Ever since COMP token-holders replaced our team as administrator of the Compound protocol in April, we’ve been thrilled to watch community governance in action. While we’ve watched from the sidelines, you’ve developed, proposed, approved, and implemented changes to the protocol.
Since the distribution of COMP began in June:
- 15 governance proposals were created; 12 were implemented
- A new interest rate model was developed by Dharma, and deployed for the DAI and USDT markets
- The Augur team spearheaded risk management changes for REP, during the upgrade to REPv2
- COMP token-holders voted to change the protocol’s price oracle to the Open Price Feed, an open-source project where a set of reporters sign price data which can be posted on-chain by any Ethereum address — and which doesn’t rely on our team
- The community built an entirely new feature, market-level Borrowing Caps, to limit risk to the protocol
- Autonomous Proposals were created, which allow anybody with 100 COMP to gather support for a Governance proposal
COMP Distribution Update
When community governance first went live, we explained how the total supply of COMP tokens would be allocated. Out of 10,000,000 total COMP, we reserved 775,000 tokens “for the community to advance governance through other means — which will be announced at a future date.”
Here’s how those tokens are being distributed to the community:
- In June, we designated up to 500,000 COMP for distribution through Coinbase Earn. COMP tokens will be available through Coinbase Earn until November 2021, at which point Coinbase will transfer all remaining tokens to the Compound protocol’s Reservoir contract
- Today, we sent the remaining 275,000 COMP directly to the Reservoir contract. We believe the best way to promote decentralization is to allow the community to allocate these tokens through the Governance process
In total, 5,004,949 COMP will be distributed to the community — just over half of the total supply.
From all of us at Compound, 📈.