The Compound Finance (COMP) team announced on June 29 that a new proposal that changes the distribution rules of its COMP token has been approved. Compound Proposal #11, the changes of which will come into effect on July 1 at 12:31 AM, was almost unanimously approved with only 4 addresses voting against the change. 771,804 was staked in favour of the change, while less than 1 had been staked against the motion. A total of 115 wallet addresses had participated in the voting process.
The patch alters the “allocation of COMP across markets, by removing the borrowing interest rate as a weighting mechanism.” The changes have partly been motivated by the desire to reduce griefing for liquidity providers.
These changes come as the Compound team works out how to prevent users from gaming the system, which some have managed to do with the Basic Attention Token (BAT) and 0x (ZRX) markets. The new change will have users earn COMP based on the dollar value of assets and is expected to have users migrate from specific assets to other markets.
Compound officially launched the COMP token on July 15, quickly becoming popular with the cryptocurrency community. Within 2 days, the COMP token became the largest asset in the defi space by market cap, overtaking Maker. It now has over $2.1 billion in market cap at the time of publishing, according to market data platform Defimarketcap.