DeFi Platform Compound Goes Decentralized By Replacing Admin With Community Governance
- Open finance (DeFi) lending platform, Compound, sets out on a decentralization path with its latest “community governance token protocol” launch to replace the Compound administrators.
- COMP token will be the designated voting token for the blockchain startup.
- Coinbase Custody has since announced its support for COMP tokens and its governance process.
Compound launches its Governance protocol
In an announcement on Medium, Compound unveiled its latest Compound Governance Protocol that will move the platform towards decentralization. According to the report, starting Thursday, Apr. 16th, governance issues on Compound will move from the administrator to COMP token holders.
Compound is a DeFi lending based platform that raised $25 million in a seed funding round back in November and launched the COMP token this February. Compound's total volume locked in dollars stands at $93.4 million according to DeFi Pulse data, placing the app as the third-largest protocol in the open finance space.
Half of the 10 million distributed tokens will be distributed to users; 2,396,307 COMP distributed to shareholders of Compound Labs Inc.; 2,226,037 COMP distributed to founders of the protocol in a 4-year vesting period and the remaining 372,707 COMP allocated to future team members.
Coinbase Custody, one of the leading firms in the Series A funding round alongside Polychain Capital and a16z, announced its support for the new governance system, COMP token and other Compound based Tokens (cTokens).
Coinbase adds support for Compound Governance protocol
Coinbase Custody, the investment arm of Coinbase, one of the largest crypto exchanges, announced its support for open finance (DeFi) protocols starting with Compound Finance. The exchange will also support the COMP token and deposit/withdrawal of cTokens such as cETH, cZRX, cUSDC, cBAT, cDAI.
The official report reads,
“Coinbase Custody will offer a fully integrated solution in our existing web app, allowing our clients to view and vote on Compound Governance Proposals, as well as delegate governance rights to third parties.”
In the new governance protocol, users will be able to directly stake, vote and use their tokens in the Coinbase vaults. They can directly use their tokens to vote on a delegate or a proposal from their Coinbase Custody wallets.