If the majority of votes reaches at least 400,000, the proposal is queued and can be implemented two days later. Protocol changes take at least a week to implement, as there is a two-day review period for governance proposals, after which there is a three-day voting period. Wallets that hold at least 100 COMP tokens can create an autonomous proposal and wallets that hold 25,000 COMP are permitted to create governance proposals. Token holders can delegate their voting rights to any wallet address. The distribution is allocated to each liquidity pool and set by holders of the COMP token. Approximately 1,139 COMP tokens are distributed to users daily. It can also be used to implement upgrades to add new functionality.ĬOMP is the protocol’s governance token, which runs on Ethereum’s ERC-20 standard. There are currently more than 7.2 million COMP tokens in circulation out of a maximum supply of 10 million. This process can be used to determine which cryptocurrencies to support, and the various collateralisation factors and token distribution rules. The Compound tokenĬompound token holders can debate, submit and vote on proposals for changes to the protocol without the Compound team needing to be involved. Within each pool, lenders earn half the distribution and borrowers earn the other half. Leshner is CEO of Compound Labs, which develops the protocol, and Hayes is its chief technology officer (CTO).Ĭompound aims to offer cryptocurrency users an equivalent to the money-market accounts available in traditional finance, where investors receive a return on their deposits.Ĭompound offers lending pools where users can deposit their funds or borrow money using their crypto as collateral, enabling them to earn interest in return. The project was created in 2017 by Robert Leshner and Geoffrey Hayes, who previously worked at online food delivery firm Postmates. What is Compound coin and how does the protocol work? Can the price continue to rebound, or is it a ‘sell’? In this article, we look at the latest news on the project and expectations for the future direction of the price to help inform your trading decisions.Ĭompound is one of numerous interest-rate protocols that have emerged with the growth of decentralised finance (DeFi) applications on blockchains.Ĭompound is an autonomous, algorithmic protocol that runs on the Ethereum ( ETH) blockchain. This price boost followed the announcement that Compound would now offer borrowing options to institutions, bringing larger clients to the crypto platform. The Compound cryptocurrency token ( COMP) has started to recover from a long-term bearish trend, and was up 9% over the past seven days as of 16 September 2022. Can COMP buck the bearish crypto trend? – Photo: /
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