About Compound

The Compound Governance Token (COMP) serves as a pivotal element within the Compound Finance lending protocol, enabling holders to exercise their governance rights. Owners of COMP can delegate their voting authority to various entities, including individual users, applications, or decentralized finance (DeFi) experts, thereby facilitating broader participation in the governance process. This delegation allows individuals who may not possess COMP tokens to engage in governance activities, promoting a more inclusive decision-making environment. In the governance framework, any participant with at least 1% of COMP delegated to their address is empowered to propose governance actions. These proposals can range from straightforward modifications to complex adjustments, such as introducing new assets, altering collateral factors, or adjusting interest rate models. This structure not only enhances the adaptability of the protocol but also encourages community involvement in shaping the future of the Compound ecosystem.