Compound will be releasing millions of COMP governance tokens

Compound will be releasing millions of COMP governance tokens

By DefiMoon | DeFiMoon | 27 Apr 2020


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The defi protocol Compound made another step towards total decentralization last week by shifting control of the underlying smart contract from a central administrator and into the hands of COMP token holders.

Most of the governance tokens are currently in the hands of shareholders and employees of Compound (4,995,051), but the remaining tokens are to be released to Compound users at some point in the near future.

"5,004,949 COMP are reserved for users of the protocol — we’ll be releasing more details of this plan in the coming weeks"

This means that if you have borrowed or lent funds on Compound in the past, you may be illegible for an allocation. There is speculation already on Twitter that Compound may be allocating COMP to borrowers/lenders based on total interest paid/earned.

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https://twitter.com/visavishesh/status/1250819172394819586

This would be an ideal scenario as the governance tokens would be going into the hands of users who have risked their own money borrowing/lending on Compound.

Compound said they won't be selling the tokens, therefore some kind of metric-driven distribution would have to be employed.

https://medium.com/compound-finance/compound-governance-decentralized-b18659f811e0


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