest, as recalled by the founder of Compound, Robert Leshner:

“The individuals, applications and institutions that use the Compound protocol are capable of collectively stewarding it into the future – and are incentivised to provide good governance”.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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