- Compound will now issue COMP tokens to the users of their protocol in a bid to achieve full decentralization.
- They have released an elaborate plan to be orchestrated over the course of four years as they seek to hand over the governance of the protocol to the Compound users.
News has emerged that Compound administrators of the DeFi lending protocol COMP now seeks to bring onboard their shareholders in the governance process of the protocol as they push towards achieving full decentralization.
In a post, Compound CEO, Robert Leshner, unveils the road map of how they intend to scale up governance to the entire Compound Community. COMP token holders and respective delegates would now be allowed to propose, debate, and vote on all matters relating to their protocol. The vast protocol boasts of locking in at least $100 million in its DeFi ecosystem.
Notably, the COMP governance token was unveiled this year in February, with the majority of the tokens being allocated to Compound top brass and investors. This is when they first included Compound users in decision-making, stipulating that with just 1% of the users backing a proposal they would be able to vote on whether the change was in their best interests. The CEO is convinced that complete decentralization is the way forward, as he shares the sentiment that if there was a Bitcoin corporation controlling the BTC, it wouldn’t be as popular.
“Distribution will be spread over 4 years”
According to CEO Leshner, those who leverage the Compound protocol will automatically qualify and continuously receive the governance tokens as the future of the protocol lay in their hands. 4,229,949 approximately 42% of the COMP token will be diverted to a Reservoir contract. It would in turn disburse 2,880 tokens daily in a four-year plan distribution plan. The plan is aligned to their objective of bringing more users into the governing of the Protocol.
It will trickle down to their array of markets: ETH, USDC, DAI based on the interests generated from the respective markets. From which they will be split 50:50 ratios for suppliers and borrowers with the COMP transferred straight to their wallets for transactions once their addresses reach the 0.001 COMP set threshold.