June 8, 2020, 10:43AM EDT
• 5 min read
The Compound token model: how it can expand beyond governance
- The Compound team has recently removed admin privileges to their smart contracts and the protocol is governed fully by COMP token holders.
- 42% of COMP supply will be distributed to Compound’s users (borrowers and lenders on the platform) gradually over the next four years.
- Initially, COMP token holders will have governance rights over Compound’s smart contracts but no financial rights (to token burns or dividends). These rights can be modified by COMP token holders.