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Sometimes users’ votes are weighted proportionally to the size of their holdings of the governance token. Once a proposal is active, anyone holding COMP can vote for or against it. Each COMP token equals one vote, meaning the more COMP someone has, the more weight their vote carries.

Compound Finance is an ERC-20 token released in 2020 as the governance token for Compound Finance, a lending and borrowing protocol. It is one of several tokens currently held within the Index Coop’s DeFi Pulse Index . In other words, there’s nothing stopping COMP voters from voting in some sort of value capture system for the governance token at a later date when Compound is decisively out of the direct control its builders. Until then, these builders will likely play things conservatively in order to avoid the perception that they domineered such a large change for their own direct gain. Now, the specter of community governance votes has arrived in the Compound community, too, which means the promising dApp is being angled toward its true potential in being handed off from its builders to its users.

No returns accrue to the token in its present design, but that is something COMP holders could address themselves later. Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications. At Compound, our goal is to create financial infrastructure that applications and developers can rely on, forever. To get there, we intend to fully decentralize the Compound protocol — removing the largest single point of failure , and creating an indestructible, open protocol that can evolve in entirely new ways.

As a failsafe, our team will have the ability to suspend the governance system (though not the protocol’s 2-day timelock) during the sandbox. You can exposure to Compound Finance and other leading DeFi assets by buying DPI which includes COMP tokens. You can buy DPI directly from the Index Coop by connecting your wallet comprar compound governance token to the Index Coop app. More simply put, Compound has rolled out COMP in its initial stage as purely a governance token — to start, the token is only meant for deciding matters within the Compound ecosystem. The most exciting part of Compound Governance is casting your vote in a proposal to change the protocol.

Users of the Compound lending platform will begin earning COMP tokens in mid-June, pending the public review of the decentralized finance firm’s distribution plan. Compound https://coinbreakingnews.info/ works by allocating platform-specific tokens called cTokens to an investor when they lend. These cTokens represent your deposit as well as the interest you earn.

Compound has also demonstrated a commitment to security and transparency. The protocol has undergone four security audits with OpenZepplin and Trail of Bits. In December of 2021, the Compound DAO utilized a public bidding process to hire a security auditor. Thanks to the composable and open-access nature of Ethereum, anyone and everyone can create their own COMP and Governance projects. It no longer works on Mainnet because there are too many addresses for the Web3 provider to fetch at once.

Index Coop is a decentralized autonomous organization that powers structured decentralized finance products and strategy tokens using smart contracts on the blockchain. We offer a suite of sector structured products, leverage and inverse products, and yield-generating products. We aim to create products that are simple to use, accessible to everyone and secure. Our products are built on Set Protocol, a twice-audited, self-custodial DeFi tool that allows for the creation and management of Ethereum-based (or ERC-20) tokens. Among users, partner protocols, and our composable products, Index Coop maintains one of the largest partnership networks in the DeFi ecosystem. Decentralization is widely espoused as a core tenet of blockchain technology, and decentralized finance platforms help to make true decentralization a reality.

Comprar compound governance token

First, you’ll need to create an Ethereum wallet like Argent, Metamask, Gemini, or Rainbow. Leshner is currently the CEO and Hayes the CTO of Compound Labs, Inc., the open-source software development company that built the Compound protocol. That model can be contrasted with the MKR token, which currently trades for around $300 each and can even be auctioned off to raise funds during emergencies.

You can see a current list of delegates on the Compound Governance Leaderboard. The DeFi Pulse Index ($DPI) is a digital asset index that tracks the performance of “blue chip” decentralized financial assets across Ethereum. It combines the features of an ERC-20 token and a traditional structured product to create a 21st-century digital upgrade to traditional structured products.

Testing Compound Governance

If the proposer does not maintain their vote weight balance throughout the voting period, the proposal may be canceled by anyone. Luna is traded on digital exchanges, just like a regular cryptocurrency, but one of its core functions is to enable its holders to participate in votes on the network policy. A vote by luna holders precipitated a move to “burn” tens of millions of luna tokens in 2021 and mint millions of new TerraUSD stablecoins. The pros and cons of the decision were hotly debated among luna holders in the run-up to the vote.

This was considered a watershed moment in decentralization and the DeFi sector in particular, and many projects have followed suit or have stated an intent to do so. Proposal state flowchartAnd if you don’t like the governance framework, great! Proposals are executable code, not suggestions for a team or foundation to implement.

Comprar compound governance token

COMP — An ERC-20 token that designates the weight of a user’s voting rights. The more COMP a user has in their wallet, the more weight their delegation or vote on a proposal holds. Compound plans to issue 10 million COMP governance tokens, of which 42% (ie 4.23 million COMP) will be allocated to Compound users; the rest will be allocated to investors, development teams and future uses. A proposed governance change will only go to a vote if 1 percent of the total supply of COMP tokens signals that it should do so.

¿Qué necesito para comprar Compound Governance Token?

