Sirwin
Sirwin

How will the new Compound governance proposal, approved by a wide vote, affect users?


BlockBeats news, the Compound Governance proposal #11 was approved at 2:37 am Beijing time on July 1. The proposal will take effect in two days. According to the content of the proposal, there will be two main changes:

1) The borrowing rate, which serves as a weighting mechanism, was cancelled, and the allocation of COMP in various markets was adjusted. Each market allocates COMP according to borrowing requirements; The money is then divided equally between suppliers and borrowers. The COMP rewards awarded to those who participate in the loan mining will be distributed in dollars. & have spent

2) Previously, users could use “flash loans” to manipulate the timing of cross-market lending to get more COMPs. After that, users would need externally owned accounts (rather than smart contracts) to refresh the allocation in each market, thus reducing the risk of evil.

The allocation formula used to determine the COMP allocated to each market for each block is:

Total amount borrowed * Lending rate per block * DOLLAR value changed to:The total amount borrowed * DOLLAR value.

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The COMP rewards awarded to those who participate in the loan mining will be distributed in dollar value, which means that users are likely to exit the high-risk token (BAT) and 0X (ZRX) markets in favor of safer and stable assets such as USDC and DAI.

The Comp voted for 771,804 mortgages. Less than one COMP token voted against it. According to CoinGecko, this is equivalent to 26% of Comp’s mobile votes in favour of the reform.

 

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