From there, the full process from voting to code change takes several days. We hope that COMP can set the standard for how governance tokens operate, and our team will write an Ethereum Improvement Plan (similar to the ERC-20 standard) to accelerate decentralization for the entire ecosystem. Compound was initially launched without a governance token, which hindered the Compound community’s ability to be involved in key decisions in making. But in 2020, COMP was released as a way to grant the community more agency through the ability to debate, propose, and vote on changes made to Compound. The goal was to decentralize the protocol, moving to a community-controlled model.

Proposal creation interface — Choose protocol modifications and initialize the proposal if the user has enough vote weight. Giving users transparent insight into upcoming potential changes to Compound, including proposals for adding new markets, or other upgrades. This guide will introduce you to Compound’s governance smart contracts, and walk you through the process of building custom functionality and interfaces that interact with the governance system. These entities aim to avoid central management altogether by placing authority wholly into the hands of stakeholders. With over $13 billion in assets on the platform and a market capitalization of $1.08 billion, Compound is one of the top three largest DeFi lending protocols.

In each market, 50% of COMP will be allocated to depositors and 50% of COMP will be allocated to borrowers. Users can obtain a corresponding proportion of COMP according to the proportion of their assets in the market. Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3.

  • The team behind Compound announced it had formally replaced the admin rights of its smart contracts with community governance, namely via the COMP governance token.
  • In other words, there’s nothing stopping COMP voters from voting in some sort of value capture system for the governance token at a later date when Compound is decisively out of the direct control its builders.
  • The Compound protocol can only be upgraded and configured by COMP token holders and their delegates.
  • Cryptopedia does not guarantee the reliability of the Site content and shall not be held liable for any errors, omissions, or inaccuracies.
  • The recipients of delegated voting rights, known as delegates, whether they be the COMP holders themselves or another address, may propose, vote on, and execute proposals to modify the protocol.

COMP, the governance token for the Ethereum-based lending dapp, was first announced in February. Compound is a protocol that allows users to lend and borrow cryptocurrencies. It was launched in 2018, and has quickly become one of the leading defi borrowing and lending protocols, with over $13 billion in assets on the platform.

Cómo comprar Mound Token

The largest DeFi project to date has been MakerDAO, which like Compound, is a lending dApp. With that said, some of DeFi’s biggest headlines to date have centered around MakerDAO governance votes, which are facilitated by the MKR governance token and the holders thereof. If you do not have COMP tokens, you can still delegate, and future COMP tokens you receive will automatically be delegated to your selected delegate address. A governance interface must read and write to and from the blockchain, and we’ll walk through some basic JavaScript code examples for doing both. However, write operations, like delegating or voting, can only be done with Web3.

The code examples create an array of JSON objects with the following proposal data. Let’s get all COMP token holders in descending order, based on their COMP balance. Proposal Explorer — Browse past or present governance proposals in a streamlined user interface. The primary goal of decentralization is to allow the protocol to evolve into resilient financial infrastructure, with no identifiable weak points and no reliance on any single team. In this way, the protocol can continue to scale with the growth of the entire crypto ecosystem, and last forever — or at least as long as Ethereum exists. In the decentralized world of blockchain, projects are often looking for ways to distribute a greater amount of power and responsibility to their users.

Decentralized Governance Voting

Compound was one of the first and most notable DeFi projects to completely turn over protocol decisions to community governance through the release of the COMP token. COMP holders hold the power to propose and vote on new changes to the network’s protocol, cementing Compound’s status as a pioneer in decentralized governance on Ethereum. The Compound protocol can only be upgraded and configured by COMP token holders and their delegates. Proposals — A proposal is executable code that modifies the protocol and how it works. In order to create a proposal, a user must have at least 60,000 COMP delegated to their address. Proposals are stored in the “proposals” mapping of the Governance smart contract.

Anybody can participate in Compound governance by receiving delegation, without needing to own COMP. The token also includes code to query an address’ historical voting weight, which is useful for building complex voting systems. The team behind Compound announced it had formally replaced the admin rights of its smart contracts with community governance, namely via the COMP governance token.

Compound platform, already a pioneer in DeFi, has proven itself a leader in the wider blockchain community by enacting its model of extraordinarily decentralized governance. The more you lent or borrowed on Compound, the more COMP tokens you were rewarded. Over 10,000,000 COMP were distributed in this allocation, with approximately half going to users and the other half to the founders, team members, and investors in Compound. Developers building on top of Compound are encouraged to actively participate in governance, which will be tested in the open.

For better UX, and a more robust application, query this data periodically from a back-end server and persist it. The following code examples are all available in the Compound Governance Quick Start repository on GitHub. Building an interface for governance or extending its functionality is straightforward once you understand the basics. For a more in-depth look at Governance, check out the full documentation. If you are a Compound user, this tutorial will give you one more way to get free tokens; if you are a new user, you need to carefully judge whether to participate.

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